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Rhode Island Governor Signs Ban on Nondisclosure, Non-Disparagement Agreements

19 Jul


Update applicable to:

Employers with four or more employees

What happened?

Governor Daniel McKee has signed a bill that prohibits the use of nondisclosure or non-disparagement agreements regarding civil rights abuses “as a condition of employment.” According to a recent update to the legislature’s website, the bill was signed on June 22, 2023 and took effect immediately.

What are the details?

The law, Senate Bill (S) 0342, prohibits employers from requiring employees to sign a nondisclosure or non-disparagement provision “concerning alleged violations of civil rights or alleged unlawful conduct, or any agreement with a clause that requires alleged violations of civil rights remain confidential.” Under the law, any contractual provision that violates this prohibition is “void as a violation of public policy.”

For more information, please see the links below:

Press Release

Official Bill Page

Bill S0342

Summary of Bill

What do employers need to do?

Employers should review the links above, including the summary of the bill. Employers should consult with their employment attorney regarding any existing practices and agreement templates that may need review and possible edits to ensure compliance.

Need help understanding how changes to employment laws will affect your business?

Learn more about how Vensure's Rhode Island PEO services can help you navigate complex employment laws and keep your business compliant.

This communication is intended solely for the purpose of conveying information. The present post might incorporate hyperlinks directing readers to websites managed by third-party entities. The inclusion of any links within this communication is meant to serve as points of reference and could encompass opinion articles from various law firms, articles from HR associations, official websites, news releases, and documents of government agencies, and other relevant third-party sources. Vensure has no authority over these external websites and bears no responsibility for their content. Furthermore, Vensure does not endorse the materials present on these websites. The contents of this communication should not be interpreted as legal advice or as a legal standpoint concerning specific facts or scenarios. Nor should it be deemed an exhaustive compilation of facts potentially pertinent to federal, state, or local laws. It is strongly advised that employers solicit legal guidance from an employment attorney when undertaking actions in response to any legal updates provided. This is due to the possibility of future alterations occurring in federal, state, and local laws, regulations, as well as the directives and guidelines issued by governing agencies. These changes may transpire at any given time, potentially rendering certain portions of the content within this update void or inaccurate.

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