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OntarioDid not become law (session ended)43rd Parliament, 1st Session

Bill 124 explained in plain English

Stopping the Misuse of Non-Disclosure Agreements Act, 2023

Ontario legislature bill summary, status, timeline, sponsor, votes, and official sources.

At a glance

Jurisdiction
Ontario Legislature
Legislature / Parliament
Legislative Assembly of Ontario
Session
43rd Parliament, 1st Session
Bill number
Bill 124
Full title
Stopping the Misuse of Non-Disclosure Agreements Act, 2023
Current status
Did not become law (session ended)
Latest event
Ordered for Second Reading
Last updated
Jun 6, 2023

Official Legislative Assembly of Ontario snapshot for 43rd Parliament, 1st Session. Representative vote breakdowns appear when the Assembly publishes an Ayes and Nays page for the bill.

Chamber
Legislative Assembly of Ontario
Current Stage
Ordered for Second Reading
Latest Activity
Jun 6, 2023
Plain-language explanation
In plain English (our explanation)

Our plain-language take, written for civic education.

Source: By PoliticalData.ca

AI-assisted, reviewed before publishing
Short Version

This Act restricts the use of non-disclosure agreements in Ontario to prevent the concealment of details related to discrimination, harassment, sexual harassment, and sexual assault.

What It Means

This bill, the Stopping the Misuse of Non-Disclosure Agreements Act, 2023, aims to prevent non-disclosure agreements (NDAs) from being used to hide details about discrimination, harassment, sexual harassment, or sexual assault. It sets rules for when NDAs can be used in these situations, who they can be used with, and what they must include to be valid. It also creates an exception for situations where the person experiencing the issue explicitly wants to enter into such an agreement. The Act also prohibits separate NDAs intended to block investigations into harassment or discrimination complaints and establishes penalties for violations.

What This Bill Does
  • Prohibits parties responsible for preventing discrimination, harassment, sexual harassment, or sexual assault from entering into non-disclosure agreements (NDAs) that conceal details of such incidents.
  • Allows for NDAs in these situations only if it is the expressed wish of the person who experienced or alleged the incident.
  • Sets conditions for the enforceability of NDAs, including requiring independent legal advice, preventing undue influence, ensuring they do not harm third parties or the public interest, allowing for future waiver of confidentiality, and setting a limited duration.
  • Specifies disclosures that are not covered by NDAs, such as those required by law, artistic expression that does not identify parties or the NDA terms, and communications with specific individuals like law enforcement, legal professionals, medical practitioners, and support persons.
  • Prohibits separate NDAs intended to prevent lawful investigations into harassment or discrimination complaints.
  • States that NDAs not complying with the Act's requirements are legally ineffective.
  • Clarifies that NDAs can still prevent the disclosure of the amount paid in a settlement.
  • Makes existing agreements subject to certain provisions regarding disclosures.
  • Establishes penalties for entering into non-compliant NDAs after the Act comes into force.
  • Allows the Lieutenant Governor in Council to make regulations to define terms and carry out the Act's purpose.
Who Is Affected
  • Individuals or entities who have an obligation to prevent discrimination, harassment, sexual harassment, or sexual assault in a workplace or similar setting ('party responsible').
  • Individuals who have experienced or made allegations of discrimination, harassment, sexual harassment, or sexual assault ('relevant person').
  • Individuals who committed or are alleged to have committed discrimination, harassment, sexual harassment, or sexual assault.
  • Legal professionals, law enforcement, medical practitioners, and other specified individuals who may receive disclosures.
  • Prospective employers who may receive information about a candidate's employment history.
Rights, Duties, Or Obligations
  • The right of a relevant person to expressly wish to enter into an NDA, subject to conditions.
  • The obligation of a 'party responsible' not to enter into an NDA that conceals details of protected incidents.
  • The obligation not to enter into separate NDAs to prevent investigations.
  • The requirement for NDAs to be enforceable only if certain conditions are met, including opportunities for legal advice and waiving confidentiality in the future.
  • The right to disclose information protected or required by specific Acts, or to communicate with certain professionals and support persons.
Important Dates
  • The Act comes into force on the day it receives Royal Assent.
Financial Or Tax Impacts
  • Fines for non-compliance: $10,000 for individuals, and between $10,000 and $50,000 for corporations.
  • Settlement agreements may still preclude the disclosure of the amount paid.
Enforcement Or Penalties
  • Non-compliant non-disclosure agreements are of no legal effect.
  • Penalties for entering into a non-compliant NDA include summary conviction fines: $10,000 for an individual, and not less than $10,000 and not more than $50,000 for a corporation.
Uncertainties Or Limits
  • The definition of 'party responsible' and 'relevant person' may require further clarification through regulations.
  • The specific 'prescribed persons or classes of persons' for disclosures are not yet defined and will be established by regulation.
  • The exact meaning of 'undue attempts to influence' in the context of entering an agreement is not detailed.
  • The scope of 'artistic expression' that does not identify parties or NDA terms needs interpretation.
  • The application of existing agreements to new provisions is subject to 'necessary modifications'.
Laws Or Regulations Affected
Employment Standards Act, 2000
amended

Disclosures protected or required under this Act are not restricted by non-disclosure agreements made under this new Act.

Source: Section 2 (4) (a) (i)

Human Rights Code
amended

Disclosures protected or required under this Act are not restricted by non-disclosure agreements made under this new Act.

Source: Section 2 (4) (a) (ii)

Occupational Health and Safety Act
amended

Disclosures protected or required under this Act are not restricted by non-disclosure agreements made under this new Act.

Source: Section 2 (4) (a) (iii)

Psychology Act, 1991
amended

Communications with psychologists or psychological associates are permitted and not restricted by non-disclosure agreements made under this new Act.

Source: Section 2 (4) (c) (iv)

The Stopping the Misuse of Non-Disclosure Agreements Act, 2023
created

This Act establishes rules and prohibitions regarding the use of non-disclosure agreements in cases of discrimination, harassment, sexual harassment, and sexual assault.

Source: Preamble and Section 1

Generated using AI from official bill text. Not legal advice. It is written by PoliticalData.ca for civic education, automatically checked and spot-reviewed before publishing.

Official text

Process Snapshot

Step 1
First reading
Jun 6, 2023
Step 2
Second reading
Date not listed
Step 3
Committee review
Not reached yet
Step 4
Third reading
Not reached yet
Step 5
Royal assent
Not reached yet

Vote Summary

No published recorded division

This bill is still active. We only show vote counts after the legislature publishes a recorded division.

Sponsor
Kristyn Wong-Tam
New Democratic Party of Ontario | Toronto Centre
Jurisdiction
Ontario Legislature

No published representative vote breakdown

This bill is still moving through the process. When a recorded division is published, representative positions can be listed here.

Official sources

Status, sponsor, votes, and timeline on this page are drawn from these official legislative sources and public records. Each summary above is attributed to its own source.

How this data is sourced