On June 25, 2024, Louisiana enacted legislation that significantly impacts how employers can manage hostile work environments and sexual harassment claims. Effective August 1, 2024, Louisiana House Bill 161 prohibits employers from enforcing non-disclosure agreements (NDAs) related to hostile work environments or sexual harassment claims. This means any pre-dispute NDA requiring employees to stay silent about such claims becomes unenforceable.
In addition, the legislation includes definitions of sexual harassment and hostile work environment. Of note, the definition of a hostile work environment is broad and can include any condition where “harassment rises to a level that alters the ability of an employee to perform the employee’s duties.”
The law does allow for confidential settlement agreements after a sexual harassment claim has been filed or a dispute has arisen. This means employers can still negotiate confidential settlements with employees who wish to keep the details of the case private.
Next Steps
Employers should carefully examine all employment contracts and pre-employment agreements to identify any clauses that might restrict employee disclosure of sexual harassment claims as these clauses will be unenforceable under the new law. If needed, employers should revise their standard employment agreement templates to remove any non-disclosure provisions related to sexual harassment or a hostile work environment. Employers should consult with legal counsel to ensure employment agreements comply with the new law.
Employers should also review their Equal Employment Opportunity and Non-Harassment policies to confirm that they cover allegations of sexual harassment or hostile work environment as defined in this new law.
As a best practice, employers should foster a workplace culture where employees feel comfortable reporting sexual harassment without fear of retaliation including promoting clear reporting procedures and offering anti-harassment training programs.
