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New Mexico Bans Nondisclosure Agreements for Sexual Harassment Claims


It has been a busy past few weeks for labor and employment law updates around the country, with New Mexico joining that growing list by passing HB 21 which bars employers in the state from using nondisclosure agreements with workers.

The legislation, set to go into effect in May, bars employers from requiring an employee from signing a nondisclosure agreement as part of a settlement in relation to a claim of sexual harassment, discrimination p, or retaliation.  One notable carve out in the legislation is a provision that a confidentiality provision is lawful so long as it relates to the monetary amount if a settlement.  As well, the employer (and only the employer) may request a confidentiality provision “to the disclosure of facts that could lead to the identification of the employee” and “factual information relating to the underlying claim.”



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