Whistleblowers hindered by nondisclosure agreements [photo by Tony Webster/CC]
Corporate Gag Orders Have a Chilling Effect on Whistleblowers
Washington Post investigation reveals corporations are trying to prevent employees from reporting wrongdoing
Corporations are using overly broad and limiting nondisclosure agreements to prevent employees from reporting wrongdoing or fraud to government officials, according to an investigation published in the Washington Post on Monday.
Lawyers representing whistleblowers say the agreements, being used by defense contractors and hedge funds among other employers, contain language that goes beyond protection of trade secrets.
"There has been a shift from the traditional, sweeping gag orders to more disingenuous variations of these agreements," Tom Devine, legal director of the Government Accountability Project, told Washington Post reporters Scott Higham and Kaley Belval. "The techniques are becoming much more sophisticated, but they have the same chilling effect."
The 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act, which established the Office of the Whistleblower at the Securities and Exchange Commission, also created a bounty program at the SEC to pay whistleblowers. The Post investigation, however, revealed that some nondisclosure agreements prohibit whistleblowers from reaping such financial rewards for their actions.
An Urgent Message From Our Co-Founder
Dear Common Dreams reader, The U.S. is on a fast track to authoritarianism like nothing I've ever seen. Meanwhile, corporate news outlets are utterly capitulating to Trump, twisting their coverage to avoid drawing his ire while lining up to stuff cash in his pockets. That's why I believe that Common Dreams is doing the best and most consequential reporting that we've ever done. Our small but mighty team is a progressive reporting powerhouse, covering the news every day that the corporate media never will. Our mission has always been simple: To inform. To inspire. And to ignite change for the common good. Now here's the key piece that I want all our readers to understand: None of this would be possible without your financial support. That's not just some fundraising cliche. It's the absolute and literal truth. We don't accept corporate advertising and never will. We don't have a paywall because we don't think people should be blocked from critical news based on their ability to pay. Everything we do is funded by the donations of readers like you. The final deadline for our crucial Summer Campaign fundraising drive is just days away, and we’re falling short of our must-hit goal. Will you donate now to help power the nonprofit, independent reporting of Common Dreams? Thank you for being a vital member of our community. Together, we can keep independent journalism alive when it’s needed most. - Craig Brown, Co-founder |
Corporations are using overly broad and limiting nondisclosure agreements to prevent employees from reporting wrongdoing or fraud to government officials, according to an investigation published in the Washington Post on Monday.
Lawyers representing whistleblowers say the agreements, being used by defense contractors and hedge funds among other employers, contain language that goes beyond protection of trade secrets.
"There has been a shift from the traditional, sweeping gag orders to more disingenuous variations of these agreements," Tom Devine, legal director of the Government Accountability Project, told Washington Post reporters Scott Higham and Kaley Belval. "The techniques are becoming much more sophisticated, but they have the same chilling effect."
The 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act, which established the Office of the Whistleblower at the Securities and Exchange Commission, also created a bounty program at the SEC to pay whistleblowers. The Post investigation, however, revealed that some nondisclosure agreements prohibit whistleblowers from reaping such financial rewards for their actions.
Corporations are using overly broad and limiting nondisclosure agreements to prevent employees from reporting wrongdoing or fraud to government officials, according to an investigation published in the Washington Post on Monday.
Lawyers representing whistleblowers say the agreements, being used by defense contractors and hedge funds among other employers, contain language that goes beyond protection of trade secrets.
"There has been a shift from the traditional, sweeping gag orders to more disingenuous variations of these agreements," Tom Devine, legal director of the Government Accountability Project, told Washington Post reporters Scott Higham and Kaley Belval. "The techniques are becoming much more sophisticated, but they have the same chilling effect."
The 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act, which established the Office of the Whistleblower at the Securities and Exchange Commission, also created a bounty program at the SEC to pay whistleblowers. The Post investigation, however, revealed that some nondisclosure agreements prohibit whistleblowers from reaping such financial rewards for their actions.