Fresno, CA asked in Employment Discrimination for California

Q: If my employer is based in PA and I'm a CA resident, can they include a non-disparagement clause in severance agreement?

The company is based in PA but all employees are remote, all over the US. I have been employed in California and was recently given a severance agreement that includes this clause:

Employee agrees to refrain from any disparagement, defamation, libel, or slander any of the Releasees, and agrees to refrain from any tortious interference with the contracts and relationships of any of the Releasees.

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2 Lawyer Answers

A: There is nothing inherently unlawful about the clause you cited. However, attorneys are taught that a contract provision is interpreted in the context of the entire agreement, so no one here can definitively say one way or the other without being able to review the entire document.

Good luck to you.

A: There is nothing inherently illegal about a non-disparagement provision in your severance agreement as long as it complies with California law.

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