Severance Agreement Form With Non-disparagement Clause In Illinois
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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.
Non-competes are generally binding. So they are enforceable when an employee leaves the company. It doesn't matter if you're fired or resign. Valid agreements must be reasonable in scope.
These agreements don't even have to be signed to be deemed problematic, the board noted: If the firm merely presents employees with agreements that contain broad language requiring confidentiality or nondisparagement, it is engaging in an unfair labor practice.
Several factors can void or limit the enforceability of a non-compete agreement, including overly broad restrictions, unreasonable time frames or geographical limits, lack of consideration (such as compensation or job opportunities provided in exchange for the agreement), and violation of public policy.
Fraud, misrepresentation, duress, or unconscionability are common defenses you can use if you want to void a severance agreement that you already signed.
Non-compete agreements are illegal in California, but some companies still include them in severance packages. If you see one, ask for it to be removed.
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.
These agreements don't even have to be signed to be deemed problematic, the board noted: If the firm merely presents employees with agreements that contain broad language requiring confidentiality or nondisparagement, it is engaging in an unfair labor practice.