While California law does not require employers to offer severance pay, providing it in exchange for a release of claims can be a strategic move to avoid future litigation when parting ways with employees. For at-will employees, where no contract mandates severance, an employer may still benefit from offering a severance package in specific situations

AB 331 known as the “Silenced No More Act,” was approved by the Governor on October 7, 2021, and its provisions applies to employment agreements, such as severance agreements, settlements agreements, or a release of claims.  Here are five items employers should understand about AB 331:

1. When does AB 331 take effect?

AB 331

Even though severance pay is not required under California law, employers facing disputes with exiting employees should consider offering severance pay in exchange for a release of claims in order to preempt potential litigation.  If an employee is at-will and either the employer or the employee decides to end the employment relationship, unless there is

California passed a wave of new laws in 2018 relating to the #metoo movement, many of which prohibit confidential settlement agreements or disclosure of allegations related to sexual harassment in the workplace.  This Friday’s Five post reviews five areas impacted by these new laws in 2019, which illustrate the need for employers to stay informed