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In an effort to discourage the use of nondisclosure agreements, New Jersey Senator Robert Menendez Sexual harassment settlement amounts a provision that penalizes perpetrators by taking away the tax incentive settlemment their businesses to pay their legal settlment and settlements in such cases. As a result, Sedual provision may hurt Sexual harassment settlement amounts victim as well, who will be unable to deduct legal fees from the settlement amount received. Employers can defend themselves by showing they tried to prevent and correct any sexually harassing behavior and that the employee unreasonably failed to take advantage of any preventive or corrective opportunities provided by the employer or to avoid harm otherwise, Katz said.
Critics of stripping this choice from the parties contend that the unimpaired right to include nondisclosure agreements in sexual harassment settlements results in faster and higher settlements and respects the preference of the accused and, in many cases, the accuser for the matter to remain private.
But federal and state lawmakers should consider that fully before proceeding further in this direction. On the high haraszment of five digits, it could be a hefty payout that equates to a silent acknowledgment of wrongdoing, she said. The confidentiality clause is also an attractive near-guarantee that the matter will stay secret, unless someone is subpoenaed to discuss the terms in a court of law or before a congressional committee, she said.
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