Final FAR Rule Limits Contractors’ Use Of Employee Confidentiality Agreements

As of January 19, 2017, a new FAR Council Rule will prohibit federal dollars from going to companies that require employees or subcontractors to sign internal confidentiality agreements that restrict employees from reporting suspected waste, fraud, and abuse to the government; it will also require contractors to notify current employees and subcontractors that any existing confidentiality agreement inconsistent with this new Rule is no longer in effect. The Final Rule (discussed in greater detail here) was published in the Federal Register on January 13, 2017, and applies to all solicitations and contracts using fiscal year 2015 (and subsequent fiscal year) funds that do not already contain a comparable provision.