California passed more than a dozen measures to bolster the #MeToo laws in 2018, many dealing with public entities and private citizens. However, there are two notable laws that businesses should keep in mind moving forward into 2019. Violations of these could result in fines and potentially a lot of bad press.
Nondisclosure Agreements for Settlements Involving Sexual Claims
Though nondisclosure agreements (NDAs) are rightfully used to keep private information private, some entities have taken the use of these too far, and are using NDAs to protect private information that, quite frankly, is illegal or would normally be considered public information.
Board of Directors
Companies with boards should also keep in mind the other, more highly publicized law which Governor Brown also enacted back in September. This law requires publicly held companies based in California to have at least one female on their boards of directors by the end of 2019. In addition, depending on the size of their boards, additional females may be required by the end of 2021. Financial penalties will apply for noncompliance, ranging from $100,000 to $300,000, depending upon the violation.
If you have any concerns about your company’s compliance with these, or any other laws, contact a local business and commercial attorney. Investing in some legal advice on these new laws could save you considerably in the long run.
Related Resources:
- Find a Business and Commercial Lawyer Near You (FindLaw’s Lawyer Directory)
- How to Protect Your Company Secrets (FindLaw Free Enterprise)
- Top 5 Trade Secret Concerns for Small Businesses (FindLaw Free Enterprise)
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