Back to Bills

Ban Secret NDAs in Harassment Settlements

Full Title:
Non-disclosure Agreements Act

Summary#

  • This bill limits how non-disclosure agreements (NDAs) can be used in cases of harassment or discrimination in Nova Scotia.

  • Its main goal is to stop NDAs from hiding harmful behaviour, while still letting a survivor choose privacy if they want it.

  • NDAs in harassment or discrimination cases are only allowed if the person who experienced it asks for one.

  • Any allowed NDA must be time-limited, in plain language, and include a simple way for the survivor to end their own confidentiality later.

  • NDAs cannot block someone from reporting to authorities, talking to a lawyer or health professional, or getting support.

  • Survivors can tell a future employer that they had a settlement and an NDA, without sharing the details of the incident.

  • “Non-disparagement” clauses (promises not to say anything negative) are treated the same as NDAs if they hide details of harassment or discrimination.

  • Fines apply if someone uses an NDA that does not follow these rules. The law takes effect January 1, 2026, or earlier if the government sets an earlier date.

What it means for you#

  • Workers, students, tenants, or others who face harassment or discrimination

    • You cannot be forced to sign an NDA to settle your complaint.
    • An NDA is only valid if you wanted it, had a fair chance to get your own legal advice, and were not pressured.
    • Any NDA must be for a set period of time. It cannot be open-ended forever.
    • You keep the right to talk to:
      • Police or regulators, a lawyer, a doctor, a psychologist, a nurse, a social worker, victim services, the Ombudsman, a community elder or spiritual counsellor, and certain friends or family listed in the NDA.
    • You can later choose to waive (end) your own confidentiality using the process set out in the NDA.
    • You may tell a prospective employer that you reached a settlement and that it included an NDA, as long as you do not share the incident details.
    • NDAs cannot be enforced if they would harm public health or safety or the public interest.
    • Older NDAs (signed before this law) no longer block the permitted disclosures listed above.

  • Employers and organizations with a duty to prevent harassment or discrimination (for example, workplaces or other settings where it occurred)

    • You may use an NDA only if the survivor asks for it and all safeguards are met.
    • The NDA must be in plain language, time-limited, allow the survivor to end their own confidentiality later, and cannot restrict the allowed disclosures.
    • You cannot make a separate NDA with the alleged harasser to stop a lawful investigation.
    • You may still keep the dollar amount of a settlement confidential.
    • Using a non-compliant NDA can lead to fines between $2,000 and $10,000.

  • People accused of harassment or discrimination

    • You cannot use an NDA or non-disparagement clause to silence a complainant.
    • If there is an NDA, it must still allow reports to authorities and communications with legal and health supports.
    • Investigations by lawful authorities can continue; NDAs cannot be used to block them.

  • Friends, family, and supporters

    • A survivor may share information with you if you are named in the NDA as an approved personal supporter.

  • Health and support professionals

    • Communications with you are protected. An NDA cannot block a survivor from speaking with you.

Expenses#

No publicly available information.

Proponents' View#

  • Puts control in the survivor’s hands and helps prevent pressure to stay silent.
  • Limits secret settlements that can hide repeat offenders and ongoing risks to others.
  • Still allows privacy when a survivor wants it, including keeping settlement amounts confidential.
  • Clear “safe to share” rules reduce fear of breaking an NDA when seeking help or reporting.
  • Time limits and a right to waive later stop lifelong gag orders.
  • Helps protect public safety and trust by preventing NDAs that would harm the public interest.

Opponents' View#

  • Could make settlements harder to reach because some parties rely on confidentiality, leading to longer disputes and higher costs.
  • Creates compliance steps (plain language, time limits, waiver process) that may be complex for small organizations.
  • Risk of reputational harm from public allegations that have not been tested in court or by a tribunal.
  • Uncertainty about what counts as “undue influence” or when an NDA affects the public interest may lead to legal disputes.
  • May increase insurance or legal costs for employers as they adjust policies and training.