In recent years, several statutes have been passed in response to the #MeToo movement. One such statute, California Civil Code § 1001, has drastically changed the legal landscape around settling cases involving sexual harassment or sex discrimination. Below is a snippet from an article released by Derek Haynes and Dylan de Wit, practicing attorneys with the Porter Scott Law Firm out of Sacramento.
“California is a hot-bed for employment litigation. Countless cases are filed every month. However, very few of those cases ever go to trial. They resolve in a variety of ways, including through negotiated settlement agreements between employers and the accusing employees.
It is standard practice to include confidentiality provisions in settlement agreements. Confidentiality provisions prohibit parties from publicizing or discussing their allegations after a case settles. The importance of those provisions is obvious. Employers do not want to issue settlement payments only to have the accusing employees turn around and disparage them in public. That is particularly true because employers often settle cases to avoid the significant costs and inconvenience of prolonged litigation, not because there is truth to the employees’ allegations.
The new statute, C.C.P. § 1001, now changes that landscape. It prohibits confidentiality provisions in a variety of cases, including those involving allegations of sexual harassment and sex discrimination. Employers can still settle sexual harassment and sex discrimination cases, but no longer can the settlement agreements prohibit the accuser from publicizing their allegations. ”
Please click here to view the full article, which includes the limitations of this statute. We recommend sharing this article with your HR Department and Counsel. Please reach out to GSRMA Loss Prevention staff if you have any questions regarding this statute.