The Securities and Exchange Commission recently settled its first administrative proceeding and enforcement action under the Dodd-Frank Act involving an employer’s use of a form confidentiality agreement. The SEC found the agreement, which prohibited employees from discussing aspects of internal investigations without prior law department authorization, could interfere with the employee’s ability to communicate with the Commission regarding securities law violations. In addition to a monetary payment, the employer was required to notify anyone who had signed the form agreement in the past four years that they did not need law department authorization if they wanted to communicate with the SEC. Based on this action, employers need to consider reviewing and potentially revising any confidentiality provisions they use for compliance with the Dodd-Frank Act. For more information, please click here.