California Governor Gavin Newsom signed legislation that expands existing law prohibiting confidentiality provisions in settlement agreements and expands restrictions on the use of non-disparagement clauses in employment agreements. The new law – known as the "Silenced No More Act" (SB 331 or the "Act") – also imposes new time and notice requirements for separation agreements. What do employers need to know about the Act?
The Act builds on SB 820, also known as the STAND (Stand Together Against Nondisclosure) Act, which was passed in response to the #MeToo movement. The STAND Act prohibited the use of confidentiality provisions in settlement agreements for employment (civil or administrative) actions involving claims based on sex (assault, discrimination, retaliation, and harassment). The Act broadens those restrictions to now include harassment and discrimination claims on the basis of any characteristic protected under the Fair Employment and Housing Act (FEHA), not merely those pertaining to sex.
SB 331 preserves the confidentiality of the identity of the claimant when requested by the claimant. Settlement agreements may still incorporate provisions preventing disclosure of the amount paid to resolve the claims.
Currently, employers are prohibited from requiring an employee to sign a non-disparagement clause denying the employee's right to disclose...
Community Notes, which allows users to contribute notes that add context or corrections to posts, was introduced by X in late 2022 and the same model is increasingly being adopted by other tech pl...