Overview

In 2019, Alabama enacted Senate Bill 30 (“SB30”), commonly referred to as “Trey’s Law.” Trey’s Law places significant limitations on confidentiality provisions in settlement agreements arising from claims of sexual abuse, as defined by certain Alabama laws, regardless of whether the conduct led to a criminal charge, conviction, adjudication, or sentence. The legislation reflects a broader national movement to increase transparency around workplace misconduct and prevent contractual agreements from controlling the discussions surrounding sexual harassment, assault, or abuse.

Specifically, Trey’s Law makes any provisions contained in non-disclosure agreements (NDAs), confidentiality agreements, employment agreements, settlement agreements, or any other type of agreement prohibiting an individual or entity from disclosing an act of sexual abuse or facts related to such act void and unenforceable. The law applies to settlement agreements entered into on or after October 1, 2026.

Practical Effect

Given that it has not yet taken effect, there is little guidance on its overall impact. However, it will be a key consideration for employers when drafting and entering settlement agreements related to sexual abuse, harassment, and/or misconduct that occurs in the workplace. Employers’ key takeaways include:

• Narrowed confidentiality clauses. Broad disclosure provisions that would prevent a claimant from discussing the factual basis of the claim are unenforceable under the statute. Settlement agreements must be tailored to distinguish between the facts of the misconduct (which cannot be restricted) and the financial terms (which may be kept confidential).
• No retaliation for disclosure. The law prohibits retaliation against individuals who disclose information they are permitted to share under the statute, adding an additional layer of protection for complainants.
• Consideration during negotiations. Because confidentiality can no longer be offered as a blanket term, parties on both sides may need to recalibrate how they approach settlement value and structure.

Similar Laws

Trey’s Law is part of a growing national trend. Numerous states—including California, New York, New Jersey, Washington State, and Utah—have enacted their own laws restricting how NDAs can be used in workplace settlement agreements. The laws vary by approach and scope, but each evidence a growing trend to limit the extent to which employers can contractually limit the disclosure surrounding claims of sexual abuse, harassment, and/or misconduct.