Employee Secrecy Pacts Don't End Whistleblower Threat

By Dietrich Knauth (August 15, 2014, 6:54 PM EDT) -- Although some regulators and lawmakers have expressed concerns about companies attempting to silence potential relators with nondisclosure agreements, attorneys on the defense side say that such employee agreements can rarely inoculate a company from False Claims Act allegations.

Contractors' nondisclosure agreements have been the subject of recent discussion by lawmakers, regulators and advocacy groups, and the Washington Post has run recent stories on agreements used by KBR Inc. and International Relief & Development.

Recent debate on the topic has focused on the potential suppression of whistleblowers and False Claims Act relators, obscuring some of the legitimate and legal reasons why companies...

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