Executive Summary

The abolishment of NDAs may allow victims to tell their story, but at what cost?

It is no secret employers, following the misconduct of one or more of its executives, often seek NDAs from victims of the misconduct to protect their business from reputational harm. The left views the use of NDAs in this way as problematic and argue for their elimination. However, in exchange for the silence of victims, employers are often willing to pay far more than what a victim would otherwise receive in human rights damages. For example, sexual harassment claims typically result in $10,000 to $25,000 in human rights damages. Keeping such a matter quiet however, is worth far more to the employer, often in the hundreds of thousands and sometimes up to a million dollars. NDAs give the employer an ability to protect their business while incentivizing them to pay the victims closer to what they really deserve as compensation for the harm they endure.

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