Confidentiality provisions restrict disclosure of the settlement amount, terms, and sometimes the underlying allegations. Enforceability varies, and several states restrict confidentiality where public safety or specific claim types are involved.
Court approval may be required for sealing.
Alternative Names:
Confidentiality in Settlement, Sealed Settlement
Why it Matters?
Statutory restrictions have expanded, with several states barring confidentiality provisions covering sexual harassment claims, public hazards, and in some jurisdictions the existence of a settlement itself. Provisions that violate those statutes may be unenforceable while the rest of the agreement stands. Drafting a liquidated damages provision for breach is also worth considering, since actual damages from disclosure are difficult to prove.
Frequently Confused with
Related terms
Frequently asked questions
Are confidentiality provisions always enforceable?
Why include liquidated damages?
