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A new report claims that Apple used non-disclosure agreements against employees and then lied about them to both investors and the Securities and Exchange Commission (SEC).
Apple claims that it does not use non-disclosure agreements (NDAs) when employees report concerns about illegal activities within the company. However, there are multiple reports that this is indeed the case. As a reminder, Apple employees have joined forces under the banner "Apple Too" to expose alleged discrimination and harassment in Apple's employment practices. A survey conducted by the employees revealed pay discrepancies between male and female employees, prompting Apple to ban such surveys.
Reports become a problem
The group announced last summer that it had found around 500 reports of "racism, sexism, discrimination, retaliation, bullying, sexual and other forms of harassment, and sexual assault." The U.S. Department of Labor subsequently investigated the Apple employees' complaints. Companies that use NDAs to conceal unlawful conduct from investors, regulators, customers, and the general public are considered unethical and, in some cases, may even be illegal.
Did Apple abuse NDAs and lie about it?
About eight U.S. state treasurers subsequently wrote to the SEC urging it to prohibit the use of NDAs in such circumstances and to demand an investigation into the obvious falsehoods in Apple's statements on the subject.
We encourage the SEC to support efforts to eliminate the use of confidentiality clauses in employment and post-employment agreements when it comes to discrimination, harassment, and other unlawful acts. Accountability to shareholders depends on strong transparency, and that transparency must extend to workplace culture. We also request that the Securities and Exchange Commission investigate Apple's statements about its use of employment and post-employment agreements in its October 18, 2021 letter to the SEC. Multiple news reports have noted that the whistleblower documents show Apple using the very confidentiality clauses it has repeatedly claimed it does not use in an attempt to get the SEC to take no action.
The Washington Post has learned of the letter and quotes a whistleblower who directly accuses Apple of lying to the regulator. California has already banned the use of NDAs in matters related to workplace discrimination. Now seven other US states are calling on the SEC to extend this protection to employees across the US. (Photo by Unsplash / Carles Rabada)
#AppleToo documents nearly 500 cases of problems at work
