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Non-Disparagement clause addition

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LALaw

Junior Member
What is the name of your state (only U.S. law)? CA

I work for a small social media company who recently decided to update its employee handbook. No problem, I'm fine with agreeing to an updated employee handbook as regularly happens with businesses but my issue lies with a new provision in it of a Non-Disparagement clause; a clause agreeing to damages in the amount of $100,000 should a written or oral disparagement ever occur of the company or its owner in perpetuity. The way this updated employee handbook was presented to us NEVER made mention of this fact, even in our daily afternoon company-wide team meetings where over communication on the day's events is stressed. Rather, updates to the employee dress code were clearly communicated to the office in the updated employee handbook by the CEO as being part of the "minor changes" made in the handbook including the use of open toed shoes and tank tops.

I personally feel a $100,000 damages agreement attached to a non-disparagement clause is definitely a big deal. The fact this point was at no time verbally mentioned to the office leads me to believe it was willfully done so in hopes employees would not find out about it. My question is, should I sign onto this updated employee handbook? Is a Non-Disparagement clause inclusion even a legal addition to an employee handbook (will it uphold in court)? There are increasing demands from upper management to sign the new employee handbook (hourly email reminders from HR in fact) and I feel I'm being pressured to do so. Keep in mind I'm a regular at will employee (salaried and hourly employees work here) in the state of California.
 


quincy

Senior Member
What is the name of your state (only U.S. law)? CA

I work for a small social media company who recently decided to update its employee handbook. No problem, I'm fine with agreeing to an updated employee handbook as regularly happens with businesses but my issue lies with a new provision in it of a Non-Disparagement clause; a clause agreeing to damages in the amount of $100,000 should a written or oral disparagement ever occur of the company or its owner in perpetuity. The way this updated employee handbook was presented to us NEVER made mention of this fact, even in our daily afternoon company-wide team meetings where over communication on the day's events is stressed. Rather, updates to the employee dress code were clearly communicated to the office in the updated employee handbook by the CEO as being part of the "minor changes" made in the handbook including the use of open toed shoes and tank tops.

I personally feel a $100,000 damages agreement attached to a non-disparagement clause is definitely a big deal. The fact this point was at no time verbally mentioned to the office leads me to believe it was willfully done so in hopes employees would not find out about it. My question is, should I sign onto this updated employee handbook? Is a Non-Disparagement clause inclusion even a legal addition to an employee handbook (will it uphold in court)? There are increasing demands from upper management to sign the new employee handbook (hourly email reminders from HR in fact) and I feel I'm being pressured to do so. Keep in mind I'm a regular at will employee (salaried and hourly employees work here) in the state of California.
A clause that prohibits employees from speaking out against their employer would not be enforceable in California. If what is said by an employee about the employer is not only disparaging but defamatory, the employer has legal recourse under defamation laws of the state. Any employer that decides to include a non-disparagement clause in their employment contracts will need to word the clause very carefully so that the terms do not violate employee rights.

California Civil Code Section 1607.8: http://www.leginfo.ca.gov/cgi-bin/displaycode?section=civ&group=01001-02000&file=1667-1670.8

National Labor Relations Act Section 7, 8(a)(1): https://www.nlrb.gov/rights-we-protect/whats-law/employers/interfering-employee-rights-section-7-8a1

Whether you want to sign the handbook with the clause or bring the legality of the clause to the attention of your employer is ultimately up to you - but you might be smart to show the handbook to an attorney in your area before doing either, so the California attorney can provide you an opinion after a personal and complete review of the handbook in its entirety.

Good luck.
 
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