Summary:

 Senate Bill 324 (SB 324) relates to employment. SB 324 prohibits nondisclosure and non-disparagement agreements. SB 324 amends a section of the NMSA 1978. 

Legislation Overview:

 Senate Bill 324 prohibits nondisclosure  and non-disparagement agreements. 
SECTION 1 in Employment amends the title to read:  Workplace Sexual Assault, Sexual Assault, Sexual Harassment, Sexual Discrimination and Sexual Retaliation Claims — Nondisclosure and Non-disparagement Agreements and Certain Actions Prohibited
Throughout this section, each subsection refers to a prospective current or former employee or independent contractor. This group of employees shall not be required to sign a nondisclosure or non-disparagement provision relating to actions listed in the title.
Subsection B allows a confidentiality provision if the provision relates to a monetary amount of settlement or at the employee’s request prohibits disclosure of factual information related to the the actions listed in the title that could lead to the identification of the employee. 
 Subsection C is rewritten and specifies that the provisions of this section shall not be construed to prevent disclosure of information if disclosure is required to be made in a judicial, administrative or other governmental proceeding.
Subsection D is amended to delete reference to Subsection B and Insert references to Subsection C.
Subsection E-H are inserted as follows:
E. In any civil action involving a claim of of any action listed in the title, a plaintiff may present evidence that the employer against whom the action was filed entered into one or more agreements that included a nondisclosure or non-disparagement clause involving the conduct of the same individual or individuals who are alleged to have engaged in the unlawful acts. Such evidence may be used in support of an award of punitive damages. 
F. With respect to a claim of any of the actions listed in the title, any nondisclosure clause or non-disparagement clause agreed to before the dispute arises shall not be judicially enforceable in instances in which conduct is alleged to have violated federal, tribal or state law. 
G. Notwithstanding any other provision of this section, at the election of the person alleging conduct constituting a as listed in the title, or the named representative of a class or in a collective action alleging such conduct, no pre-dispute arbitration agreement or pre-dispute joint-action waiver shall be valid or enforceable with respect to a case that is filed under federal, tribal or state law and relates to the actions listed in the title. 
H. The provisions of this section are to be liberally construed to fulfill their remedial purpose.
SECTION 2. APPLICABILITY.--The provisions of this act apply to agreements entered into between a private employer and a prospective, current or former employee or independent contractor on or after June 20, 2025. 

Current Law:

 Senate Bill 324 in employment amends Section 50-4-36 NMSA 1978 (being Laws 2020, Chapter 16, Section 1), which currently allows nondisclosure and non-disparagement agreements.