California bars forced non-disclosure clauses in severance agreements

- Advertisement -


October 7 (Businesshala) – California will bar companies from requiring non-disclosure agreements with employees over claims of workplace harassment under a bill signed into law on Thursday in a victory for tech workers who backed the proposal.

- Advertisement -

The Silenced No More Act was co-sponsored by Ifoma Ozoma, who left Pinterest Inc (PINS.N) last year after expressing concerns about gender and racial discrimination, and also support from organizations including TechEquity Collaborative who advocate for workers in tech and other industries.

- Advertisement -

Supporters say the law, which goes into effect January 1, will enable workers to speak up 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 plaguing many companies.

The new law says that settlement agreements cannot prevent or prohibit workers from disclosing facts related to harassment and discrimination claims filed against the company. It also prohibits settlements from including nondiscrimination clauses that prevent people from talking about illegal acts in the workplace.

- Advertisement -

As part of efforts to respond to the #metoo stories, California lawmakers three years ago banned companies from enforcing nondisclosure agreements, or NDAs, in cases of sexual assault, sexual harassment or sexual discrimination, concerns that From that secret deals were allowing the companies to be retained. problematic cultures.

The new law covers privacy in a wide range of cases, including racial discrimination and harassment based on disability.

Ozoma said last year that as a black woman, she was singled out by managers on Pinterest for certain tasks and underpaid. Supporters said the new law would help hold companies accountable to promises made to offer a diverse and inclusive workplace.

Pinterest signed on as a supporter of the law.

Reporting by Paresh Dave; Editing by Stephen Coates

.

- Advertisement -

Stay on top - Get the daily news in your inbox

DMCA / Correction Notice

Recent Articles

Related Stories

Stay on top - Get the daily news in your inbox