Senate Bill 331, which expands existing prohibitions on confidentiality and non-disparagement clauses in settlement agreements, has now been signed into law. While I have heard some are concerned about the impact this will have on the confidentiality agreements used in the workers' compensation arena, I do not think that the scope of this legislation should be overstated. While practitioners in workers' compensation should certainly be wary of this new law when settling claims involving workplace harassment or discrimination claims (think psyche claims or Labor Code section 132a claims), for many cases there should be little to no impact.
That being said, care should be taken in drafting separation agreements to ensure that they comply with the new requirements barring inclusion of any provision that prohibits the disclosure of information about unlawful acts (i.e. any type of harassment or discrimination, or other conduct that an employee reasonably believes is unlawful) in the workplace.
Learn more: https://www.jdsupra.com/legalnews/california-employer-compliance-sb-331-8454868/