Colorado governments of all types will no longer be allowed to press their employees into signing confidentiality agreements under a bill headed to Gov. Jared Polis’ desk.

With some exceptions, Senate Bill 23-53 prohibits state, county, and municipal governments, as well as school districts, from using the non-disclosure agreements with employees, particularly those settling grievances or other employment-related matters, or requiring them as part of someone’s job.

It passed the Senate on Wednesday after that chamber conceded to minor changes the House had made.

Critics said the agreements effectively silenced employees – some of them whistleblowers calling out malfeasance or misconduct – from ever letting anyone know what happened in their cases, and had the potential to bury evidence and prevent investigations of crimes, discrimination, sexual harassment and wage inequality.

“This bill is a critical step forward in protecting the rights of state employees and making sure they are not silenced or intimidated from speaking out,” said attorney Casey Leier, who frequently represents those workers. “I think it’s a major victory for transparency, accountability, and fairness in the workplace.”

He said he “hopes the word gets out” to government employees that “they are free to – and should – speak up when they see abuse in the public sector.”

The measure goes to Polis for his signature and would be effective sometime in August.

The bill came on the heels of a Denver Gazette investigation in November 2022 that found in the past three years alone, dozens of state employees who faced discipline for alleged misconduct were instead given lucrative send-offs and assurances of the government’s silence through non-disclosure deals.

The Gazette also uncovered dozens more examples where state employees agreed to non-disclosure deals for payments of as little as $2,000, with little public record available to explain why.

In all, the Gazette found the state had inked more than 80 settlement agreements with its employees since 2019, totaling more than $4 million in taxpayer-funded payouts, each with a non-disclosure clause preventing them from discussing it with anyone.

The Gazette cited several examples of how the agreements have been used, such as a $62,000 payout to the long-time woman’s softball coach at Adams State University to resign following a Title IX investigation that determined he bullied and retaliated against his ballplayers. The payday was $10,000 more than his annual salary.

The bill’s creator, Sen. Barb Kirkmeyer, R-Brighton, had unsuccessfully tried to pass similar legislation two years ago, found no co-sponsors and never made it out of a single committee.

This time, however, she received bi-partisan support.

The agreements are often pressed on employees during settlement negotiations and, according to attorneys who represent them, they ensure the public can never know what’s at the root of the reason for a payday that can easily top $100,000.

The bill does allow for exceptions, such as preventing employees from revealing sensitive information such as proprietary business dealings or security information. It also allows for an employee to request a non-disclosure agreement in order to protect their privacy – but not as a means for covering up any underlying misconduct or criminal behavior.

“This means that whistleblowers and victims of harassment will no longer be forced to sign NDAs in exchange for settlements, which effectively silenced them and prevented them from speaking out about government waste, abuse and mismanagement,” Leier said. “I’m hopeful that this will end the current culture of secrecy and encourage a new era of greater openness and honesty.”