The U.S. Justice Department’s Antitrust Division and OSHA have issued a joint statement addressing the misuse of non-disclosure agreements that deter employees from reporting antitrust crimes. They emphasized that such practices undermine the Criminal Antitrust Anti-Retaliation Act of 2019 (CAARA), which prohibits retaliation against workers who report criminal antitrust violations or assist federal investigations. The statement warned that companies using NDAs to obstruct whistleblowing may face significant legal consequences, including criminal charges, and risk violating leniency policies requiring full cooperation from employees. Compliance programs will be evaluated for their policies on whistleblower protections and NDA practices when determining corporate liability.
Officials underscored the importance of whistleblowers in identifying antitrust violations, emphasizing that retaliation or fear induced by NDAs compromises law enforcement efforts and allows illegal activities to go unchecked. CAARA encourages reporting by safeguarding employees’ rights and imposing penalties for interference. The statement highlighted examples of overly broad NDAs that threaten lawsuits or termination, deterring individuals from cooperating with investigations. Companies failing to align their compliance programs with these principles risk losing leniency benefits and facing severe penalties. The agencies reiterated their commitment to fostering accountability and protecting whistleblower rights to ensure effective antitrust enforcement.
