Bloomberg's Labor and Employment blog quoted Lauren Teukolsky discussing non-disclosure agreements ("NDAs") in sexual harassment settlements. Employees often agree to keep quiet about the settlement terms in exchange for the settlement amount. Sometimes, the employee will even agree not to discuss the underlying facts of the sexual harassment. There is currently a bill pending in the California Legislature that would ban all NDAs in sexual harassment settlements, even if the employee is willing to accept an NDA in exchange for a higher settlement amount. Plaintiff-side employment lawyers are torn about whether a complete ban on NDAs is in their clients' interests. As Ms. Teukolsky stated in Bloomberg: “I think it’s important for my clients to be able to decide whether they’re willing to sign an NDA in exchange for more settlement money." Also - sexual harassment clients themselves sometimes do not want the facts underlying their claims to be publicly discussed, particularly when their cases are settled before a lawsuit has been filed. We will see whether the California Legislature ultimately bans NDAs or not. California law already prohibits NDAs in settlement agreements in civil cases where the underlying conduct could be charged as a felony sex offense.
Lauren Teukolsky is the founder and owner of Teukolsky Law, A Professional Corporation.