Louisiana has recently enacted two laws that significantly expand employee protections: Act No. 541 and Act No. 781. Both laws went into effect on August 1, 2024. These laws affect how sexual harassment and hostile work environment claims are handled in the workplace, which significantly impacts both employers and employees. Here’s what you need to know.
Act No. 541
You may recall signing an agreement consenting to resolve any future harassment disputes in arbitration as part of your employment contract. Act No. 541 prohibits such agreements. Under this new law, employers cannot require current or prospective employees to sign an agreement to resolve future sexual harassment disputes by arbitration. Such agreements can only be entered into after the misconduct has been reported.
Act No. 781
Act No. 781 renders nondisclosure agreements (NDAs) signed prior to the filing of a sexual harassment or hostile work environment dispute unenforceable, underscoring the importance of transparency in workplace disputes. This new law clearly defines the terms “hostile work environment,” “hostile work environment dispute,” “nondisclosure clause,” “sexual harassment,” “sexual harassment dispute” and asserts that agreements required by an employer and signed prior to the report of misconduct are not “judicially enforceable.” Just as with Act No. 541, Act No. 781 allows for the exception where parties may enter a confidential settlement agreement after the dispute has occurred.
Act No. 781 defines “Nondisclosure clause” as “an agreement between an employee and employer that prevents, or has the effect of preventing, an employee from disclosing or discussing a hostile work environment, allegations of a hostile work environment, sexual harassment, or allegations of sexual harassment.” This new law strengthens employee protections to block employers from preventing employees from discussing matters pertaining to sexual harassment and a hostile work environment.
Implications for Employers
These laws have significant implications for employers. Employers will need to review and revise their employment contracts and policies to ensure compliance with both of these new laws. Employers should also communicate how these changes impact their employees to ensure their employees are fully aware of changes to company policies and procedures for reporting sexual harassment and a hostile work environment.
If you need assistance navigating the process of revising your organization’s policies and contracts to ensure you are in compliance with these laws, contact us today!