Exchange Act Rule 21F-17, adopted in 2011 under the auspices of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, prohibits any person from taking any action to impede an individual from communicating directly with the SEC, including by “enforcing, or threatening to enforce, a confidentiality agreement . . . .” The SEC has prioritized enforcing this rule expansively, by requiring employers to provide SEC-specific carveouts to policies and agreements governing confidentiality. According to an Order issued last week against The Brink’s Company ( “Brink’s” or “Brinks”), the SEC seems to suggest that employers must provide a specific carveout in restrictive covenant agreements permitting employees and former employees to report information to the SEC in addition to the statutory disclosure provided for in the federal Defend Trade Secrets Act (DTSA).
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Recent Updates
- Health Care Non-Competes: 2025
- Wyoming Joins the List of States Banning Some Noncompete Agreements
- Arkansas Prohibits Noncompetes for Physicians
- New York State Proposes Bill to Ban Noncompetes Except for Highly Compensated Workers and in Sales of Businesses
- Texas Joins List of Legislatures Seeking to Ban Noncompete Agreements