SEC Sends Sharp Warning With Employee-Contract Case
Christopher Stief was quoted in Ignite on April 3, 2015. The article “SEC Sends Sharp Warning With Employee-Contract Case” discussed how the SEC sent a clear message this week with an enforcement action against KBR that the agency expects companies of all stripes to make sure employees know that confidentiality agreements do not restrict them from going to regulators if they suspect the securities laws have been broken.
The regulator will examine confidentiality provisions within a wide range of policies and documents, including non-compete and settlement agreements, personnel manuals and compliance manuals, said Chris. As a result, companies should be reviewing all such documents, he added.
Other government agencies have also stepped up their focus on this area, including the Equal Employment Opportunity Commission and the National Labor Relations Board, he said.
“The government wants to look pretty carefully at your confidentiality agreements, and they will take any opportunity to do so,” Chris said.
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