A follow up on the employee whistleblower lawsuit against Snap. Snap responded to the employee’s complaint with a request to the judge to send the matter into arbitration. If the request is granted, Snap will fight the claim in a private forum away from the public eye. A well-written arbitration clause is a powerful tool for an employer fighting an employee’s allegations. But, these clauses are strictly enforced in California and must be fairly applied to employees.
Whistleblower complaints by terminated executives continue to be a significant source of liability for employers. Chicago State University just settled claims that it retaliated against its former CFO for $1.3 million. The University allegedly terminated the CFO for reporting wrongdoing by the CEO. Employers of all sizes must have policies in place to address whistleblower complaints and must refrain from retaliating against employees for legitimate whistleblower activity.
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A recently filed lawsuit alleges that Google forces its employees to sign illegal confidentiality agreements and restricts employee rights as “whistleblowers.” Google now faces the possibility of penalties for each violation and an attorneys’ fees award against it. Employers should ensure that they have well-written employment policies that conform to federal and state law and provide proper guidance to their employees. As the Google lawsuit demonstrates, even a perceived failure to do so will expose an employer to potentially severe damages.
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