The Confidential Contractor Release Agreement is heavily one-sided in favor of Platinum MF LLC dba Verdant Strategies. If you sign this as-is, you will be waiving valuable legal rights for an inadequate settlement ($3,000) while taking on significant risk and restrictions.
1. Major Problems with the Agreement
A. Payment is Inadequate and Not Legally Fair
- $3,000 is a fraction of your claim (~$36,659.77).
- They claim this amount is “more than you are entitled to”, which is false given their contractual breaches and the California Labor Code § 226.8 misclassification penalties ($5,000–$25,000 per violation).
- They fail to include tax considerations for you—if this payment is misclassified as wages, you could face additional tax liabilities.
B. One-Sided Release of Claims
- You waive all rights to sue them (including misclassification, unpaid wages, and termination breaches), but they retain rights to sue you.
- You are releasing claims against everyone (officers, directors, employees, shareholders, etc.), while they give you nothing in return.
- You even waive indemnification rights, meaning if they owe you reimbursement for legal costs, you forfeit that claim.
C. Mandatory Deletion of Negative Feedback
- You must delete all negative online feedback (Upwork and other platforms), but they do not remove your name or work from their site.
- This is a strong indicator they are worried about public exposure—which you can use as leverage.
D. Broad Non-Disparagement Clause (Only Against You)
- You are prohibited from making any negative statements about them, but they retain the right to speak about you however they want.
- This is completely unfair—at minimum, this clause must be mutual.
E. Extreme Confidentiality & Non-Disclosure Requirements
- You are permanently bound to keep the settlement confidential, even from close colleagues and potential legal or business partners.
- If they breach the contract, you still can’t disclose it.
- They can sue you for injunctive relief (court order + monetary damages) if they think you violated confidentiality.
F. No Acknowledgment of Wrongdoing (While You Acknowledge Everything)
- They explicitly state this does not constitute any admission of liability.
- Meanwhile, you must acknowledge that you were fully paid and have no further claims, which contradicts your legal stance.
2. What You Should Demand in a Counteroffer
Your revised release agreement should be fair and mutual, ensuring you are adequately compensated and protected. Here’s what you should demand:
A. Fair Compensation
- Increase settlement offer to at least $25,000, covering:
- Misclassification penalties
- Unpaid wages
- Breach of contract damages
- Improper termination notice period (10 days’ pay)
- Compensation for wrongful nonpayment of work
B. Mutual Release of Claims
- Both parties waive future claims—not just you.
- The release must protect you from any claims they might try to file against you (e.g., fraud claims regarding Invoice #193).
C. Mutual Non-Disparagement
- They cannot talk negatively about you either.
- If they breach this and make any negative statements about you, the agreement is void.
D. Limited Confidentiality
- You must be allowed to discuss general experiences regarding misclassification (without naming them).
- You must be allowed to disclose settlement terms to tax advisors, attorneys, and regulatory agencies.
E. Removal of Your Work & Name
- They must remove your name, bio, and content from their website and marketing materials.
- They must confirm in writing that your intellectual property has been removed.
F. Payment & Tax Protections
- Payment must be made within 10 business days (no delays).
- The settlement must be classified as a 1099 non-wage payment so you don’t face unexpected tax liabilities.
- They must cover any tax penalties if the IRS reclassifies the settlement.
3. Next Steps
- Upload your first draft response so I can refine it with these demands.
- I will rewrite their contract into a fair version that protects your interests.
- If they refuse to negotiate fairly, you can:
- Escalate to California’s labor board (DLSE) for misclassification penalties.
- Report them to the IRS for employment tax violations.
- File a lawsuit and seek higher damages.
This employer is clearly afraid of exposure—use that leverage.
