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Recent news regarding complaints of sexual harassment by several former female employees of the now-called Washington Football Team (formerly known as the Washington Redskins) has reignited the conversation on workplace misconduct and the use of nondisclosure agreements. This incident has renewed discussions on the impact of nondisclosure agreements in the settlement of workplace discrimination and harassment claims, which have increased in the entertainment industry in recent years.
Employers include nondisclosure provisions in a variety of employment documents often linked to the commencement or termination of an employee's employment. For example, nondisclosure agreements can commonly be found in employment agreements where the employee agrees not to disclose a company's confidential or proprietary information. These agreements are extremely valuable to employers, such as those in the highly competitive entertainment industry, who entrust their trade secrets to employees and wish to keep such information secret to remain competitive.
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