Non-disparagement clauses are common in severance agreements, aiming to prevent former employees from making negative statements about the employer. However, if these provisions are too broad, they can be deemed unenforceable.
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.
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.
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.
On December 7, 2022, President Biden signed into law the Speak Out Act, which limits the enforceability of non-disclosure and non-disparagement clauses related to allegations of sexual assault and sexual harassment.
An Ohio Standard Clause limiting an employee's solicitation of employees and customers during the term of the employee's employment and for a specified period after the employment relationship ends. This Standard Clause is intended for use by private employers.
Readers should note that “disparagement” is not the same as “defamation.” Defamatory statements are factually false statements that harm the target's reputation. Disparaging statements harm the target's reputation regardless of whether they are true, false, factual, or opinion-based.
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.
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.