If you work for a company in New York that has a contract with the federal government, you probably signed a non-disclosure agreement (NDA). This document warns you against revealing confidential company information.
While valid, it raises a question: if you uncover fraud or gross mismanagement involving taxpayer money, is your NDA an enforceable gag order? The answer lies in understanding federal and state laws.
Your federal shield against gag orders
Your employer can use an NDA to protect trade secrets, but they cannot use it to forbid you from reporting to government agencies. Federal whistleblower protection laws prohibit employers from doing so, as it impedes transparency. However, this protection depends on the statute and the type of alleged wrongdoing.
In NDAs, employers must clearly include exceptions. These should state that an employee is free to report suspected wrongdoing to a government agency. If your employer attempts to silence you with the NDA or threatens you with termination, you have grounds for filing a lawsuit against them.
New York’s stance on confidentiality
New York supports this federal protection. Under the General Obligations Law 5-336, employers cannot include clauses in agreements that stop you from participating in a government investigation. Although this statute primarily focuses on workplace discrimination and harassment, it also reinforces that NDAs should not be used to cover up illegal activity.
Facing the legal risk with the right help
Whistleblowing is a brave act, but interpreting NDAs and navigating federal protection laws can be complex. Even if the law is on your side, your employer may still threaten to enforce the agreement to intimidate you.
Before you take the next step, you need clarity on your rights and the best reporting strategy. Talking to an attorney can offer crucial insights into the legal process with your concerns in mind.