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SENATE BILL 324
57TH LEGISLATURE - STATE OF NEW MEXICO - FIRST SESSION, 2025
INTRODUCED BY
Katy M. Duhigg
AN ACT
RELATING TO EMPLOYMENT; PROHIBITING NONDISCLOSURE AND NON-
DISPARAGEMENT AGREEMENTS; AMENDING A SECTION OF THE NMSA 1978.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. Section 50-4-36 NMSA 1978 (being Laws 2020,
Chapter 16, Section 1) is amended to read:
"50-4-36. WORKPLACE SEXUAL ASSAULT, SEXUAL HARASSMENT,
SEXUAL DISCRIMINATION AND SEXUAL RETALIATION CLAIMS--
NONDISCLOSURE AND NON-DISPARAGEMENT AGREEMENTS AND CERTAIN
ACTIONS PROHIBITED.--
A. A private employer shall not, as a term of
employment, require [an ] a prospective, current or former
employee or independent contractor to sign a nondisclosure or
non-disparagement provision of a settlement agreement relating
to a claim of sexual assault, sexual harassment, sexual
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discrimination or sexual retaliation in the workplace brought
by the prospective, current or former employee or independent
contractor or prevent the prospective, current or former
employee or independent contractor from disclosing a claim of
sexual assault, sexual harassment, sexual discrimination or
sexual retaliation occurring in the workplace or at a work-
related event coordinated by or through the employer.
B. This section does not prohibit a settlement
agreement [between an ] with a prospective, current or former
employee or [former employee ] independent contractor alleging
sexual assault, sexual harassment, sexual discrimination or
sexual retaliation from containing a confidentiality
[provisions. A confidentiality provision is permitted when ]
provision if the provision :
(1) [it] relates to the monetary amount of a
settlement; or
(2) at the prospective, current or former
employee's or independent contractor's request, [it] prohibits
disclosure of factual information related to the underlying
sexual assault, sexual harassment, sexual discrimination or
sexual retaliation claim or facts that could lead to the
identification of the prospective, current or former employee
or independent contractor .
C. [At the sole request of the employee, a
settlement agreement subject to this section may contain a
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confidentiality provision that prevents the disclosure of
factual information related to the underlying sexual
harassment, discrimination or retaliation claim. ] The
provisions of this [subsection ] section shall not be construed
to prevent disclosure of information that is the subject of the
confidentiality provision if disclosure is required to be made
in a judicial, administrative or other governmental proceeding
pursuant to a valid subpoena or other applicable order as
otherwise required by law.
D. Except as provided in [Subsections B and ]
Subsection C of this section, a confidentiality provision in a
settlement agreement subject to this section is void and
unenforceable as a matter of law.
E. In any civil action involving a claim of sexual
assault, sexual harassment, sexual discrimination or sexual
retaliation, a plaintiff may present evidence that the employer
against whom the action was filed entered into one or more
agreements that included a nondisclosure or non-disparagement
clause involving the conduct of the same individual or
individuals who are alleged to have engaged in the unlawful
acts. Such evidence may be used in support of an award of
punitive damages.
F. With respect to a claim of sexual assault,
sexual harassment, sexual discrimination or sexual retaliation
in the workplace, any nondisclosure clause or non-disparagement
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clause agreed to before the dispute arises shall not be
judicially enforceable in instances in which conduct is alleged
to have violated federal, tribal or state law.
G. Notwithstanding any other provision of this
section, at the election of the person alleging conduct
constituting a sexual assault, sexual harassment, sexual
discrimination or sexual retaliation dispute, or the named
representative of a class or in a collective action alleging
such conduct, no predispute arbitration agreement or predispute
joint-action waiver shall be valid or enforceable with respect
to a case that is filed under federal, tribal or state law and
relates to the alleged sexual assault, sexual harassment,
sexual discrimination or sexual retaliation dispute.
H. The provisions of this section are to be
liberally construed to fulfill their remedial purpose. "
SECTION 2. APPLICABILITY.--The provisions of this act
apply to agreements entered into between a private employer and
a prospective, current or former employee or independent
contractor on or after June 20, 2025.
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