HOUSE BILL 126

57th legislature - STATE OF NEW MEXICO - second session, 2026

INTRODUCED BY

Reena Szczepanski and Dayan Hochman-Vigil

 

 

 

 

 

AN ACT

RELATING TO EMPLOYMENT; PROHIBITING NONDISCLOSURE AND NONDISPARAGEMENT AGREEMENTS; AMENDING A SECTION OF THE NMSA 1978.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     SECTION 1. Section 50-4-36 NMSA 1978 (being Laws 2020, Chapter 16, Section 1) is amended to read:

     "50-4-36. WORKPLACE SEXUAL HARASSMENT, DISCRIMINATION AND RETALIATION CLAIMS--NONDISCLOSURE AND NONDISPARAGEMENT AGREEMENTS [AND]--CERTAIN ACTIONS PROHIBITED.--

          A. A private employer shall not: [as a term of employment]

                (1) require [an] a prospective, current or former employee or an independent contractor to sign a nondisclosure or nondisparagement provision of a settlement agreement relating to a claim of sexual harassment, discrimination or retaliation in the workplace brought by the employee; or

                (2) prevent the employee from disclosing a claim of sexual harassment, discrimination or retaliation [occurring].

          B. A claim of sexual harassment, discrimination or retaliation may have occurred:

                (1) in the workplace or at a work-related event coordinated by or through the employer; or

                (2) between employees or between an employer and an employee, whether occurring on or off the employment premises.

          [B.] C. This section does not prohibit a settlement agreement between [an employee or former employee] a prospective, current or former employee or an independent contractor and a private employer alleging sexual harassment, discrimination or retaliation from containing confidentiality provisions. A confidentiality provision is only permitted [when] to pertain to:

                (1) [it relates to] the monetary amount of a settlement; or

                (2) at the prospective, current or former employee's or independent contractor's request, [it prohibits] the disclosure of facts that could lead to the identification of the employee or independent contractor.

          [C. At the sole request of the employee, a settlement agreement subject to this section may contain a confidentiality provision that prevents the disclosure of factual information related to the underlying sexual harassment, discrimination or retaliation claim.]

          D. The provisions of this [subsection] section shall not be construed to prevent disclosure of information that is the subject of the confidentiality provision if disclosure is required to be made in a judicial, administrative or other governmental proceeding pursuant to a valid subpoena or other applicable order as otherwise required by law.

          [D.] E. Except as provided in Subsections [B and] C and D of this section, a confidentiality provision in a settlement agreement subject to this section is void and unenforceable as a matter of law."

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