Taking Care of HR Business
        A blog from the attorneys of Verrill

        Nondisclosure Provisions in Maine: Are Your Agreements Compliant?

        by Elizabeth T. Johnston on January 31, 2023

        In late 2022, a new Maine law took effect restricting the use and reach of nondisclosure provisions in Maine employment agreements. The new law, Nondisclosure Agreements in Employment, 26 M.R.S. § 599-C, is one of the most recent of similar state laws to be enacted that restrict an employer’s ability to limit an employee’s disclosures about claims of employment discrimination.

        What Does the New Law Provide?

        First, Section 599-C prohibits employers from entering into agreements with employees, interns, or applicants when the agreement waives, or in effect waives or limits, the worker’s right to report or discuss unlawful employment discrimination. The statute adopts the definition of unlawful employment discrimination from the Maine Human Rights Act, which includes discrimination on the basis of any protected characteristic, including race, color, sex, sexual orientation or gender identity, physical or mental disability, religion, age, ancestry, national origin, or familial status. The statute further specifies that workers must be protected in reporting or discussing discrimination or harassment at work or work-related events.

        Second, Section 599-C prohibits employers from requiring an employee, intern, or applicant from entering into a settlement, separation, or severance agreement that limits the right to report, testify, or provide evidence to a federal or state agency that enforces employment or discrimination laws, prevents an individual from testifying or providing evidence in court proceedings in response to legal process, or prohibits reporting to a law enforcement agency.

        Finally, Section 599-C provides that a settlement, separation, or severance agreement that includes a provision preventing disclosure of factual circumstances of a claim of unlawful employment discrimination must meet several discrete requirements: (a) it must contain separate monetary consideration for the provision in addition to anything the employee is already entitled to; (b) it must apply to all parties to the agreement; (c) it must clearly provide for the individual’s right to report, testify, or provide evidence to agencies that enforce employment and discrimination laws and testify and provide evidence in court proceedings; and (d) the employer must retain a copy of the agreement for six years following execution of the agreement or termination of the employment relationship, whichever is later, and keep it accessible for Department of Labor inspection.

        How Will This Affect My Agreements?

        Employers should consider how this new law impacts various types of employment agreements in their repertoire and make revisions to comply with Section 599-C:

        • Nondisclosure/confidentiality provisions in offer letters or employment agreements: Given the breadth of Section 599-C, a standard confidentiality provision included in an offer letter or employment agreement could be interpreted to limit a worker’s rights under the statute. Confidentiality or nondisclosure provisions included as part of an offer letter or employment agreement should be amended to clearly state that the agreement does not prohibit workers from discussing or reporting prospective discrimination or harassment, regardless of whether the alleged conduct occurs at work or at a work-related event.
        • Separation, severance, and settlement agreements: As noted above, Section 599-C expressly prohibits certain nondisclosure elements in separation, severance, and settlement agreements. Where the law and its implementation are still new, a best practice is to include specific carve-outs for permitted activity (as stated in the statute) in any nondisclosure or similar provisions.
          • Provisions restricting disclosure of underlying factual circumstances: If you choose to include a restriction on the disclosure of factual circumstances underlying a discrimination claim, ensure all statutory prerequisites are met, including that appropriate consideration is provided and records are maintained according to the time period specified in the statute.
        • Other considerations:
          • For any agreement, keep in mind that a restriction need not be expressly classified as a “nondisclosure” provision to be covered by the new law. The substance of a provision is the determining factor. Employers should specifically review any non-disparagement provisions to make sure they are compliant with Section 599-C, as well.
          • Consider what other laws may apply to an agreement. For example, the Speak Out Act will apply to nondisclosure and non-disparagement provisions in pre-dispute employment agreements (read more about the Speak Out Act here). In addition, a Maine employment agreement with noncompetition provisions will also need to comply with Maine’s law governing use of noncompetes.

        It is always advisable to consult counsel regarding any employment agreements. For more information on Section 599-C, feel free to contact Liz Johnston or another member of Verrill’s Employment & Labor Group.

        Taking Care of HR Business

        Human resource professionals, supervisors, and company executives are constantly confronted with a changing legal landscape. Verrill’s Taking Care of HR Business blog is designed to keep you informed about the latest and most significant legal developments that affect employers.

        Key Contact

        Subscribe

        Looking for more great content? Subscribe for regular legal updates and information delivered right to your inbox.

        Firm Highlights

        Media Mentions

        Robert Keach Quoted in Law360 on SIMAD Summer Camp Bankruptcy Sale

        Verrill attorney Robert Keach was recently quoted in a Law360 article examining the Chapter 11 bankruptcy proceedings involving SIMAD Holdings and...
        Media Mentions

        Chris Tsouros Featured in Law360’s Coverage of Sports Real Estate Deals

        Verrill Partner Chris Tsouros was recently recognized in a Law360 article highlighting law firms involved in significant sports real estate projects...
        Blog

        What Maine’s New Employer Surveillance Law Means for Maine Employers

        Maine employers who monitor their workforce, whether through productivity software, GPS, call recording, or cameras, have a new compliance obligation...
        Blog

        Run Don’t Walk: The Implication of “While Supplies Last” Prize Promotions

        This month a big-chain grocery store has been offering daily mystery boxes during specific timed drops on a first-come, first-served basis, to users...
        Blog

        Maine’s Noncompete Statute is Reshaped for Health Care Workers: What You Need to Know

        Employers of individuals who are licensed under state law to perform, or provide, health care services in the State of Maine should be prepared for...
        Media Mentions

        Steven Davis Featured in the Environmental Business Journal

        Steven Davis, President of Verrill Strategic Consulting, was recently interviewed and featured in the Environmental Business Journal, Volume 39...
        Blog

        What is a Bonus for Purposes of ERISA?

        An ongoing dispute about a Department of Labor advisory opinion published last September raises a basic but unanswered question under the ERISA: What...
        Media Mentions

        Verrill Recognized by WMTW for Partnership Supporting Hunger Relief in Maine

        Verrill was recently featured in coverage by WMTW News 8 for its role in a collaborative effort to combat food insecurity across southern...
        Press Releases

        33 Verrill Attorneys, Across Four Offices, Recognized in the 2026 Chambers USA Guide

        BOSTON, Massachusetts, PORTLAND, Maine, WESTPORT, Connecticut, and WASHINGTON, D.C. – Verrill has been recognized as a Leading Firm in 14...
        Blog

        Will the Knicks Beat the Spurs? (Are Prediction Market Event Contracts Gambling?)

        For those of you who like to keep score, currently 18 states are engaged in litigation over prediction markets, such as Kalshi and Polymarket,...
        Alerts and Newsletters

        DOJ Announces Faster Review and Enhanced Enforcement for Benefits-Fraud FCA Matters

        On May 27, 2026, the U.S. Department of Justice (DOJ) Civil Division issued a new memorandum, “Accelerating Review and Enhancing Enforcement in...
        Alerts and Newsletters

        DOJ Announces Minnesota Health Care Fraud Takedown; Signals Intensified Medicaid Enforcement Nationwide

        On May 21, the Department of Justice (“DOJ”) announced a first-of-its kind Minnesota Health Care Fraud Takedown charging 15 defendants, including...