Increased Employee Protections Enacted for Various Employment-Related Agreements

Increased Employee Protections Enacted for Various Employment-Related Agreements

Under existing law, settlement agreements cannot restrict employees from disclosing underlying factual information of settled sexual harassment claims. Beginning January 1, 2022, this restriction will expand to settled discrimination and other categories of settled harassment claims prohibited under the California Fair Employment & Housing Act (FEHA). Additionally, current prohibitions on employers using employment agreements to release rights or curb disclosure of sexual harassment or discrimination factual allegations as a condition of employment will now broaden to other FEHA-prohibited harassment or discrimination. Finally, separation agreements (i) can no longer contain non-disparagement or confidentiality provisions that interfere with disclosure of conduct violating the FEHA, (ii) must contain a special provision in the non-disparagement/confidentiality clause reinforcing the separating employee’s right to disclose unlawful workplace acts, and (iii) must notify the separating employee of their right to consult an attorney before signing and right to a reasonable consideration period of at least 5 business days before signing.