Ethical Connection

The use of NDAs has been on the rise for decades, and a significant proportion of the U.S. workforce is bound to their companies by NDAs. But the tide may be turning. After a number of high-profile sexual assault and sexual harassment cases in Hollywood- and media reports of how many female victims were silenced by NDAs the #MeToo movement gained momentum.

Nearly every state now restricts NDAs in settlements of claims involving sexual harassment and sexual assault. California started the trend when it banned NDAs in cases involving sexual assault, sexual harassment, and sex discrimination. New York's law permits the use of such confidentiality agreements only if requested by the victim of sexual assault or harassment. Washington state's statute allows victims of sexual assault or harassment to testify and provide discovery about the incident regardless of any nondisclosure or arbitration agreement.'

The #MeToo movement has also used social media to pressure large companies and law firms- such as Munger, Tolles & Olson, a large California law firm to stop requiring employees to sign NDAs.

Ethics Questions:

1. Is sexual assault or sexual harassment more unethical than other types of misconduct, such as mishandling company finances, lying to clients, or stealing? Explain.
2. Why would the women who were sexually assaulted or harassed have signed the NDA?