California continues to tighten restrictions on confidentiality provisions in employment agreements. A recent article featured on Lexology highlights the expanding impact of the state’s “Silenced No More Act,” which significantly broadens limits on nondisclosure clauses in the workplace.
Originally, California law curtailed confidentiality provisions related to sexual harassment and sex-based discrimination claims. The Silenced No More Act extends those restrictions to all protected categories under the Fair Employment and Housing Act (FEHA)—including race, religion, disability, age, sexual orientation, gender identity, national origin, and more.
What Has Changed?
Under the expanded law, employers may no longer include provisions in settlement agreements that prevent employees from disclosing factual information related to claims of harassment, discrimination, or retaliation based on any FEHA-protected characteristic.
While confidentiality may still apply to the amount paid in settlement, employees cannot be barred from discussing the underlying facts of the alleged misconduct.
In addition, the legislation affects separation agreements and other employment-related contracts. Employers cannot require employees to waive their right to disclose unlawful workplace acts, even outside of formal litigation settings.
Why This Matters for Employers
The expanded scope significantly impacts how employers draft:
- Settlement agreements
- Separation and severance agreements
- Employment contracts
- Arbitration agreements
- Workplace policies addressing confidentiality
Companies that rely on broad nondisclosure language must ensure their agreements are narrowly tailored and compliant with California law. Overly restrictive confidentiality provisions risk being unenforceable and could expose employers to further claims.
Broader Implications
California’s approach reflects a broader legislative trend toward transparency in workplace misconduct claims. The policy rationale behind these changes is to prevent employers from silencing employees through contractual language—particularly in situations involving systemic or repeated misconduct.
For multistate employers, the development also raises compliance questions, as California continues to lead in expanding employee protections that may eventually influence other jurisdictions.
Employers operating in California should review template agreements and consult counsel to ensure their confidentiality provisions align with the expanded requirements.
Read the full article on Lexology here:
https://www.lexology.com/library/detail.aspx?g=the-shrinking-scope-of-confidentiality-california-extends-confidentiality-ban-to-all-feha-protected-classes