What happened?

On June 25, 2024, the Louisiana Legislature enacted without the signature of the Governor Bill HB 161, which creates some restrictions on non-disclosure agreements in employment.

What are the details?

Key Bites:

• The new state statute clarifies what behaviors employees should not tolerate, even though such behaviors are already illegal.

• Nondisclosure clauses required by an employer and agreed to before a hostile work environment dispute or sexual harassment dispute will be unenforceable.

• The law defines key terms, including “hostile work environment” and “dispute.”

• It allows employees to enter into confidential settlement agreements after a report of hostility or harassment is filed, or after a hostile work environment dispute or sexual harassment dispute has occurred.

Business Considerations

• Employers should review their employment and separation agreements signed during employment to ensure compliance with the new law.
• Employers should review and update their policies, practices, and procedures, if applicable, to match the new restrictions imposed by the law.

Source References

• LA HB 161
• Louisiana Becomes Latest State to Prohibit Nondisclosure Clauses Related to #MeToo Claims (Littler Mendelson P.C.)
• Louisiana makes it clear: Nondisclosure agreements can’t hide sexual misconduct at work (Louisiana Illuminator)

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