Non-disparagement provisions prohibit derogatory statements about the other party. Scope may cover the parties, their employees, products, or the underlying dispute, and may be mutual or one-sided.
Enforceability against truthful statements is contested.
Alternative Names:
Non-Disparagement Provision, Anti-Disparagement Clause
Why it Matters?
Enforcement against truthful statements raises real questions, and some courts decline to enforce provisions barring accurate accounts of a party's conduct. Regulatory restrictions also apply, since federal agencies have taken the position that provisions preventing employees from reporting to authorities are unenforceable. Carving out truthful testimony, regulatory reporting, and legally compelled disclosure is standard and avoids the issue.
Frequently Confused with
Related terms
Frequently asked questions
Can a non-disparagement clause bar truthful statements?
What carve-outs are standard?
