California has once again reined in the use of confidentiality provisions in the employment context with its recent enactment of the Silenced No More Act (SB 331), which goes into effect January 1, 2022.
California currently bans employers from using confidentiality provisions in agreements involving claims for sexual assault, sexual harassment, and sex discrimination. SB 331 extends the ban further. Beginning next year, employers cannot use confidentiality provisions in agreements involving any protected characteristic under the Fair Employment and Housing Act (FEHA), including race, religion, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, familial status, sex, gender, gender identity, gender expression, age, sexual orientation, and veteran or military status. Any agreement entered into on or after January 1, 2022 that violates SB 331 is void as a matter of law and against public policy.
Below we address how the passage of this new law impacts litigation settlement agreements, separation agreements, and other employment agreements, and how businesses can ensure compliance.
Under SB 331 (amending California Code of Civil Procedure section 1001), a litigation settlement agreement may not prevent the disclosure of factual information relating to any form of FEHA discrimination in connection with FEHA claims asserted by an employee in...
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