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Vermont Employee and Severance NDA

Draft a Vermont employee or severance NDA under 21 V.S.A. 495h, with the express sexual-harassment carve-out the state requires in settlement agreements.

Introduction

A Vermont employee NDA is a confidentiality agreement between a company and a worker that protects the employer's trade secrets and confidential business information. A severance NDA is the version signed at separation, usually inside a release agreement, and it often keeps the terms of the exit private. It differs from a commercial NDA between two businesses because a worker signs it and cannot be gagged about unlawful conduct. In Vermont, 21 V.S.A. Section 495h bars an employer from requiring a worker, as a condition of employment, to sign an agreement restricting reports of sexual harassment; any such provision is void. It also requires that an agreement settling a sexual harassment claim state the worker may lodge a complaint with the Attorney General, the Human Rights Commission, the EEOC, or another agency. DocDraft drafts a Vermont employee or severance NDA from your facts, with the mandatory carve-out language built in, and attorney review is available before anyone signs.

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Key Things to Know

  1. 1

    Vermont's 21 V.S.A. 495h bars condition-of-employment gags on sexual harassment. An onboarding agreement cannot stop a worker from opposing, disclosing, reporting, or participating in an investigation of sexual harassment, and any such provision is void.

  2. 2

    Vermont mandates express carve-out language in settlements. An agreement settling a sexual harassment claim must expressly state that it does not restrict the worker from lodging a complaint with an agency.

  3. 3

    The required language names specific agencies. The carve-out must cover complaints to the Attorney General, a State's Attorney, the Human Rights Commission, the Equal Employment Opportunity Commission, or any other state or federal agency.

  4. 4

    The scope is sexual harassment. Vermont's restriction centers on sexual harassment rather than the full range of unlawful workplace conduct.

  5. 5

    Both onboarding and severance agreements are covered. The condition-of-employment ban and the settlement carve-out requirement each apply under section 495h.

  6. 6

    Trade secrets stay protectable. Vermont law still lets an NDA protect client lists, pricing, processes, and other genuine confidential business information.

  7. 7

    The federal floor applies on top. The Speak Out Act and the non-waivable right to report to the EEOC, the NLRB, and the SEC still limit any Vermont NDA.

Key decisions before you file

Before you file a Employee and Severance NDA in Vermont, a few decisions shape the document: which option to choose and what each one means. The Employee and Severance NDA guide walks through them.

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Vermont Requirements for Employee and Severance NDA

  • Vermont 21 V.S.A. Section 495h

    Draft a Vermont employee or severance NDA under 21 V.S.A. 495h, with the express sexual-harassment carve-out the state requires in settlement agreements.

Frequently Asked Questions