If you are settling a legal dispute with your employer in California, you should learn about non-disparagement clauses. You may see one in your agreement, or you may want one to protect yourself. Knowing how these rules work and what state law allows is vital to protecting your career.
What is a non-disparagement clause?
A non-disparagement clause prevents individuals or entities from speaking critically about each other. In job settlements, these rules can stop you from publicly criticizing your former boss. These clauses can also stop a company from criticizing you. This helps protect reputations so both sides can move on without public conflict.
California’s approach to non-disparagement
California limits non-disparagement clauses in certain contexts. Under California law, employers cannot require non-disparagement provisions as a condition of settlement or employment. This specifically applies to sexual harassment, sexual assault and other forms of workplace harassment and discrimination.
Senate Bill 331 prevents employers from hiding factual information about illegal acts in the workplace. While an employer can keep the settlement amount secret, they cannot stop you from discussing the facts of your harassment or discrimination claim. However, for other disputes, such as unpaid wages or a breach of contract, both sides can still negotiate these clauses.
Should you request one?
Whether you should ask for a non-disparagement clause depends on your situation. If you worry that your former boss might damage your reputation, this protection is very helpful. A “mutual” clause binds both you and the employer. This stops the company from saying negative statements about you to future employers or others in your industry.
Consider requesting a non-disparagement clause to protect your professional standing or prevent retaliation. Crafting a tailored, mutual provision ensures you protect your professional record without giving up essential rights.
Do you need legal guidance?
Before you sign any settlement, read the terms carefully. Some clauses are too broad and might stop you from talking about your work experience in professional settings.
Settlement talks are complex, especially with current California laws. Speaking with an experienced employment professional ensures you get a fair deal. A legal representative can help you negotiate terms that protect your future while following state rules.