It is a violation of the Act by simply requesting or requiring an employee to enter into a covered nondisclosure or nondisparagement agreement, even prior to enforcement. Violation of the Act includes payment of actual damages or $10,000 whichever is more as well as reasonable attorneys’ fees and costs.
The Act is retroactive and invalidates any covered nondisclosure or nondisparagement agreement that were entered into at the outset of employment or during employment. However, any such agreement in the settlement of a prior legal claim remains enforceable but will not be permitted in the future.
