SpaceX included an NDA when it settled a sexual misconduct claim against Elon Musk. California banned many such agreements, but experts say Musk's may be enforceable anyway.

The use of non-disclosure agreements for sexual harassment and assault cases was banned by a California state senator in the early days of the #MeToo movement. Harvey Weinstein and other abusers used these agreements to silence their victims and continue their behavior.

The bill was signed into law just months before Musk and his rocket company entered into a severance agreement with a flight attendant who had accused the billionaire CEO of sexual misconduct. The agreement had an agreement with a non-disclosure agreement.

According to documents and interviews, the woman accused Musk of exposing his erect penis to her, touching her without consent, and requesting an erotic massage in exchange for a horse. Musk denied any wrongdoing. Christopher Cardaci, vice president of legal, previously told Insider he wouldn't comment on settlement agreements.

The non-disparagement and non-disclosure clauses in the severance agreement prevented the woman from revealing anything about Musk and his businesses after she left the company, Insider reported.

The STAND Act was meant to be a bulwark against such non-disclosure agreements. It has its limits.

The STAND Act doesn't retroactive meaning that any NDAs signed before it was passed are still valid.

Insider previously reported that the former flight attendant's claims were settled without being filed in a lawsuit. Most of these kinds of claims never make it to court.

Halim Dhanidina, a former California judge, said that the STAND Act can make it harder for employees to settle.

If I file my lawsuits, it will be much harder to reach a settlement.

Laws like the STAND Act give victims of misconduct a bargaining chip, because it becomes harder to buy their silence once they go to court, according to a California employment lawyer.

Dhanidina told Insider there is a potential loophole. In court or administrative proceedings, a settlement can include a non-disclosure agreement.

The only way you will get anything out of me is if you request a non-disclosure agreement, according to Dhanidina. It cannot be imposed on the weaker party.

If Musk and SpaceX wanted to, they could release anyone who had signed an NDA from the obligation to remain silent. If you break an agreement, you can be sued for breaching the contract.