Sec. 411. Secret settlements ban
339 words·~2 min read·
/bill/116/s/5070/is/section-411A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
In this section— the terms antitrust dispute , civil rights dispute , consumer dispute , and employment dispute have the meanings given those terms in section 401 of title 9, United States Code, as added by section 409 of this Act; the term covered agreement — means a contract or settlement agreement between a covered person and any other person relating to an antitrust dispute, civil rights dispute, consumer dispute, discrimination dispute, or employment dispute; and does not include a collective bargaining agreement between a covered person and the collective bargaining representative of the employees of the covered person; the term covered person means— an individual that is an employer; or a corporation, limited liability company, or other entity that is created by the filing of a public document with a secretary of state of a State or similar office, without regard to whether the entity is a for-profit or nonprofit entity or is an employer; and the term secret settlement provision means a provision in a covered agreement that has the purpose or effect of concealing the details of a claim relating to the antitrust dispute, civil rights dispute, consumer dispute, or employment dispute to which the covered agreement relates.
A secret settlement provision— shall be deemed against public policy; and shall have no force or effect. A covered agreement shall include a bold, prominently placed notice stating that any secret settlement provision in the covered agreement has no force or effect and is unenforceable against any person. In any civil action, if a covered person seeks to enforce a secret settlement provision, the court may award costs, including reasonable attorney's fees, to the person against whom the covered person seeks to enforce the secret settlement provision.
A covered person shall not take or threaten to take any personnel action against a current or former employee of the covered person based on whole or in part on a failure or refusal by the employee to sign or enter into a covered agreement that contains a secret settlement provision.