California Strengthens Nondisclosure Agreement Ban in New Law

California Gov. Gavin Newsom (D) on Thursday signed into law a measure banning the use of legal agreements to silence workers who allege they were harassed in the workplace.

The new law (S.B. 331) would bar an employer or former employer from including language in an agreement that would prohibit a worker from publicly disclosing allegations of workplace harassment. It will take effect Jan. 1, 2022.

The measure expands on a 2018 law (S.B. 820) that prohibited nondisclosure agreements in settlements of sexual harassment and gender discrimination claims. That law was passed after news reports ...