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Ontario Assembly Bill

Ontario Bill 124

43rd Parl. 1st Sess.
June 06, 2023
Stopping the Misuse of Non-Disclosure Agreements Act, 2023
  • This is a law called Bill 124, which was enacted in 2023 in the province of Ontario. It regulates the use of non-disclosure agreements in cases of discrimination, harassment, sexual harassment, and sexual assault. The law states that no one responsible for these actions or accused of them can enter into a non-disclosure agreement that hides the details of a complaint. However, there is an exception if the person who experienced the discrimination or assault wishes to enter into such an agreement. In that case, certain requirements must be met, such as the person receiving independent legal advice and the agreement not adversely affecting the health and safety of others or the public interest. The law also specifies that the agreement cannot apply to certain situations, such as disclosures required by other laws or communications with certain professionals. It is also prohibited for the responsible party to enter into a separate non-disclosure agreement with the person accused of the discrimination or assault to prevent an investigation. Non-compliance with the law renders the non-disclosure agreement invalid. The law also includes provisions regarding non-disparagement agreements and the non-disclosure of settlement amounts. Existing agreements are subject to certain modifications. Violation of the law is considered an offense, with fines imposed on individuals and corporations. The Lieutenant Governor in Council has the authority to make regulations related to the law. The law came into effect on the day it received Royal Assent and is known as the Stopping the Misuse of Non-Disclosure Agreements Act, 2023.
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SteelmanSpren in Favour

  • A steelman argument in favor of Bill 124 2023, the Stopping the Misuse of Non-Disclosure Agreements Act, can be made as follows: 1. Protecting victims: The Act aims to regulate the use of non-disclosure agreements (NDAs) in cases of discrimination, harassment, sexual harassment, and sexual assault. By limiting the use of NDAs, the Act ensures that victims are not silenced or prevented from speaking out about their experiences. This promotes transparency and accountability, allowing victims to share their stories and potentially seek justice. 2. Encouraging reporting: By prohibiting NDAs that conceal the details of complaints, the Act encourages victims to come forward and report incidents of discrimination, harassment, sexual harassment, or sexual assault. Victims may feel more empowered to speak up knowing that they are not bound by an NDA that prevents them from discussing their experiences. This can lead to increased reporting, which is crucial for addressing and preventing such incidents. 3. Informed consent: The Act requires that any NDA entered into with a victim must be the expressed wish and preference of the victim. This ensures that victims have agency in deciding whether or not to enter into an NDA. Additionally, the Act mandates that victims have a reasonable opportunity to receive independent legal advice before signing an NDA. This promotes informed consent and protects victims from being coerced or manipulated into signing agreements that may not be in their best interest. 4. Safeguarding public interest: The Act specifies that an NDA cannot adversely affect the health or safety of a third party or the public interest. This provision ensures that agreements cannot be used to cover up systemic issues or protect individuals who pose a risk to others. By prioritizing public interest, the Act helps prevent the misuse of NDAs to shield wrongdoers or perpetuate harmful behaviors. 5. Limited duration and waiver option: The Act requires that any NDA be of a set and limited duration. This prevents indefinite silencing of victims and ensures that agreements do not impede their ability to share their experiences in the future. Additionally, the Act mandates that NDAs include an opportunity for the victim to decide to waive their own confidentiality in the future and outlines the process for doing so. This provision allows victims to regain control over their stories and share them if they choose to do so. Overall, the Stopping the Misuse of Non-Disclosure Agreements Act aims to strike a balance between protecting victims and promoting transparency while still recognizing

SteelmanSpren Against

  • Steelman Argument Opposing Bill 124 2023: Bill 124 2023, also known as the Stopping the Misuse of Non-Disclosure Agreements Act, may seem well-intentioned, but it is an unnecessary government overreach that interferes with the freedom of contract and imposes burdensome regulations on businesses. This bill undermines the principles of personal responsibility and limited government that are central to conservative ideology. Firstly, this bill restricts the ability of parties involved in discrimination, harassment, sexual harassment, or sexual assault cases to enter into non-disclosure agreements. While it is important to address and prevent such misconduct, it is equally important to respect the rights of individuals to negotiate agreements that suit their specific circumstances. By prohibiting non-disclosure agreements, the government is interfering with the autonomy of individuals and businesses to resolve disputes privately and efficiently. Furthermore, the bill imposes strict requirements for the enforceability of non-disclosure agreements, including the need for independent legal advice, limitations on the duration of the agreement, and the inclusion of a waiver of confidentiality. These requirements create unnecessary bureaucratic hurdles and increase the costs and complexities of legal proceedings. They also undermine the principle of freedom of contract, as parties should be able to negotiate the terms of their agreements without government interference. Additionally, the bill criminalizes non-compliance with its provisions, imposing fines on individuals and corporations who enter into non-disclosure agreements that do not meet the government's standards. This heavy-handed approach is unnecessary and disproportionate, as it treats individuals and businesses as potential criminals for engaging in voluntary contractual arrangements. It is not the role of the government to dictate the terms of private agreements or to punish individuals for exercising their freedom of contract. Moreover, the bill fails to consider the potential negative consequences for businesses and individuals. Non-disclosure agreements can be an effective tool for protecting the reputation and privacy of individuals involved in sensitive legal matters. By restricting the use of these agreements, the bill may discourage victims from coming forward, as they may fear public exposure and potential retaliation. This could undermine the goal of addressing and preventing discrimination, harassment, sexual harassment, and sexual assault. In conclusion, Bill 124 2023 is an example of government overreach that interferes with personal freedom, limits the autonomy of individuals and businesses, and imposes unnecessary regulations and penalties. Conservatives believe in limited government intervention and the importance of personal responsibility. This bill undermines these principles and should be opposed in favor of a more balanced approach that respects individual rights
First Reading
  • June 6, 2023, noon
  • In Progress
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