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.
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.
It is generally unlawful in California for an employer's severance agreement to state that you may not compete against the employer in a future job.
Example: The following non-disparagement clause would be unlawful under Government Code section 12964.5: “Former Employee agrees that they will not make any statement, directly or indirectly, verbally or in writing, that would cause harm or embarrassment to the Company.” claims in a separation agreement?
A: When entering into a settlement agreement, the parties to a dispute may include a non-disparagement clause. Such a clause is intended to stop one party or both from making negative statements about the other going forward.
Non-Disparagement Clauses Be cautious of one-sided clauses that prevent you from sharing your experience while allowing the company to speak negatively about you, potentially hindering your future job prospects.
Non-disparagement clauses are a common feature of employment agreements. Sometimes, they're included in the contracts that employees sign when they join a company.
It means a lot to agree not to disparage someone. Non-disparagement clauses have been enforced by a vast majority of state and federal courts, and proving that you have disparaged someone is not as hard as you think.
Subject to the Protected Activity Not Prohibited section, Employee agrees to refrain from any disparagement, defamation, libel, or slander of any of the Releasees, and agrees to refrain from any tortious interference with the contracts and relationships of any of the Releasees.