California bars forced non-disclosure clauses in severance agreements

California bars forced non-disclosure clauses in severance agreements

California bars forced non-disclosure clauses in severance agreements

Information about California bars forced non-disclosure clauses in severance agreements

Kevin David


By Paresh Dave
(Reuters) – California will bar companies from requiring non-disclosure agreements in settlements with employees over workplace harassment claims under a bill signed into law on Thursday in a win for tech workers who championed the proposal.
The Silenced No More Act had been co-sponsored by Ifeoma Ozoma, who quit Pinterest Inc last year after voicing concerns about gender and racial discrimination, and also drew backing from organizations including TechEquity Collaborative that advocate for workers in tech and other industries.
Supporters say the law, which goes into effect Jan. 1, will enable workers to speak out about experiences of harassment and discrimination without fear that companies could tear up severance packages. They say allowing more people to publicly address workplace treatment could help curb systemic racism and other problems ailing many companies.

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