On 24 July 2024, the Consumer Financial Protection Bureau (CFPB) issued Circular 2024-04, which provides critical guidance on whistleblower protections under Section 1057 of the Consumer Financial Protection Act (CFPA).
This circular has significant implications for businesses regarding confidentiality agreements and their potential conflict with federal whistleblower protections.
It clarifies that while confidentiality agreements can protect legitimate business interests, they must not infringe on employees' rights to report suspected violations of consumer financial laws.
On 17 November 2023, the New York Governor signed Bill S4516 into law.
It amends Section 5-336 of the New York General Obligations Law with immediate effect and further restricts the use of nondisclosure agreements concerning the resolution of employment discrimination, harassment, and retaliation claims.
It applies to all agreements signed or entered into after 17 November 2023.
The National Labor Relations Board (NLRB ) recently held, in McLaren Macomb, 372 NLRB No. 58, that an employer violates Section 8(a)(1) of the National Labor Relations Act (NLRA) with severance agreements containing overly broad non-disparagement and confidentiality of agreement clauses with employees.
The decision states that offering employees such kind of agreement restricts their ability to exercise their rights to self-organisation, join labour organizations, and engage in "other concerted activities" to improve the workplace.
On 23 March 2023, the NLRB General Counsel issued a memorandum (Memorandum GC 23-05) to guide the issue, taking an expansive view of the decision.
The report, published on 7 March 2022, aims to collect information about NDAs in order to provide a resource for policy-makers in their deliberations about any future regulation of the use of NDAs.