PROHIBIT NONDISCLOSURE & NONDISPARAGEMENT

HB0126

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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