LABOR LEGISLATION 2021 Employment Law Legislative Update JENNY SCHWARTZ AND MENAKA FERNANDO
Labor and employment law in California has
Confidentiality Agreements – SB 331 ex-
been evolving rapidly in recent years. While
pands the prohibition on non-disclosure
perhaps not quite as momentous as some re-
agreements (“NDAs”) found in Civil Code
cent years, 2021 saw much legislative activi-
section 1001 and Government Code section
ty. We provide below a summary of the most
12964.5 in settlement agreements in cases
significant legislation. We also summarize
involving sexual harassment, sexual assault,
significant legislation that either did not pass
and sex discrimination to cover settlement
or that Governor Newsom vetoed since vari-
agreements involving all forms of harassment
ations of these laws could still be on the horizon for future passage.
or discrimination. It also expands the prohibition on overly-broad confidentiality and non-
Signed Legislation
disparagement clauses in employment agreements to prohibit such clauses as part of a
Arbitration Fees – SB 762 strengthens ex-
severance agreement.
isting law that establishes standards for employer breach of arbitration agreements (and
Agricultural Workers – AB 73 expands the
concomitant waiver of right to compel or proceed in arbitration) by requiring payment of arbitration fees within 30 days of the due date. It also requires the arbitration provider to simultaneously send both parties a copy of the fee invoice with the due date.
definition of essential workers to include agricultural workers for the purpose of accessing the personal protective equipment (PPE) stockpile for emergencies established by the State Department of Public Health and the Office of Emergency Services. It also directs the Division of Occupational Safety and
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