The Pros and Cons of Confidentiality Provisions in Settling Sexual Harassment Claims
The federal and state governments have been searching for ways to address confidentiality and the settlement of sexual harassment claims in response to the #metoo movement and the number of high-profile sexual harassment settlements exposed in the media.
March 25, 2019 at 06:00 AM
5 minute read
It has always been understood that for an employee to get money in a settlement of claims with an employer, that employee must sign a release agreement. What has been less understood is that almost every release agreement contains a confidentiality provision.
Confidentiality provisions are insisted upon by employers in order to protect the employer's reputation and to keep the settlement amount secret. After all, a settlement usually comes at a time when the claims are only allegations and a settlement, especially of a substantial size, may indicate that the employer has something to hide.
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