Non-disclosure agreements are a routine feature of entertainment industry work — actors, writers, directors, and crew members sign them constantly, covering everything from plot details to salary terms. But the legal landscape governing what an NDA can and cannot require an entertainment worker to stay silent about has changed dramatically in recent years. California has enacted some of the strongest NDA limitations in the country, and understanding those limits is essential for anyone working in the industry.

What Is a Non-Disclosure Agreement in the Entertainment Context?

In the entertainment industry, NDAs typically arise in several distinct contexts:

  • Production NDAs — signed at the start of a project, covering plot details, casting, scripts, production schedules, and other confidential information about an unannounced production
  • Employment NDAs — included in employment agreements or deal memos, covering salary terms, proprietary business information, and internal company matters
  • Settlement NDAs — signed as part of a settlement agreement resolving a dispute, often covering the facts of the dispute and the settlement amount
  • Departure agreements — signed when leaving a studio or production company, covering internal information and the terms of departure

Each type of NDA raises different legal questions and is subject to different California statutory limitations.

The Silenced No More Act — SB 331

California's SB 331, known as the Silenced No More Act, became effective January 1, 2022, and significantly expanded restrictions on what NDAs in employment and settlement contexts can prohibit. Under SB 331, which amended California Code of Civil Procedure Section 1001 (full text)(Current as of 2026. Laws are subject to legislative change.):

  • Settlement agreements cannot prevent a claimant from disclosing factual information relating to claims of sexual harassment, sexual assault, workplace harassment or discrimination, or retaliation
  • This protection covers harassment and discrimination based on any protected characteristic under FEHA — not just sex or gender
  • Settlement agreements that restrict these disclosures are void and unenforceable to the extent they prohibit such disclosures
  • An employer cannot condition a settlement on the claimant's agreement to a prohibited NDA provision

What SB 331 does not prohibit: Settlement agreements may still require confidentiality regarding the amount of a settlement payment, upon the claimant's request. They may also prohibit disclosure of information that does not relate to the factual basis of the harassment or discrimination claims — such as genuinely proprietary business information or the identity of uninvolved third parties.

The Federal SPEAK OUT Act

The federal SPEAK OUT Act, signed into law in December 2022, prohibits pre-dispute NDAs — meaning NDAs signed before any harassment or assault has occurred — from being used to silence victims of sexual harassment or assault in any subsequent legal proceeding. This applies to entertainment industry contracts that include pre-dispute NDA provisions as standard terms.

The practical effect: a standard production NDA signed before a harassment incident cannot be used to prevent disclosure of that harassment in a subsequent lawsuit or legal proceeding. The NDA remains valid for its legitimate purposes — protecting plot details and trade secrets — but its reach does not extend to covering up harassment that occurs after signing.

What an Entertainment NDA Can Legitimately Cover

Notwithstanding the limitations above, entertainment NDAs can lawfully require confidentiality regarding:

  • Unannounced project details — scripts, plot developments, casting, production schedules
  • Proprietary production methods, technology, and business processes
  • Internal financial information, budgets, and studio business strategy
  • The amount of a settlement payment (when the claimant requests confidentiality)
  • Personal information about third parties not involved in the claim
  • Genuinely confidential business information unrelated to harassment or discrimination

What an Entertainment NDA Cannot Cover Under California Law

California law — particularly SB 331, earlier legislation including SB 820 (2018), and FEHA's anti-retaliation provisions — makes the following NDA provisions unenforceable:

  • Provisions preventing reporting of sexual harassment or assault to a government agency, law enforcement, or legislative body
  • Provisions preventing cooperation with a government investigation
  • Provisions requiring silence about the factual basis of a harassment, discrimination, or retaliation claim in a settlement context
  • Provisions preventing disclosure to an attorney for the purpose of obtaining legal advice
  • Provisions requiring a claimant to affirmatively state that they were not harassed or discriminated against
  • Provisions preventing a worker from discussing harassment or discrimination with other potential victims or witnesses

NDA Violations and Retaliation

A critical concern for entertainment workers is whether a studio or production company will sue them for breach of an NDA if they speak out. Under California Labor Code Section 1102.5 (full text)(Current as of 2026. Laws are subject to legislative change.) and FEHA's anti-retaliation provisions, an employer who sues — or threatens to sue — an employee or contractor for disclosures that are legally protected may itself be engaging in unlawful retaliation.

