Tag: non-disclosure agreement

BOSTON — With Gov. Maura Healey and other Beacon Hill leaders out of state for the Democratic National Convention, state Auditor Diana DiZoglio is using the Statehouse bully pulpit to draw attention to the issue of nondisclosure agreements.

On Tuesday, DiZoglio proposed an executive order that would — if she had signed it as acting governor — ban state agencies from using such agreements if they involve claims of discrimination, harassment or retaliation and require existing agreements to be posted on the state comptroller’s website for the public to view.

“This is just a proposal to make meaningful change for transparency and accountability and prevent the use of taxpayer dollars for these agreements,” the Methuen Democrat told reporters at a briefing. “We want to work with the administration.”

The proposal comes after DiZoglio’s office released an audit of the Massachusetts Convention Center Authority, claiming the agency violated state laws and its own procurement policies by failing to secure board approval for a no-bid media contract and a nondisclosure agreement for a $1.2 million settlement with an employee alleging racial discrimination.

“That is absolutely unacceptable and we need to take bold and meaningful action across our state government to prevent that type of abuse of power from continuing to occur,” DiZoglio said.

DiZoglio said she hopes the governor will considering signing the order, or work with her to adopt restrictions on the use of NDAs by the state government and quasi-public entities. Her office is conducting a statewide audit of NDA settlements.

A Healey spokeswoman issued a statement Tuesday, saying only that the governor is “cooperating with the ongoing audit and will continue to discuss this issue with the auditor.”

Under state law, the state auditor is fifth in the line of gubernatorial succession behind the lieutenant governor, secretary of state, attorney general and treasurer if the governor dies in office or leaves the state for vacation or official business.

With Healey and top Democrats attending the Democratic National Convention in Chicago this week, DiZoglio was possibly in line to take over as acting governor.

That didn’t happen, because Lt. Gov. Kim Driscoll stayed behind and Secretary of State Bill Galvin returned from the DNC on Tuesday, taking over as acting governor. Driscoll departed for Chicago on Tuesday afternoon, according to Galvin’s office.

But that didn’t stop DiZoglio — who is rumored to be eyeing a run for governor in the 2026 elections — from using the brush with the governor’s office to highlight a key initiative.

DiZoglio said she likely would have signed the executive order as acting governor if Healey’s predecessor, Republican Charlie Baker, were still occupying the governor’s office.

“Because the previous administration repeatedly and consistently opposed any and all reforms to the abuse of taxpayer dollars that are used in these non-disclosure agreements,” she said. “That is not the case with this current administration.”

As a state lawmaker, DiZoglio pushed for a state ban on nondisclosure agreements, which are commonly used by large companies to protect trade secrets, resolve arbitration cases and settle workplace conflicts.

DiZoglio, victims rights advocates and other critics who are pushing to restrict the practice, say NDAs are increasingly shielding powerful men from accusations of abuse or rape.

Disgraced Hollywood producer Harvey Weinstein and former Fox News star anchor Bill O’Reilly are among those who’ve been accused of hiding allegations of sexual harassment for years with out-of-court settlements and nondisclosure agreements that forbid the parties from talking about the cases.

A firestorm surrounding the public accusations of sexual harassment against Weinstein and other men, fueled by the #MeToo movement, focused public attention on the ability of wealthy and powerful people to avoid scrutiny for decades despite repeated allegations.

But DiZoglio says NDAs are also being used by the state to shield actions by the state government and quasi-governmental agencies like the convention authority.

Still, legal experts say a total ban on nondisclosure and arbitration clauses raises constitutional issues.

Pro-business groups such as the Associated Industries of Massachusetts argue that arbitration and other non-judicial remedies are crucial to resolving workplace conflicts. Banning the practice would clog the courts with employment law cases, the group asserts.

To date, at least six states — California, Maryland, New Jersey, Tennessee, Vermont and Washington — have banned the use of nondisclosure agreements in settlements involving claims of sexual assault, harassment or discrimination.

Christian M. Wade covers the Massachusetts Statehouse for North of Boston Media Group’s newspapers and websites. Email him at cwade@cnhinews.com.