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Are Nondisparagement Agreements Silencing Employee Complaints? (cnbc.com)

cdreimer writes, "According to a report in the New York Times, 'nondisparagement agreements are increasingly included in employment contracts and legal settlements' to hide abuses that would otherwise be made public." The Times reports: Employment lawyers say nondisparagement agreements have helped enable a culture of secrecy. In particular, the tech start-up world has been roiled by accounts of workplace sexual harassment, and nondisparagement clauses have played a significant role in keeping those accusations secret... Nondisparagement clauses are not limited to legal settlements. They are increasingly found in standard employment contracts in many industries, sometimes in a simple offer letter that helps to create a blanket of silence around a company. Their use has become particularly widespread in tech employment contracts, from venture investment firms and start-ups to the biggest companies in Silicon Valley, including Google... Employees increasingly "have to give up their constitutional right to speak freely about their experiences if they want to be part of the work force," said Nancy E. Smith, a partner at the law firm Smith Mullin.
Three different tech industry employees told the Times "they are not allowed to acknowledge that the agreements even exist." And Google "declined to comment" for the article.

27 of 188 comments (clear)

  1. No by Anonymous Coward · · Score: 5, Funny

    Is all I am allowed to say.

    1. Re: No by tysonedwards · · Score: 2

      Is an offer letter a golden handcuff? What truly makes said valuable thing of not being homeless and able to eat at least once every other day Golden?

      --
      Thirty four characters live here.
    2. Re:No by drinkypoo · · Score: 5, Insightful

      The simple, obvious solution is not to work for companies that have such an agreement.

      So what do you say to someone who has offers only from such companies? Live on the street and starve?

      --
      "You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
    3. Re: No by BarbaraHudson · · Score: 3, Insightful

      If those are the only two choices available, then it's pretty obvious that you are not completely free in your choices. Don't try to justify mistreatment of workers because "we're the only choice they have."

      If those are the only two choices, your economy is broken. Economic serfdom or starvation being the only two options for anyone is simply dysfunctional, and ultimately contributes to the breakdown of social cohesion and the rise of crime.

      --
      "Transparent" is a shit show that trades on every stereotype going. A man in drag is NOT a transsexual.
    4. Re:No by Jason+Levine · · Score: 2

      I almost didn't want to reply because on slashdot it is *well known* that first amendment protections only restrain the *government*, not private enterprises. Nothing stops a private person or corporation or whatever from attempting to limit your free speech.

      True, but I would think that there would be laws to prevent corporations from limiting employees' freedoms outside of the office. Suppose you wanted to volunteer to help the campaign of John Smith, but your company didn't like his platform. If they forbid any employee from helping or supporting John Smith in any way, would that be legal? What if they amended their employment contract and anyone who didn't agree to it was immediately terminated? What if the new contract said you would donate time/money to John Smith's opponent? Could a company legally tell you that you must support one political candidate over a second one? It seems like that would be a violation of the employee's fundamental right to support whichever candidate they like - even if these rights typically apply to government and not companies.

      I can understand companies not wanting employees to speak "as a representative of the company," but there's got to be a line between the company's right to maintain a certain work environment and the employee's natural rights as citizens.

      --
      My sci-fi novel, Ghost Thief, is now available from Amazon.com.
  2. Nothing to see here by Arzaboa · · Score: 2

    I can't talk about it.

  3. Double Down by Anonymous Coward · · Score: 5, Insightful

    Ann Lai, a former employee, said in her lawsuit filed in San Mateo Superior Court in California that she had complained to her bosses about sexism, discrimination and inappropriate behavior in the workplace, and that Binary used the nondisparagement provision in her employment contract to threaten her and prevent her from talking about why she had quit her job.

    If these threats come in, it is time to double down.

    Call the police to report the sexual harassment AND file a lawsuit.
    Both of these (reporting a crime to the police and filing a lawsuit) are immune to any silly non-disparagement clause.

    An anonymous tip to local and national media reporters about the court docket where the case was filed?
    That's just the icing on the cake.

    1. Re:Double Down by Kraven9 · · Score: 2, Insightful

      AC calling for people to bravely expose themselves on principle. Just another loudmouthed idiot on /.

    2. Re:Double Down by SumterLiving · · Score: 2

      A very public "Nondisparagement Agreement" database could be created. There are people who actually need jobs who have little choice in signing a silly agreement. Knowing which companies that mandate them before applying for the job would save everyone a lot of time and effort. Plus, I wouldn't buy from any company that would squash an employee voice any more than I would if they required a customer to sign the "NA." No wonder brand loyalty and employee/employer loyalty seem to not be a thing.

    3. Re:Double Down by Pollux · · Score: 5, Insightful

      Call the police to report the sexual harassment AND file a lawsuit.

      Say someone did. These are only allegations made against the employer. Nothing is proof of fact.

      Then when it comes to the lawsuit, corporate will bring its high-priced lawyers who are paid to know everything about corporate law. Up against that Goliath, most everyone chooses to settle. And in that settlement agreement? A non-disclosure clause.

