U.S. Regulators Increase Scrutiny of Severance Agreements
The Wall Street Journal
November 4, 2014
Jordan A. Thomas labels employee non-disclosure agreements as "a really big problem"
"Beyond the SEC, FINRA issued a note in which they provide guidance to their people saying these sorts of agreements are problematic," said Jordan Thomas, chair of the whistleblower practice at law firm Labaton Sucharow. "Whistleblowers are leading a quiet revolution in securities enforcement."
"It's a really big problem," said Mr. Thomas. "These agreements limit not only their ability to speak to the SEC but they prohibit employees from sharing the agreement itself or disclosing terms of the agreement with anyone," he said. Without an exemption to allow workers to speak to the government, "confidentiality agreements impede people from going to the government and the additional provision says they can't tell anyone about it."