SEC Denies Apple's Attempt to Keep Employee Non-Disclosure Agreements Secret

The SEC has stated that Apple shareholders will be allowed to vote on how the company should report its use of employee non-disclosure agreements (NDAs) and concealment contract clauses.

Apple Insider reports that the SEC has stated that Apple’s shareholders will be allowed to vote on how the tech giant should report its use of NDAs along with employees and concealment contract clauses. Apple had attempted to request that a proposal relating to informing investors about NDA be excluded from its next shareholder meeting.

Tim Cook, Apple CEO, in China (NG HAN GUAN /Getty)

Apple’s Tim Cook got big pay bump in 2018: filing (Noah Berger/AFP)

The proposal came from a group of shareholders that are requesting Apple exempt harassment and discrimination from its non-disclosure agreements. Apple’s assertion was that the vote was unnecessary as “the company’s policy is not to use such clauses,” but the SEC has denied Apple’s request.

The SEC told Apple that it has not “substantially implemented the proposal.” Apple is due to face a vote on the issue at its next shareholder meeting as a result. The proposal is headed by Nia Impact Capital and calls for Apple’s board to prepare “a public report assessing the potential risks to the company,” due to its use of contract clauses.

The proposal focuses on the use of contract clauses “in the context of harassment, discrimination and other unlawful acts.”

Former Apple engineer Cher Scarlett filed a whistleblower complaint following Apple’s response to the SEC. Scarlett claims that Apple’s response contained “false statements,” and included a copy of her settlement agreement from Apple.

Breitbart News recently reported that the Occupational Safety and Health Administration (OSHA) is launching an investigation into Apple. The agency’s investigation is based on a complaint filed by whistleblower Ashley Gjøvik, who says she filed the complaint “to ensure Apple knows they cannot get away with retaliating against me for exercising my federally and state-protected rights.”