Shechtman Discusses Enforceability of NDAs Post-Weinstein
Ronald Shechtman, Managing Partner of Pryor Cashman and Chair of the firm’s Labor + Employment Group, recently spoke with Reuters about how the wave of sexual misconduct allegations in the United States has impacted the way lawyers view confidentiality agreements.
With more women and men coming forward to report instances of sexual harassment and abuse, settlement deals which contain non-disclosure agreements, or “NDAs,” are being criticized as unfairly barring victims from discussing past misconduct. In response, a growing number of lawmakers and advocacy groups are calling for NDAs to be abolished.
Lawyers who represent plaintiffs and defendants in harassment suits were once confident that NDAs, which are rarely breached, would be upheld by courts if challenged. But today, in the aftermath of allegations against Harvey Weinstein and other prominent figures, there is a real possibility that courts could void such agreements in favor of the public interest.
“I’d be surprised to find a lawyer who is confident in the enforceability of an NDA right now,” Shechtman told Reuters.
Weakening confidentiality would have consequences for accusers, too. For instance, without a promise of secrecy, settlements may become smaller. Confidentiality agreements, at least in some cases, may also prevent individuals accused of misconduct from falsely characterizing claims against them. Further, some accusers may want to maintain confidentiality just as much as the accused.
Critics of NDAs argue they enable serial harassers by keeping people who work for or with them in the dark about their behavior. Lawmakers in New York, California, Pennsylvania and New Jersey have proposed banning non-disclosure agreements in sexual harassment and other employment-related cases.
For the full Reuters article, please click here.
More About Shechtman’s Practice
Renowned for his expertise in labor and employment law, Ronald Shechtman has been named to The Best Lawyers in America, Human Resources Executive/Lawdragon’s “Employment Lawyers Hall of Fame” and was recently honored by the New York Law Journal as a “Distinguished Leader.” In addition to serving as the managing partner of Pryor Cashman, he maintains an active practice representing a broad range of clients, including the original cast of the Broadway megahit Hamilton in securing an unprecedented profit-sharing agreement with the show’s producers.
To learn more about his work, please visit here.
