Severance Agreement Form With Non-disparagement Clause In Collin
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FAQ
When settling a lawsuit or pre-litigation disputes, parties sometimes insist on including non-disparagement clauses in their settlement or severance agreements. Broadly speaking, these clauses prevent one or both parties to the agreement from making negative comments about each other.
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.
This provision is commonly found in: Settlement agreements. Severance agreements. Stock or benefits agreements.
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.
Severance agreements can be challenged on grounds of unconscionability or duress. Unconscionability refers to terms that are so one-sided or oppressive that they shock the conscience.
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.
During the Agreement Term and thereafter, Executive agrees that he will not take action which is intended or would reasonably be expected to harm the Company or its reputation or which would reasonably be expected to lead to unwanted or unfavorable publicity to the Company.
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.
You shall not, directly or indirectly, in any communications with any reporter, author, producer or any similar person or entity, the press or other media, or any customer, client or supplier of the Company, criticize, ridicule or make any statement which is negative, disparages or is derogatory of the Company or any ...