Louisiana recently passed new legislation prohibiting employers from including nondisclosure provisions in agreements with employees that prospectively forbid employees from disclosing or discussing certain facts or claims concerning sexual harassment.

Specifically, effective August 1, Louisiana employers will be prohibited from including in agreements with employees a “nondisclosure clause,” defined as “an agreement between an employee and employer that prevents, or has the effect of preventing, an employee from disclosing or discussing a hostile work environment, allegations of a hostile work environment, sexual harassment, or allegations of sexual harassment.” Notably, a hostile work environment under the statute is not explicitly tied to any traditionally recognized protected class. Rather, it is defined as “conditions where harassment rises to the level that the harassment alters the ability of an employee to perform the employee's duties.”

Despite this prohibition, employers can still enter into a confidential settlement agreement with an employee relating to claims of a hostile work environment or sexual harassment, provided the agreement is entered into after a report of hostility or harassment is filed or a dispute concerning hostile work environment or sexual harassment has been initiated.

Louisiana joins a growing number of states seeking to curb employers’ ability to enter into confidentiality and nondisclosure agreements with employees, including California, Oregon, Colorado, New York and Washington. Given the upcoming effective date, employers with employees in Louisiana should review their standard employment agreements for compliance with the new law and other applicable state laws limiting provisions in this area.

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