Severance agreements often include confidentiality clauses, but you should understand their impact before signing. These clauses can limit what you say about your former employer, sometimes even restricting discussions with coworkers. Knowing your rights can help you decide whether the terms are fair.
What does a confidentiality clause cover?
A confidentiality clause in a severance agreement usually prevents you from sharing details about the agreement itself, including the amount of severance pay. It may also prohibit you from discussing company secrets, financial details, or workplace issues. Some clauses extend to social media, limiting what you can post about your experience.
Are confidentiality clauses enforceable in Texas?
In Texas, confidentiality clauses are generally enforceable if they are reasonable and clear. Courts may reject overly broad agreements that prevent you from speaking about illegal activities, discrimination, or workplace safety concerns. If a clause limits your ability to seek future employment, it may also be challenged.
Can you negotiate a confidentiality clause?
You don’t have to accept a confidentiality clause as written. If you’re uncomfortable with broad restrictions, you can ask for modifications. Employers may agree to limit the clause to sensitive business information rather than banning all discussions. If you need to speak with family members or financial advisors, you can request an exception.
Violating a confidentiality clause could result in legal action, such as losing severance pay or facing a lawsuit. Employers may seek financial damages if they believe your disclosure harmed the company. If a clause seems unfair, addressing it before signing is the most reliable way to avoid future problems.