That’s because there isn’t an ethical dilemma here, on the part of the employee. The unethical action here is insisting on such an agreement in the first place

That’s because there isn’t an ethical dilemma here, on the part of the employee. The unethical action here is insisting on such an agreement in the first place. Obeying or honoring an unethical agreement is what’s highly unethical; as it permits the abusive behavior. Hence California’s law.