      So when the New York Times tries to write a story about what happened, all they can say was "According to public records, an allegation was made against the employer. A settlement was reached regarding the allegation. Neither side is commenting on the matter."

  4. Discourage, rather than enforce by gurps_npc · · Score: 3, Insightful

    These types of agreements are always about the threat rather than the act.

    That is, they exist not to actually stop people from reporting, but instead to discourage them. No reasonable judge would let you sue someone for reporting a crime.

    But most of the time it is not entirely clear their is enough evidence of a crime going on, not until after the trial has begun.

    So when your boss fires you after verbally demanding sex, you will think twice about suing, because you know that if you can't prove it, they might go after you. Honestly, chances are very low they would sue you for speaking out and even less that they would succeed.

    But the threat of the law suit is enough to stop you from trying, at least unless you have a smoking gun email. (and now adays it is almost always an email.).

    --
    excitingthingstodo.blogspot.com
  5. Re: Hey Sherlock : by Anonymous Coward · · Score: 2, Interesting

    The more secrets a society has the worse life is for all. Secrets are not supposed to be how you do business; we need more whistleblower protection, not less.

  6. I can hear it now... by Frosty+Piss · · Score: 2

    I'm going to predict a lot of people here saying "I would never work such a place" or "I would never sign such an agreement" ...

    Let me just say bull shit, when you need a job you will work such a place and sign such an agreement.

    But I wouldn't really care because like a lot of things, for all practical purposes, these types of agreements are unenforceable.

    --
    If you want news from today, you have to come back tomorrow.
    1. Re:I can hear it now... by mvdwege · · Score: 3, Insightful

      For all practical purposes, they are very enforceable.

      If a company with all its resources decides to sue a single individual, it's a foregone conclusion. Unless they manage to find a backer with deep pockets, they'll be ruined fighting the suit, no matter the fact that the judge might throw it out. By the time it would have come to a hearing they'd already be in deep shit.

      --
      "I know I will be modded down for this": where's the option '-1, Asking for it'?
  7. Who said anything about a crime? by Roger+W+Moore · · Score: 5, Insightful

    No reasonable judge would let you sue someone for reporting a crime.

    What guarantee do you have that you'll get a reasonable judge? Besides, who said anything about a crime? It is entirely possible for companies to engage in highly unethical, but completely legal, activity e.g. hiring child labourers in third world sweat shops to make their products which now does not happen because it was brought to the publics attention. Zero hour contracts are another example.

    Large companies are beginning to have as much power over our lives as governments and this means that they need to start having the same limits on that power as a government.

  8. Why even ask the question? by hyades1 · · Score: 3, Insightful

    Are Nondisparagement Agreements Silencing Employee Complaints?

    If they're working as intended, yes. Of course they are. That's their purpose.

    --
    I've calculated my velocity with such exquisite precision that I have no idea where I am.
  9. Right ot not right? by petes_PoV · · Score: 5, Insightful

    Employees increasingly "have to give up their constitutional right to speak freely about their experiences if they want to be part of the work force,"

    It would seem that the U.S. has a pretty poor constitution if it can be superceded by contract law.

    Isn't the whole point of a country's constitution that it stands above all "lesser" principles and laws.

    --
    politicians are like babies' nappies: they should both be changed regularly and for the same reasons
    1. Re:Right ot not right? by AK+Marc · · Score: 4, Insightful

      It can't be superseded by contract law, but raising the constitutional issue is beyond the finances of a wage-earner, so the contract wins.

    2. Re:Right ot not right? by swb · · Score: 4, Interesting

      The role of the Constitution's free speech rights is to limit the ability of the government to infringe on speech. It doesn't have any influence on speech not involving the government. So private parties are free to negotiate contracts limiting what they will say and to whom, and thus you have NDAs and non-disparagement clauses and even civil settlements where the parties agree not to disclose the settlement terms.

      I think there's a more general civil rights argument to be made that there should be limits on corporations ability to limit free speech in some circumstances.

      Employer-employee relationships are inherently unbalanced and somewhat coercive, so I would bar non-disparagement agreements. You're not required by force of law to sign them, but for most people not signing them has substantial economic and career penalties which reduces most people's freedom to act.

      I would also require that large public spaces that are privately owned (like malls) should be required to accommodate public protest. We're rapidly losing truly public spaces ("the town square") and replacing them with privately owned versions of them. More nefariously, these large developments are often underwritten by local government in some way (bonds, TIF, paying for infrastructure upgrades like roads and sewers).

    3. Re:Right ot not right? by Solandri · · Score: 3, Interesting

      The problem isn't that corporations are demanding unreasonable things. The problem is that people just don't give a damn. Ideally people would tell an employer demanding a non-disparagement agreement to go take a hike. You assume the ideal must be true, so you assume the only way people would sign their rights away is if they're coerced. But employers don't have to coerce employees to sign non-disparagement agreements. People think of the situations where the agreement would kick in, and they're so rare that they think nothing of signing it. The exact same thing is happening in the privacy front. People are willingly trading their personal info for free web space and email service.

