December 8, 2021

Volume XI, Number 342

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December 07, 2021

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December 06, 2021

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California Further Limits NDAs and Settlement Agreement Terms in Employment Cases

Governor Newsom signed Senate Bill 331 (SB 331), which further limits the use of non-disclosure agreements (NDAs) and settlement agreement terms when settling employment legal claims involving harassment, discrimination, or retaliation.

Before the passage of SB 331, California’s restriction was limited to sex-related claims.  Specifically, since 2019 when SB 820 went into effect, California law prohibited a settlement agreement from preventing the disclosure of factual information regarding a claim in a civil or administrative action alleging sexual assault, sexual harassment, or an act of workplace harassment or discrimination based on sex.

SB 331 expands this prohibition to include other acts of workplace harassment or discrimination that are not based on sex. The bill also requires that any non-disparagement or other contractual provision that restricts an employee’s ability to disclose information related to the conditions of the workplace must include specific language related to the employee’s right to disclose information about unlawful acts in the workplace.

Note this bill is not retroactive and applies to agreements entered into on or after January 1, 2022.

Jackson Lewis P.C. © 2021National Law Review, Volume XI, Number 281
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About this Author

Adrienne L. Conrad Labor & Employment Attorney Jackson Lewis San Diego, CA
Principal

Adrienne L. Conrad is a principal in the San Diego, California, office of Jackson Lewis P.C. She has practiced labor and employment law for more than 18 years.

An experienced trial lawyer, Adrienne is a member of the firm’s General Employment Litigation practice group, having first-chaired jury trials, arbitrations, and state civil rights administrative hearings on behalf of employers.  

Adrienne's practice covers the spectrum of employment litigation. She handles both state and federal claims involving race, age, disability, and sex...

619-573-4900
Melissa D. Owens Labor & Employment Attorney Jackson Lewis San Diego, CA
Associate

Melissa Owens is an Associate in the San Diego, California, office of Jackson Lewis P.C. Her practice focuses on representing employers in workplace law matters.

While earning her law degree, Ms. Owens was an Associate Editor on the California Western Law Review Journal. Additionally, she served as the President of the Women’s Law Caucus, an inclusive organization with the goal of facilitating education and discussion of issues affecting all women in the legal system.  While at California Western School of Law she also earned Distinguished Advocate...

619-573-4930
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