This means that a studio's attempt to enforce an NDA against someone who reported harassment to the CRD or law enforcement could create a separate retaliation claim against the studio. The threat of an NDA enforcement lawsuit does not make the disclosure unlawful if the disclosure was legally protected.

Reviewing an NDA Before You Sign

The best time to address an NDA's limitations is before signing — not after. Key provisions to scrutinize in any entertainment industry NDA include:

  • Scope of confidentiality — does the agreement purport to cover all communications about your employment, or is it limited to specific categories of information?
  • Government agency carve-out — does the agreement explicitly preserve your right to report to government agencies? If not, that provision may be unenforceable anyway, but its absence is a red flag
  • Non-disparagement clauses — broad non-disparagement clauses that prohibit any negative statements about the company or its executives can conflict with your right to discuss harassment or discrimination
  • Clawback provisions — some NDAs attempt to require return of settlement payments if the NDA is violated. The enforceability of such provisions against protected disclosures is legally questionable
  • Choice of law — an NDA that purports to apply non-California law to a California worker's employment relationship may not be enforceable as written

Frequently Asked Questions

I signed an NDA five years ago. Does SB 331 apply retroactively?

SB 331 applies to agreements entered into on or after January 1, 2022. For NDAs signed before that date, earlier California law and prior statutory protections apply — including provisions of SB 820 (2018) that prohibited NDAs from concealing sexual harassment claims. An attorney can review your specific agreement and advise which statutory protections apply to your situation.

Can a studio require me to sign a new NDA after I report harassment?

No. An employer cannot condition continued employment, reinstatement, or any employment benefit on signing an NDA that violates California law. Conditioning employment on signing a prohibited NDA is itself a form of retaliation and coercion that is actionable under FEHA and Labor Code Section 1102.5.

My NDA has a liquidated damages clause of $1 million if I breach it. Am I really exposed to that?

Liquidated damages clauses in NDAs are enforceable only if the amount is a reasonable estimate of actual damages at the time of signing — not a penalty designed to deter disclosure. Courts have refused to enforce liquidated damages clauses in NDAs that purport to penalize legally protected disclosures. An overly punitive liquidated damages provision may itself be evidence that the NDA was designed to suppress rather than protect legitimate confidential information.

Does my NDA prevent me from testifying in another person's lawsuit?

No. NDAs cannot prevent testimony in legal proceedings. A subpoena overrides any contractual confidentiality obligation. Additionally, California law prohibits NDAs from preventing cooperation with official investigations or proceedings. An NDA provision purporting to prohibit testimony or limit cooperation with legal proceedings is unenforceable.

I want to tell my story publicly. Can I do that despite my NDA?

Public disclosure — through media interviews, books, social media, or public statements — is a different question from government reporting. Depending on the terms of your NDA and the applicable California law, public disclosure of settlement facts or confidential business information may still be restricted even if reporting to a government agency is protected. This is an area where the specific language of your agreement and the dates involved matter significantly. Consulting with an attorney before any public disclosure is essential.

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Questions About Your NDA or Confidentiality Agreement?

Understanding what your NDA does and does not require you to keep confidential — and when its provisions may be unenforceable under California law — requires careful review of the specific agreement. Eagan Law advises entertainment industry clients on NDA enforceability, employment disputes, and harassment claims throughout Los Angeles and Santa Monica.

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ATTORNEY ADVERTISING: This blog is maintained by Todd Eagan of Eagan Law Corporation for informational purposes only and is not legal advice. Eagan Law Corporation is located in Santa Monica, Los Angeles County, California. Reviewing this blog or contacting the firm does not create an attorney-client relationship. Every case is different; prior results do not guarantee a similar outcome. Case results described on this blog depend on the facts of that specific case and do not constitute a guarantee, warranty, or prediction regarding the outcome of your legal matter. This post provides general information about California law and is not intended as legal advice for your specific situation. Every workplace dispute is unique, and the law applies differently based on specific facts and industry-specific exemptions. Legal claims in California, including PAGA notices and DFEH/CRD complaints, are subject to strict filing deadlines (statutes of limitations). Failure to act within these windows may result in the permanent loss of your right to sue.