      Thomas Jefferson said " the tree of liberty must be refreshed from time to time with the blood of patriots & tyrants." People concentrate on the "blood" part and assume it to mean that we must be willing to fight and die against tyrants who would take away our freedoms. I'm starting to think the "time to time" part is more important. If people don't occasionally experience living under tyranny, they grow complacent, start taking their freedoms for granted, and think nothing about signing them away. Only if you've had to fight and die for those freedoms do you truly appreciate their value.

  10. Re:Next... by Hognoxious · · Score: 3, Funny

    He collided with Bennett Haselton and collapsed into a singularity of self-important hot air.

    --
    Confucius say, "Find worm in apple - bad. Find half a worm - worse."
  11. This matches exactly my experience from 2009 by Anonymous Coward · · Score: 5, Interesting

    ...except it was a severance agreement. I'd been fired, and there was a reasonably decent (6 weeks of pay) severance agreement. However, it included both the clause that I would never ever make an disparaging statement about the company, nor that I would admit the existence of this severance agreement or disclose any terms in it. This was for a small (few hundred employee) tech company in San Francisco.

    I pushed back. I thought it was completely unreasonable to give up a part of my freedom of speech for this. At the time, I thought I might stay in the same general field (I haven't), and it would have been very constraining to never be able to criticize this company again. But, also, on principle, I did not like signing away my freedom of speech like that. What makes me sad is that almost everybody I talked to told me not to be ridiculous, to sign it. I was potentially giving up four weeks of severance pay (beyond the "two week notice" requiredby law), at a time when I'd just been fired and had no other job lined up. I was told by friends that it was irresponsible not to think about my wife and my own economic need for a stupid stand on principle. This makes me so sad, because at least nominally it was exactly these kinds of principles -- freedom of expression -- on which this country was supposedly founded. But, now, people find it childish and unrealistic to stand on principle.

    I didn't have any serious complaints about the company at the time. Over the previous ~year it had undergone some reorganization that I thought was destructive, and I thought the circumstances leading up to my firing were particularly stupid, but I didn't have any sexual harassment complaints or anything like that. But, still, just because you don't have a big issue right now does not mean you should sign away a fraction of your freedom of speech for all time.

    The other sad thing was that at one point, somebody from HR told me on the phone, "we're not trying to limit your freedom of expression, we just want you to manage your communication". People in the corporate world really believe things like this, which is rather alarming.

    In the end, I managed to convince them to change it to "no disparaging statements for a year, no untrue disparaging statements ever". I decided I could live with that. Technically, I'm breaking the agreement right now by talking about it, which is why I post anonymously and don't name the company. I think that's stupid too, but I also know more than to risk putting myself up against the lawyers of even a small company.

    1. Re:This matches exactly my experience from 2009 by LeftCoastThinker · · Score: 2

      Or you go hardball with them and get a copy of the agreement and then tell them that either they strip out the language or you will go to the press and tell the 10 o'clock news that they are anti freedom of speech and trying to violate laid off employees first amendment rights and holding their severance packages hostage. Most companies fear bad press to begin with (which is why the clause was in there to begin with). My response has and always will be any contract beyond a standard NDA ends the day they stop paying me, as that is clearly the extent of our relationship.

      --
      If you disagree, please post your argument. (-1, Overrated) isn't your personal censorship tool for views you don't like
  12. Happened to me by Andy+Smith · · Score: 2

    I had to sign one of these things when I left a company. They withheld wages until I signed. Totally illegal of course, but I needed the money.

  13. Pathetic by LeftCoastThinker · · Score: 2

    Apparently we need a US Supreme Court ruling (again?) that you cannot sign away your constitutional rights, and all of these contracts are abusive. It would also be nice to have a federal law that says that any contract found to be abusive of constitutional laws in court is not only void, but also automatically awards the victim $100k per abusive clause, with no limit on damages. As soon as the cost outweighs the benefit, businesses will stop this bullshit. It's the same thing as non-competes.

    --
    If you disagree, please post your argument. (-1, Overrated) isn't your personal censorship tool for views you don't like
  14. The agreements aren't the problem by russotto · · Score: 2

    If you've got dirt on a company and you start disparaging them, the only thing them suing you to silence you is going to do is to get all the dirt out and convince everyone involved it's true. The problem is that if you disparage a former employer, you risk making yourself unemployable. If you make a big enough splash to affect them, chances are everyone in the industry will hear about it, and you'll be known as trouble. If you don't make a big enough splash to affect them, why bother?

  15. Don't sign them by p0larity · · Score: 2

    Give the contract back, with the non-disparagement clause stroked out.

    Tell them you won't sign away your rights.

    Find a better job.

    If they still want you, and delete the clause, great! If not... see ya, suckas. I don't want to work for you anyway.