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

Publication

FRBP 9006 Doesn't Take Vacations

Bodie Colwell of Preti Flaherty’s Creditors' Rights & Bankruptcy Group, has authored the article "FRBP 9006 Doesn't Take Vacations," appearing in the October 2023 issue of the American Bankruptcy Institute's Young & New Members Committee newsletter...

Publication

Maine Workers’ Compensation Update - November 2023

The following is an overview of developments with respect to proposed legislation as well as new procedures on independent contractor determinations, medical fee schedule updates, and the use of updated Board forms, including medical...

News

Remembering Preti Flaherty Founder Robert F. Preti

We at Preti Flaherty are deeply saddened by the passing of one of our founding partners and longtime friend, Robert Preti. Bob was not just a part of our firm; he was a part...

News

Preti Flaherty Welcomes Employment Law Attorney Brooke K. Haley to the Firm

Preti Flaherty is pleased to announce that attorney Brooke K. Haley has joined the firm’s Employment Law Practice Group as a Partner. Brooke will work primarily from the firm’s Portland office. Brooke’s practice centers...

Press Coverage

Maine Media Organizations Oppose Foreign Electioneering Ban

Question 2 on Maine’s November ballot asserts that corporations owned or controlled by foreign governments do not have the same rights to political speech as companies here in the U.S. and that foreign governments should be prohibited...

Press Coverage

Maine Center for Public Interest Reporting Wins Public Records Dispute with York County Jail

Event

Eric Osterberg Presents Webinar on IP Rights and Infringement With Podcasts and Livestreaming

Eric Osterberg joins a panel of industry experts to present “IP Rights and Infringement With Podcasts and Livestreaming.” The panel focuses on guiding intellectual property counsel on the IP issues that arise when creating...

News

David Van Slyke Reappointed by Governor Mills to New England Interstate Water Pollution Control Commission

Van Slyke is one of five Commissioners from the state of Maine overseeing NEIWPCC PORTLAND—Preti Flaherty’s Managing Partner, David Van Slyke, has been reappointed by Governor Janet T. Mills to the New England Interstate...

Press Coverage

Bangor Releases Unredacted Files on Effort to Close Homeless Encampment

Following a five-month effort by local media, represented by attorney Sigmund Schutz, chair of Preti Flaherty's Media Law Practice Group, the City of Bangor finally released unredacted records related to its attempts to close a...

Publication

November 7, 2023 Election Results

Maine’s November 2023 statewide elections were exclusively referendum questions, four were citizen initiatives, and four were proposed amendments to the Maine Constitution. Of these, Questions 5, 7 and 8 were placed on the ballot...