Paresh Dave

(Reuters.) California won’t allow companies to require non-disclosure agreement in settlements of employees over claims about workplace harassment. The law was signed into law by the California legislature on Thursday. It is a win for workers in tech who supported this proposal.

Ifeoma Ozoma cosponsored the Silenced No More Act. Ozoma quit Pinterest (NYSE:) Inc) in 2012 after raising concerns about gender- and racial discrimination. Other organizations, such as TechEquity Collaborative which advocate for workers within tech, also supported the initiative.

The law will go into effect January 1. Supporters claim it will allow workers to voice their experiences with harassment and discrimination, without the fear of companies ripping up severance plans. Their belief is that allowing employees to address issues at work publicly could curb racism and help companies avoid other serious problems.

New law states that settlement agreements can’t prevent workers from disclosing information about harassment or discrimination allegations they file against the company. The law also prohibits settlements from containing non-disparagement provisions that prevent employees from discussing unlawful workplace acts.

California lawmakers banned non-disclosure agreements from companies in situations of sexual harassment and sexual assault three years ago. They did so because they were concerned that companies might use secret deals to perpetuate problematic culture.

This law provides greater confidentiality protection in cases involving racial discrimination or harassment based upon disability.

Ozoma said last year that, as a Black woman working at Pinterest, she was ignored by some managers and paid less. According to supporters, the law will hold businesses accountable for fulfilling their commitments to offer an inclusive and diverse work environment.

Pinterest signed up as a supporter for the legislation.