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

Rhode Island 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.

Quick Hits

• The Rhode Island governor signed a bill that prohibits employers from requiring employees enter into nondisclosure or non-disparagement agreements.
• The new law took effect immediately.

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.” The new law took effect immediately.

Ogletree Deakins previously covered the passage of S0324 in our story, “Rhode Island Nondisclosure Agreements Bill Moves to Governor; Senate Passes New Noncompete Ban,” which indicated that the bill had been sent to the governor’s desk.

A separate Rhode Island bill to prohibit noncompetition agreements between a buyer and a seller of a business that recently passed the state Senate is still under consideration in the state House.

Ogletree Deakins will continue to monitor developments and will provide updates on the Rhode Island and Unfair Competition and Trade Secrets blogs as additional information becomes available.

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