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Nondisparagement Clause

Nondisparagement Clause

Definition

Nondisparagement Clause — a type of clause frequently used in employment agreements (i.e., as part of a severance package), which requires that employees or former employees do not "disparage" their employer upon severing a working relationship. According to the legal definition of disparagement, this clause bars the parties from making false and/or injurious declarations that are derogatory in nature. Nondisparagement clauses are frequently worded so as to be unlimited in time, technically preventing one party from ever disparaging the other. Nondisparagement clauses may also be mutual, meaning both the employee and the employer are barred from disparaging the other. Such clauses have been subject to federal and state scrutiny and may not always be upheld in court.

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