Final FAR Rule Limits Contractors’ Use Of Employee Confidentiality Agreements
Client Alert | 1 min read | 01.25.17
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current employees and subcontractors that any existing confidentiality agreement inconsistent with this new Rule is no longer in effect.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.
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On September 4, 2025, the Small Business Administration’s (SBA) Office of Hearings and Appeals (OHA) granted an appeal challenging SBA’s determination that a service-disabled veteran did not control an entity applying for Service-Disabled Veteran-Owned Small Business (SDVOSB) status based on a minority owner’s ability to block certain actions in the matter of VSBC Appeal of: Blue Skye Foods, LLC, SBA No. VSBC-442-A.
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