Gag Clause

What is Gag Clause?

A gag clause is a contractual provision that restricts an individual from disclosing certain information or making public statements about their employer or employment terms. Gag clauses are commonly found in settlement agreements, severance packages, and employment contracts. While they can serve legitimate purposes such as protecting trade secrets, they have attracted scrutiny when used to suppress reports of workplace misconduct, harassment, or discrimination. Some jurisdictions have introduced legislation limiting the enforceability of gag clauses, particularly those that prevent employees from reporting illegal activity.