California Employee and Severance NDA
Draft a California employee or severance NDA that complies with the Silenced No More Act, with the state-required carve-out for unlawful workplace conduct.
Introduction
A California employee NDA is a confidentiality agreement between a company and a worker that protects the employer's trade secrets and confidential business information. A severance NDA is the version signed at separation, usually inside a release agreement, and it often keeps the terms of the exit private. What separates it from a commercial NDA between two businesses is who signs it: a worker cannot be forced to stay silent about unlawful conduct. In California, the Silenced No More Act (SB 331, Government Code section 12964.5) makes it unlawful to require a worker to sign a non-disclosure or non-disparagement clause denying the right to disclose any conduct they reasonably believe is unlawful, not just sexual harassment, and it requires specific carve-out language stating what the worker may still discuss. DocDraft drafts a California-compliant employee or severance NDA from your facts, with the required carve-out language built in, and attorney review is available before anyone signs.
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Key Things to Know
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California's Silenced No More Act (SB 331) is broad. An employee NDA or non-disparagement clause cannot deny a worker the right to disclose any conduct they reasonably believe is unlawful, not just sexual harassment.
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California requires specific carve-out language. A non-disparagement or similar clause tied to a raise, employment, or separation must include a set sentence confirming the worker may still discuss unlawful workplace acts.
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Settlement confidentiality is separately limited. Code of Civil Procedure section 1001 voids a settlement provision that conceals sexual assault, sexual harassment, or workplace harassment, discrimination, or retaliation.
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The employee can still choose confidentiality of their own identity. In a settlement, the worker may request that their identity and facts that could reveal it stay confidential. That choice belongs to the employee, not the employer.
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Trade secrets remain fully protectable. California law still lets an NDA protect legitimate trade secrets and confidential business information, so a well-drafted agreement keeps that scope and drops only the unlawful restrictions.
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Do not bundle a non-compete. California voids employee non-compete agreements under Business and Professions Code section 16600, and 2024 amendments make even signing one an unlawful practice, so competition restrictions do not belong in a California NDA.
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A defective clause does not sink the whole agreement. An NDA provision that violates SB 331 is unenforceable, but the rest of a properly drafted California NDA still stands.
Key decisions before you file
Before you file a Employee and Severance NDA in California, a few decisions shape the document: which option to choose and what each one means. The Employee and Severance NDA guide walks through them.
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California Requirements for Employee and Severance NDA
California Silenced No More Act (SB 331)
Draft a California employee or severance NDA that complies with the Silenced No More Act, with the state-required carve-out for unlawful workplace conduct.