New Nevada Law Prohibits Settlement Agreements From Restricting Disclosure of Gender-based Discrimination Claims

A new Nevada law, Assembly Bill No. 248, went into effect on July 1st, 2019, prohibiting employers from using agreements that restrict a person from disclosing information related to sex offense crimes or gender-based discrimination by an employer.

Outlined in AB 248 is the conditions in which the employer would not be legally allowed to prohibit the employee from disclosing details surrounding a claim. Those conditions are: 1) When the allegations are in reference to conduct which would be considered a felony as a sexual offense under Nevada law, even when that alleged offense has not been the subject of investigation or prosecuted in a court a law; 2) When such actions would discriminate the individual on the basis of their sex; or 3) When such actions would be an act of retaliation against the claimant for reporting the alleged abuse.

This law is similar to other recent legislation in California, New Jersey, and New York.

Nevada employers who are in the midst of resolving any claim involving sexual misconduct or gender-based discrimination should seek information from labor and employment counsel with questions concerning the validity of any confidentiality provisions in light of this new law.