Can’t Buy Silence Act

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At second reading in the Senate

S-261
May 9, 2023 (2 years ago)
Canadian Federal
Marilou McPhedran
Senate
Third reading
0 Votes
Full Title: An Act respecting non-disclosure agreements
Social Issues
Labor and Employment

Summary

The "Can't Buy Silence Act" introduces new reporting requirements for federal public sector entities regarding non-disclosure agreements (NDAs). This law aims to increase transparency in the use of public funds, especially in cases related to harassment and discrimination claims. It prohibits the use of public funds for NDAs that silence victims and mandates that complainants receive independent legal advice before entering into such agreements.

What it means for you

Groups that may be impacted include federal employees who have experienced harassment or discrimination, advocates for workplace safety and transparency, and organizations reliant on government funding. Complainants could feel more empowered to speak out about their experiences, while public sector entities could face increased scrutiny and oversight.

Expenses

Entities will incur costs related to compliance with the new reporting requirements, which might involve additional administrative staff or legal resources. The bill also specifies that public funds cannot be used to litigate NDAs, possibly leading to savings on legal expenses but may also prompt organizations to seek alternative funding sources to cover the costs of mandated legal advice for complainants, potentially reducing financial resources available for other essential services.

Proponents view

Supporters argue that the bill promotes accountability and helps create a safer workplace by preventing organizations from silencing victims of harassment. They believe that by mandating independent legal counsel, the law ensures that complainants are fully informed about their options. This transparency is seen as a step toward safeguarding public funds from misuse in legal settlements.

Opponents view

Critics contend that the law could create a heavy administrative burden on public entities, leading to increased costs and divesting funds from critical services. They warn that the requirement for independent legal advice could complicate processes and deter victims from pursuing claims due to fears about privacy violations. Additionally, the 60-day implementation timeline may not be sufficient for organizations to adjust their practices, leading to compliance issues and potential litigation costs for misaligned previous NDAs.

Overall, while the "Can't Buy Silence Act" seeks to protect whistleblowers and enhance transparency in the federal workplace, it raises substantial financial and operational concerns that merit thorough consideration from both supporters and detractors.

Original Bill