Could California ban NDAs?

| Sep 17, 2021 | Business Litigation |

Non-disclosure agreements are a controversial topic. Some people feel they provide much-needed protection for businesses, but other people feel they are unfair to employees.

According to CNN, the California legislature is working on a bill that would ban NDAs in specific situations. The ban aims to help protect workers.

Details

The proposed ban, the Silenced No More Act, would apply in situations where employers use NDAs to prevent workers from speaking out about sexual abuse and harassment. It would allow workers who have been a victim to be able to speak out about their experiences without facing legal ramifications from an employer.

The new act would stop pre-and post-employment NDAs with clauses that prevent workers from speaking out about any type of harassment or abuse that occurred in the workplace.

STAND Act

The new bill would enhance the STAND Act, which is a law that bans settlements in sexual harassment and abuse cases that prevent the person from speaking out. It also would cover cases involving other protected classes, such as race and gender harassment.

Goals

The goal of the legislation is to stop employers from protecting those committing these acts. While employers may do it to protect their image, they are also protecting the wrongdoer, which is something many people feel is wrong and hurtful to the victims.

In addition, the new bill would give more power to victims. They would be able to hold the responsible party accountable. They could help ensure the person never has another victim by sharing their experiences.

The Silenced No More Act will have to go through the normal process and pass both houses of the state legislature, ending on the desk of the governor who can sign it into law.

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