Labor of Law: Misunderstandings Swirl Around California Confidentiality Clauses
"If defense attorneys are not aware of those nuances, it can be a disservice to their clients. And if plaintiffs' attorneys have a misunderstanding, it can result in overreaching," said Lindsay Ryan, a principal at Polsinelli.
June 15, 2022 at 11:27 PM
6 minute read
Labor of Law
Welcome to Labor of Law, our labor and employment dispatch spotlighting key issues and developing trends. Thanks for reading, and we'd love your feedback. Please email thoughts and tips to Jessica Mach. Want to receive this in your inbox each Thursday? Sign up here.
For years, a handful of states have had laws restricting how confidentiality and non-disparagement clauses can be used in settlement agreements for workplace disputes—particularly those involving sexual assault or harassment.
But in one of those states, California, attorneys for both workers and employers say they still encounter lawyers who don't understand the exact scope of state restrictions—resulting in settlement agreements that hurt both sides.
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