Severance Agreement Form With Non-disparagement Clause In Sacramento
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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.
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.
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.
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.
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.
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.
Available legal options for seeking to enforce a non-disparagement agreement primarily include sending a cease-and-desist letter, filing a lawsuit for injunctive relief to stop (or request the removal) of any disparaging statements or posts, and pursuing legal claims for common law defamation.