nondisparagement clause
A non-disparagement clause is a provision in an agreement that prohibits the involved parties from making any negative statements, remarks, or representations about each other. These types of clauses typically are found in agreements like employment contracts , separation agreements, or marital settlement agreements .
Non-disparagement clauses are commonly used to prevent current or former employees from making harmful public statements that could negatively impact the business of their employers. They are similar to non-disclosure agreements , which are more general, while non-disparagement clauses specifically address negative statements.
Non-disparagement clauses have faced criticism for being used to cover up employment discrimination . The Speak Out Act , put into effect in 2022, limits enforcement of these agreements in situations involving harassment or abuse (See: 42 U.S. Code Chapter 164 ).
[Last reviewed in October of 2024 by the Wex Definitions Team ]
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