Keeping Current: SEC Announces First Enforcement Action Involving Restrictive Language in Confidentiality Agreement under Dodd-Frank Whistleblower Program

On April 1, 2015, the SEC announced its first enforcement action under the Dodd-Frank whistleblower program involving restrictive language in an employee confidentiality agreement that it contends has “the potential to stifle the whistleblowing process.” During internal investigations, a company had...

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Bibliographic Details
Published in:Business law today 2015-05, p.1-2
Main Authors: Lundberg, Rikard D., Hogan, Lisa
Format: Magazinearticle
Language:English
Subjects:
Commercial law
Departments
Employment
Federal law
Governing laws clause
Job security
Language
Law enforcement
Laws, regulations and rules
Nondisclosure agreements
Patient confidentiality
Securities and Exchange Commission regulation
Whistleblowing
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Summary:On April 1, 2015, the SEC announced its first enforcement action under the Dodd-Frank whistleblower program involving restrictive language in an employee confidentiality agreement that it contends has “the potential to stifle the whistleblowing process.” During internal investigations, a company had required employee witnesses to execute a form confidentiality agreement prohibiting them from discussing the internal investigations with outside parties without prior approval of its legal department. The agreement further stated that unauthorized disclosure “may be grounds for disciplinary action up to and including termination of employment.”
ISSN:1059-9436
2375-8112