Yes, in most cases, Kentucky has no statute that voids confidentiality clauses in employment settlements. A bill that would have changed this for sexual abuse claims died without a committee hearing when the 2026 session ended in April, but what your employer can still demand has limits. Several of these come from federal law and apply even if the agreement does not mention them.
What a Settlement NDA Typically Covers
Most settlement confidentiality clauses in Kentucky cover the amount and terms of the deal. Broader versions also prohibit you from discussing the underlying facts, naming the people involved, or saying anything negative about the company.
This broader version is where negotiation takes place. Employers usually accept carve-outs for spouses, attorneys, and tax advisers, and many agree to mutual non-disclosure so the company is also bound.
Rights No Kentucky Settlement Can Waive
- Filing a charge with the EEOC or the Kentucky Commission on Human Rights, or cooperating with an investigation. The EEOC’s guidance on waivers is explicit: you can give up the right to recover money from a future charge, but not the right to file one or to talk to the agency.
- Answering a subpoena or testifying truthfully in court.
- Reporting suspected crimes or legal violations to law enforcement or a government agency.
- If you are a non-supervisory employee covered by the National Labor Relations Act, you can discuss wages and working conditions with your coworkers. The 2023 NLRB McLaren Macomb decision limits the scope of confidentiality and non-disparagement clauses, and as of mid-2026, the Board is still applying this rule, even though it may be narrowing the scope.
A clause that tries to block any of these is unenforceable to that extent. Well-drafted agreements say so in a “protected rights” paragraph. If yours does not, ask why.
What the Speak Out Act Does and Does Not Do
The federal Speak Out Act makes non-disclosure and non-disparagement clauses unenforceable when they were signed before a sexual harassment or sexual assault dispute arises. Think of the handbook acknowledgement or offer letter from your first day. Those can’t silence you about harassment.
The Act does not apply to agreements signed after a dispute has occurred. A settlement, by definition, occurs after. So, an employer can still request confidentiality in a harassment settlement in Kentucky. This surprises many workers.
The Tax Rule That Gives You Bargaining Power
Since 2018, federal tax law has denied employers a deduction for sexual harassment or abuse settlements and related attorney fees when the deal includes a non-disclosure provision. Many employers have never done this calculation. Raising this issue in negotiations can change the level of confidentiality they want or what they are willing to pay for it.
Public Employers Are Different
If your employer is a city, county, school district, university, or state agency, the information is likely public record under the Kentucky Open Records Act. The Supreme Court of Kentucky settled this in 1997 in Lexington-Fayette Urban County Government v. Lexington Herald-Leader, and the confidentiality clause does not override the law. In 2026, the General Assembly took further action for schools: House Bill 253 bans nondisclosure agreements in cases of sexual misconduct by school staff towards students.
Before You Sign
A confidentiality clause is not a formality, but a term of sale. Abney Law trial attorneys have secured significant recoveries for Kentucky workers through jury verdicts and settlements. We negotiate the scope, carve-outs and consequences of every non-disclosure agreement our clients are asked to sign. If an employer puts a settlement agreement in front of you, send it to us before signing. Contact us today to schedule a consultation.