Nondisparagement Safeguards Seen as Vital To Protecting Employers' Long-Term Interests

Atlanta partner Joe Shelton was quoted in the April 9 Bloomberg BNA article "Nondisparagement Safeguards Seen as Vital To Protecting Employers' Long-Term Interests." The article reported on how recent highly publicized legal battles among global figures in finance and business are reinforcing the need for nondisparagement agreements to make sure exiting employees will not disparage the employer or its products or personnel. Joe noted: "When disagreements in the corporate world happen, no matter how 'trivial' it may sound to you…the potential for damage is more than personal or private. The smart human resources operator can learn from this, and keep a step ahead of the issue." When an employee signs a nondisparagement agreement, the contract commits them to refrain from making any derogatory or disparaging references regarding the company or its employees. Typically, employees sign such agreements on their way out the door in connection with severance or separation agreements. A former employee breaking such a promise, opens the door to the employer to take action to protect itself, he said.