New Law Encourages Employees to Speak Up About Workplace Harassment or Sexual Assault
Earlier this year, the Utah Legislature passed a new law that allows and/or encourages victims of sexual harassment and assault to speak out. This law prohibits provisions in a contract that would prevent the disclosure of a harassment or assault. This means business owners cannot require employees to sign an agreement prohibiting them from making a workplace sexual misconduct claim. Likewise, an employee can back out of a settlement agreement containing a confidentiality or non-disparagement clause regarding sexual misconduct within three days of signing the contract.
The new Utah law also bans retaliation against employees who refuse to sign these kinds of prohibited agreements. All businesses (regardless of size) are required to follow this new law, and the law applies to any agreements signed on or after January 1, 2023.
The Bottom Line: Utah employers should immediately discontinue the use of any nondisclosure or non-disparagement provisions that restrict employees from talking about sexual harassment, assaults, or other similar workplace misconduct. Utah business owners also should not attempt to enforce these agreements if their employees have already signed them. If you would like us to review your employment agreements or separation agreements, please reach out and we will be happy to help.