It has always been understood that for an employee to get money in a settlement of claims with an employer, that employee must sign a release agreement. What has been less understood is that almost every release agreement contains a confidentiality provision.
Confidentiality provisions are insisted upon by employers in order to protect the employer’s reputation and to keep the settlement amount secret. After all, a settlement usually comes at a time when the claims are only allegations and a settlement, especially of a substantial size, may indicate that the employer has something to hide.
