Essay about Recognizing Pros And Pitfalls Of Confidentiality Agreements

1405 Words Oct 11th, 2016 6 Pages
A. Recognizing Pros and Pitfalls of Confidentiality Agreements
Many organizations depend on their proprietary strategies, documents, and research to gain competitive advantage. Confidentiality agreements can be a very effective tool for in-house attorneys to ensure that private information stays private. For that reason, in-house counsel often draft rather comprehensive agreements. Not every whistleblower takes appropriate actions when attempting to assert her claim, and when employees violate confidentiality principles, the company has to be able to enforce its privacy rights. However, in-house counsel has to take care to create confidentiality agreements that will adequately protect the interests of the organization without violating the individual rights of the employee. SOX specifically identifies the recipients to whom protected company information may be disclosed without the possibility of retaliation. Three instances are identified: when protected information is overturned to a federal regulatory/law enforcement agency, Congress, or an employee’s supervisors.
In Tides v. Boeing, the Ninth Circuit Court of Appeals held that the SOX whistleblower provision does not protect employees of publicly traded companies who leak information to the media. Plaintiffs were working as auditors for Boeing’s Corporate Audit organization. The plaintiffs began expressing concerns about potential deficiencies in Boeing’s auditing practices that they interpreted as being SOX violations.…

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