California Further Restricts “Non-Disparagement” Provisions In Employment Settlement And Severance Agreements
In 2019, California adopted several laws that restricted “non-disclosure” provisions in employment-related agreements. Those laws, passed in the wake of the “me too” movement, limited non-disclosure provisions in settlement agreements for lawsuits and administrative agency charges involving allegations of sexual harassment.1 They also limited the use of non-disclosure provisions in exchange for a raise or a bonus, or as a condition of employment or continued employment.2
The following year, AB 749 restricted the use of “no-rehire” provisions in employment settlement […]