How do NDAs work? Mike Bloomberg says he’ll release 3 women from them after criticism

After Democratic presidential candidate Mike Bloomberg was questioned about his media company’s use of nondisclosure agreements, he said on Friday that he will release three women from them.

“I’ve had the company go back over its record and they’ve identified 3 NDAs that we signed over the past 30-plus years with women to address complaints about comments they said I had made,” Bloomberg said in a statement. “If any of them want to be released from their NDA so that they can talk about those allegations, they should contact the company and they’ll be given a release.”

Multiple lawsuits have been filed against Bloomberg or his company, with women alleging they were discriminated against and Bloomberg created “a culture of sexual harassment and degradation,” The Washington Post reported.

Bloomberg previously addressed the NDAs, saying, “You can’t just walk away from it. They’re legal agreements, and for all I know the other side wouldn’t want to get out of it,” according to The Washington Post.

How do NDAs work?

An NDA prevents signers from “disclosing specific information, such as claims of bias or harassment that led to a settlement,” CBS reported.

Some companies have used NDAs in settlement agreements for women who alleged harassment in the workplace, according to CBS. The NDAs prevent them from speaking out about their complaints, the outlet reported.

Why do people sign them?

People who sign NDAs could face penalties if they chose to speak out, according to CBS.

“Many women go into the settlement agreement because they just don’t want to face what potentially could be coming,” former Fox News anchor Juliet Huddy told CBS.

Huddy, according to The New York Times, signed a confidentiality agreement for her allegations against former Fox News host Bill O’Reilly.

“Some people just want to make it go away and move on with their lives,” Huddy said.

What have other candidates said about NDAs?

Sen. Elizabeth Warren, D-Mass, questioned Bloomberg at the Democratic debate for the sexual harassment allegations made against him and his company’s use of NDAs, The Hill reported.

Warren later created a document that Bloomberg could use to release former employees from the NDAs, according to The Hill.

“So I used to teach contract law. And I thought I would make this easy,” Warren said during a CNN town hall, according to The Hill. “I wrote up a release and covenant not to sue. And all that Mayor Bloomberg has to do is download it. I’ll text it. Sign it. And then the women, or men, will be free to speak and tell their own stories.”

What’s been done about NDAS?

Former California Gov. Jerry Brown signed a law that would bar NDAs from being used in settlements involving sexual harassment, assault or discrimination based on sex, according to the Los Angeles Times.

California is one of the first states in the country to restrict NDAs, the Los Angeles Times reported.

A law in New York also only allows confidentiality agreements if requested by the victim, according to the outlet.