205ProvincialJustice
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Non-Disclosure Agreements Act

Chamber

Alberta

Stage

Introduced

This Alberta bill bans non-disclosure agreements that silence victims of sexual misconduct or exploitation in settlement deals.

Key Changes

  • Bans NDAs that prevent victims of sexual misconduct or exploitation from disclosing what happened to them
  • Makes any existing or future NDA that silences a sexual misconduct victim automatically void and unenforceable
  • Prohibits employers and responsible parties from making deals that block complaints or investigations under workplace and human rights laws
  • Sets fines of $2,000–$10,000 for individuals and $10,000–$50,000 for organizations that violate the ban
  • Holds corporate officers and directors personally liable if their company breaks the law
  • Updates Alberta's Protection of Sexually Exploited Children Act with a broader definition of child sexual exploitation

Gotchas

  • The bill voids existing NDAs retroactively — meaning agreements already signed before this law comes into force can no longer be used to silence victims, even if both parties agreed to them at the time
  • Non-disparagement clauses (which stop someone from saying negative things about another person) are treated as NDAs if their effect is to conceal sexual misconduct, which is a broader reach than typical NDA legislation
  • The bill does not appear to prevent victims from voluntarily choosing to keep their own information private — it only restricts the respondent (accused party or employer) from requiring silence as a condition of settlement
  • The update to the child sexual exploitation definition in a separate existing law is embedded in this bill, which may not be obvious from the bill's title
  • The bill requires a formal legislative review every five years starting in 2031, building in a mechanism to assess and update the law over time

Who's Affected

  • Victims of sexual misconduct or sexual exploitation who have signed or are offered NDAs
  • Employers and organizations that have used or plan to use NDAs in sexual misconduct settlements
  • Individuals accused of sexual misconduct who seek to use NDAs in settlements
  • Lawyers and HR professionals who draft settlement agreements
  • Children who are victims of sexual exploitation under Alberta law

Summary

This bill makes it illegal in Alberta for someone accused of sexual misconduct or sexual exploitation (or their employer) to use a non-disclosure agreement (NDA) to stop a victim from talking about what happened to them. Any NDA that tries to do this — including 'non-disparagement' clauses that are really just a way to keep victims quiet — would be automatically void and unenforceable. The bill also applies to NDAs that were already signed before this law came into force, meaning old agreements that silence victims can no longer be enforced. The bill also prevents employers or other responsible parties from making deals with the person who committed the misconduct that would stop anyone from filing a complaint or taking part in an investigation under Alberta or federal workplace and human rights laws. Individuals who break these rules can be fined between $2,000 and $10,000, and companies can be fined between $10,000 and $50,000. Corporate officers and directors can also be personally charged. The bill was introduced to protect victims of sexual misconduct and exploitation by making sure they cannot be legally silenced as part of a financial settlement. It also updates the definition of 'sexual exploitation' of children in an existing Alberta law to include a broader range of situations where children are coerced or lured into sexual acts in exchange for things like money, food, shelter, or affection.

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