PROHIBIT CERTAIN EMPLOYMENT AGREEMENTS

SB 324 prohibits private employers from requiring employees or contractors to sign secrecy or non-disparagement clauses in settlement agreements related to workplace sexual assault, harassment, discrimination, or retaliation claims. The bill allows limited confidentiality only for settlement amounts or if requested by the employee to protect their identity or specific facts. Employers cannot enforce non-compliant secrecy clauses, and courts may consider such clauses when awarding punitive damages. This law applies to agreements entered into on or after June 20, 2025, directly affecting employers and workers in cases involving workplace misconduct.