The governor of California signed into law a bill that prohibits employers from forcing workers to sign nondisclosure agreements (NDA) in cases of workplace harassment and discrimination. A statute passed in 2018 prohibited NDAs in cases of sexual harassment, but this bill extends the ban to situations involving any type of harassment or discrimination.
Under the law, an employer cannot use severance agreements to prevent any current or former employee from talking about workplace misconduct, with a few exceptions. One exception allows employers to prevent workers from disclosing severance agreement amounts.
The law, which constitutes the most restrictive law regulating the use of NDAs, is effective January 01, 2022. Jeong Park "California bans nondisclosure agreements in workplace harassment, discrimination cases" www.modbee.com (Oct. 07, 2021).