©2023 Seyfarth Shaw LLP www.seyfarth.com 2023 Cal-Peculiarities | 405 20. Miscellaneous Statutory Provisions 20.1 Agreement to Illegal Terms of Employment California makes voidable, as contrary to public policy, various provisions in employment-related agreements, including any settlement agreement provision that prevents the disclosure of “factual information related to a claim” filed in court or in an administrative action and regarding sexual harassment or retaliation for reporting harassment or discrimination,1 any contractual provision that waives a party’s right to testify in a legal proceeding (if required or requested by court order, subpoena or written administrative or legislative request) regarding criminal conduct or sexual harassment on the part of the other contracting party, or the other party’s agents or employees,2 any mandatory term of employment that has the employee release any FEHA claim,3 various covenants not to compete,4 any agreement to have a dispute decided in a non-California forum under non-California law,5 releases of wage claims as to wages indisputably due but not yet paid,6 and any waiver—imposed as a condition of employment, continued employment, or receipt of an employment benefit—of any right, forum, or procedure for a violation of any provision of FEHA or the Labor Code.7 California employers must not require employees or applicants to agree in writing to any condition the employer knows to be unlawful.8 20.2 Choice of Non-California Law or Non-California Forum in Employment Contracts Employers cannot impose on employees who reside and work in California any contractual provision that would either (1) “[r]equire [them] to adjudicate outside of California a claim arising in California” or (2) “[d]eprive [them] of the substantive protection of California law with respect to a controversy arising in California.”9 This law effectively forbids employers from contractually requiring California employees to adjudicate claims outside of California or to submit to the laws of another state, and makes any such provisions voidable by the employees.10 (See § 5.3.) The only exception is where an employee was individually represented by a lawyer in negotiating an employment contract.11 The law provides that any contract that violates these provisions is voidable by the employee. A court may award an employee reasonable attorney fees, among other remedies, for enforcing rights under the act. 12 Section 925 does not affect employment agreements already in effect before January 1, 2017.13
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