§ 8-1-224 — Liability for Breach of Non-disparagement Obligation

In order to be enforceable, a covered contract shall state in writing that the obligated party may not be held liable for breach of the non-disparagement obligation if the obligated party makes an otherwise disparaging statement in good faith and solely for any of the following purposes:
(1) To communicate with a law enforcement officer acting within the line and scope of the officer’s law enforcement duties that a violation of the law has occurred or is occurring.
(2) To communicate with a government regulator acting within the line and scope of the regulator’s regulatory duties that a violation of the law has occurred or is occurring.
(3) To respond to a lawfully served judicial, grand jury, or other lawful subpoena.
(4) To testify in a judicial or administrative proceeding in response to a lawfully served subpoena or an order of a court of competent jurisdiction.
(5) To confer with the obligated party’s attorney for the purpose of obtaining legal advice or representation.
(6) To respond to lawful discovery in a judicial or administrative action; provided the disparaging statement is either ordered by a court of competent jurisdiction or made in compliance with a protective order entered by the same court.
(7) To prosecute or defend a civil action between or among parties to a covered contract; provided the party making the disparaging statement attempts to and, if permitted by law, does file the disparaging statement and any related pleading under seal or in compliance with a protective order entered by a court of competent jurisdiction in the civil action.
(8) To exercise federally protected statutory rights, including, but not limited to, the exercise of rights under the National Labor Relations Act or the Civil Rights Act of 1964, as amended.

Legislative History

(Act 2021-503, §5.)