Employment contracts will contain a number of terms that affect both the employer and the employee. In many cases, an employer will want to include terms that protect their interests and prevent employees or former employees from taking actions that could harm the company. These may include non-compete agreements that prevent a person from engaging in unfair competitive activities and non-disclosure agreements that prevent employees from releasing confidential information. In some cases, an employer may also ask employees to sign non-disparagement agreements meant to protect a company’s reputation. By understanding the purpose of these agreements and the restrictions they can put in place, employers and employees can ensure that they are properly protected.
What Is a Non-Disparagement Agreement?
Disparagement may include any statements by an employee or former employee that could harm their employer's reputation. These may include both false statements about a company and factual statements about issues such as workplace policies, the actions of co-workers or supervisors, or the quality of a company’s products or services. Notably, disparagement is different from defamation, which involves false or misleading statements that are meant to cause harm to a company.
A non-disparagement agreement may be included in an employment contract or severance agreement, and it may prohibit a person from making negative statements about their current or former employer. These restrictions may apply to any forms of communication, including posting information on social media, talking to news reporters, or having private discussions with friends, co-workers, or acquaintances. However, a non-disparagement agreement cannot restrict a person’s ability to file a workers’ compensation claim, and an employee will be allowed to speak to investigators from government agencies who are looking into alleged violations of laws or regulations.
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