California Enacts Further Restrictions on Use of Nondisclosure Agreements in Discrimination and Harassment Settlements

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The #MeToo movement caused a significant amount of legislative activity across the country, addressing, among other things, limits on the use of nondisclosure agreements in settlements of sexual harassment claims. Expanding on those protections, California Governor Gavin Newsom has signed into law the Silenced No More Act (S.B. 331), which imposes new, expanded restrictions on the use of nondisclosure agreements (NDAs) in settling bias and harassment claims by employees under various California statutes. The new law, which was passed by the state Senate on August 30, takes effect on January 1, 2022.

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