New Nevada Law Restricts Confidentiality In Contracts And Settlement Agreements

A new Nevada law has been passed by the Nevada Legislature that prohibits the parties to a contract or settlement agreement from agreeing to restrict a party to the contract from testifying about another party’s criminal offense, sexual harassment, or an employer’s act of discrimination or retaliation. The new law adds to Chapter 50 of the Nevada Revised Statutes to provide that such a provision in a contract is void and unenforceable.

Assembly Bill 60 was signed by Governor Sisolak on May 21, 2021 and becomes immediately effective. It will apply, however, only prospectively; i.e., it applies to any contract or settlement agreement entered into on or after May 21, 2021.

Confidentiality provisions can still be used in severance agreements and settlement agreements, but the language used needs to be modified to conform to this new law. You may remember that these types of changes were also necessary when the 2019 Nevada Legislature passed AB 248. KZA attorneys are available to help you modify your contract language to comply with AB 60.

KZA Employer Report articles are for general information only; they are not intended and should not be construed to be legal advice. Reading or replying to such articles does not establish an attorney-client relationship. In addition, because the subject matters and applicable laws discussed in Employer Report articles are often in a state of change and not always applicable to every type of business entity or organization, readers should consult with counsel before making decisions based on the same.