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House passes bill limiting enforceability of employment confidentiality clauses tied to assault and harassment
Summary
HB 55 passed the House after sponsors and colleagues agreed a second substitute clarifies mutuality for non‑employment NDAs and preserves subpoena compliance; sponsor said the change gives victims more ability to speak about workplace wrongdoing. 71–0 vote.
The Utah House of Representatives on Jan. 30, 2024, passed second substitute HB 55, legislation that sponsors described as making non‑disclosure and non‑disparagement clauses unenforceable when they are conditions of employment in matters involving assault or harassment.
Representative Birkland, the bill sponsor on the floor, framed the measure as a step to empower victims and discourage practices that silence employees after workplace misconduct. On the House floor she recounted an "unscientific poll" she conducted among female legislators, saying "of the 21 women here as legislators right now, 16 of them have been ... harassed or assaulted in the workplace," and argued the bill gives victims a means to speak and reduces workplace misconduct by removing enforceability when such clauses are conditions of employment.
Representative McPherson, who worked with the sponsor and stakeholders, described the adopted substitute as a friendly amendment that clarifies mutual nondisclosure agreements that exist outside employment and protects compliance with civil and criminal subpoenas. "If a company were to take action to try to enforce [an NDA] in those circumstances, that they would be responsible for attorney's fees as well," McPherson said on the floor.
The substitute was presented as preserving necessary balances: it targets clauses that operate as conditions of employment while leaving in place protections for legitimate confidentiality needs outside the employment context and preserving the ability to comply with subpoenas. The House adopted the second substitute and voted to send HB 55 to the Senate with a recorded 71–0 vote.
The bill’s final statutory language and any fiscal or administrative impacts will be clarified as it moves through the Senate and, if enacted, during implementation by state labor regulators and courts. The sponsor urged colleagues to support the measure, saying it is intended to give victims more voice and reduce instances of harassment in workplaces across Utah.
Ending: HB 55 passed the House and was transmitted to the Senate for consideration.
