As a result of the #MeToo movement, several states moved to quash the use of nondisclosure agreements in cases where sexual harassment was alleged. Many employers voluntarily agreed to stop using such clauses where sexual harassment was alleged, even when state law did not prevent them from doing so. Now, nondisparagement clauses are under attack. Many employers utilize nondisparagement clauses to prevent employees who have received a settlement or severance payment from speaking poorly of the company. At least seven states (including Connecticut), however, are attempting to limit the use of these clauses. In many ways, if a state prohibits nondisclosure agreements already, a nondisparagement clause, at least as it relates to the underlying harassment, would be unenforceable anyway, so in many ways this is a restatement of the nondisclosure limitations. In order to determine whether a nondisparagement clause is right for your business, please reach out to a member of our team.
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