Publications
December 14, 2022

President Biden Signs Speak Out Act

On December 7, 2022, President Biden signed the "Speak Out Act" which became effective that day. The Act prohibits the enforcement of blanket non-disclosure and non-disparagement clauses that are entered into before any allegation of sexual assault or sexual harassment. If such a provision is agreed to before a dispute arises it will be judicially unenforceable. Congress found that such provisions "can perpetuate illegal conduct by silencing those who are survivors of illegal sexual harassment and assault or illegal retaliation" and that they protect perpetrators, "enabling them to continue their abuse." The Act is in line with the new law signed in March to prevent the forced arbitration of sexual harassment and sexual assault claims.

A non-disclosure clause is defined in the Act as "a provision in a contract or agreement that requires the parties to the contract or agreement not to disclose or discuss conduct, the existence of a settlement involving conduct, or information covered by the terms and conditions of the contract or agreement." A non-disparagement clause is defined as a "provision in a contract or agreement that requires 1 or more parties to the contract or agreement not to make a negative statement about another party that relates to the contract, agreement, claim, or case."

Because the Act applies to pre-dispute clauses, employers remain able to include non-disclosure and non-disparagement clauses in settlement agreements and separation agreements that resolve sexual harassment or sexual assault claims. The Act does not limit employers seeking to protect trade secrets or other proprietary information.

The federal law does not prevent states from enacting more restrictive laws. Employers should be mindful of what state and local laws require.

We recommend employers review their employment agreements and policies to ensure compliance with this Act.

Firm Highlights

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Hire Education: Best Practices for Onboarding New Employees

As an HR professional, hiring the right talent, addressing employee needs, and managing terminations are just a few of the most challenging problems that arise. During this year's three-part Employment Breakfast Webinar Series, we'll...

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Legal Foundations Lunch and Learn Series: Understanding Indemnity Clauses

Our Legal Foundations Lunch and Learn Series features monthly 30-minute webinars that provide in-depth insights into recent updates, industry trends, and key issues impacting the construction industry. Preti Flaherty attorneys Kenneth Rubinstein and Nicholas...

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Helping Employers Navigate the New Independent Contractor Rule and Compliance Challenges

On March 11 th , the United States Department of Labor’s (DOL) new Independent Contractor Rule goes into effect.  As your organization readies itself for compliance, it’s imperative to scrutinize your independent contractor classifications...

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USCIS Announces H-1B Registration Period for FY2025: New “Beneficiary Centric” Registration Process and Increased Fees

USCIS has recently announced a series of changes that will impact the FY2025 H-1B registration system and cap filing season. H-1B Registration Period and Organizational Accounts As in prior years, under this process, prospective petitioners...

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Attorney Jeffrey Thaler Named to 2024 Lawdragon Green 500: Leaders in Energy Law

Preti Flaherty’s attorney Jeffrey Thaler has been recognized by  Lawdragon  as one of the top 500 Leaders in Energy Law. This is Jeff’s third time named to this prestigious list since the first publication...

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Failure to Follow Your Contract's Notice Requirements Can be Costly

In Kinetic Systems, Inc. v. IPS-Integrated Projects Services, LLC et. al., No.: 20-cv-1125 (D.N.H. February 6, 2024), the U.S. District Court for the District of New Hampshire granted summary judgment for a general contractor...

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Preti Attorneys File Suit Against Al-Generated Robocalls in the 2024 NH Presidential Primary

Representing the League of Women Voters of New Hampshire, the League of Women Voters of the United States, and individual voters, Preti Flaherty, with co-counsel, filed a federal lawsuit against Steve Kramer, Lingo Telecom...

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Sigmund Schutz to moderate panel at 36th Annual Media and the Law Seminar: Under Attack! Existential Threats to Journalism and Free Speech

From unlawful searches and seizures of newsrooms and highly contentious litigation to physical harassment and calls for violence online, journalists and news organizations are under attack like never before. At the 36 th Annual...

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Benchmark Litigation Names Preti Flaherty 2024 “Maine Firm of the Year"

Benchmark Litigation has named Preti Flaherty as 2024 Litigation Firm of the Year in the State of Maine. Through extensive peer- and- client reviewed research, as well as analysis of casework; the Benchmark Awards...

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Important Updates to American Arbitration Association Construction Industry Rules and Mediation Procedures

The American Arbitration Association (AAA) updated its Construction Industry Rules and Mediation procedures (AAA Rules), effective March 1, 2024, marking the first update since 2015. The updates are important because the AAA Rules are...