Severance Agreement Form With Non-disparagement Clause In California
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What Is the New Law for Severance Agreements in California? California's “Silenced No More Act” began in January 2022 and impacted severance agreements by prohibiting employers from including non-disclosure and non-disparagement clauses where it relates to harassment, discrimination, and retaliation.
“Disparagement” simply means to speak negatively or belittlingly about a business. Therefore, all commercial disparagement claims must include some type of belittling statement about a business.
So if you were laid off and signed a separation agreement even before the February ruling, your former employer won't be able to enforce any overly broad confidentiality, non-disclosure, and non-disparagement clauses in your original agreement.
Fortunately, it is unlawful for an employer to enforce non-compete agreements in California.
In California, Government Code § 12964.5 makes it unlawful for employers to include a non-disparagement clause without clear language that preserves your right to disclose unlawful conduct.
In California, Government Code § 12964.5 makes it unlawful for employers to include a non-disparagement clause without clear language that preserves your right to disclose unlawful conduct.
While California imposes strict limitations on NDAs, they are still enforceable in specific scenarios. You can use NDAs to protect: Trade secrets, such as recipes, algorithms, or manufacturing processes. Customer and supplier information.
As to whether the non-disparagement clause is lawful, that depends on whether certain exceptions are provided for. There should be exceptions that allow a party to provide truthful testimony in legal proceedings, communicate truthfully with any government agency, or enforce the agreement the parties signed.