Non-Disparagement Provision | Practical Law

Non-Disparagement Provision | Practical Law

Non-Disparagement Provision

Non-Disparagement Provision

Practical Law Glossary Item 9-584-2826 (Approx. 3 pages)

Glossary

Non-Disparagement Provision

In the labor and employment context, an agreement or promise restricting an employee or employer from making disparaging remarks about one another. Non-disparagement provisions typically restrict what an employee can or cannot say about the employer following a separation of employment.
A general non-disparagement clause provides that the "Employee agrees that Employee will not disparage the Company or any of its officers, directors, or employees." Some employers also include language that covers disparaging communications made or transmitted on the internet or social media sites.
There is no universal definition for disparagement. Parties therefore can define the term on a case-by-case basis. However, employers should be careful to not make the provision overly broad as to not interfere with the employee's rights under the National Labor Relations Act or restrict their rights to report suspected wrongdoing to any regulatory or administrative agency.
This provision is commonly found in:
  • Settlement agreements.
  • Severance agreements.
  • Stock or benefits agreements.
  • Employment agreements.
  • Employee handbooks.
For more information about non-disparagement provisions and for a sample provision, see: