A challenge to strict Google personnel policy bears watching by real estate investors and others who also often find themselves subject to non-compete, non-disclosure rules. However the court fight plays out, there are lessons to be learned.
A Google product manager has brought suit against the search giant, saying that an “internal spying program” that encourages employees to voluntarily report other employees who may have leaked information about the company violates California labor laws. The suit also alleges that Google’s confidentiality practices are too strict, citing requirements that employees cannot put any concerns about potential illegal activity into writing ever, even for the company’s own attorneys, and cannot write works of fiction about tech companies or Silicon Valley without Google signing off on the final draft. The confidentiality agreement allegedly is so strict that employees cannot even bring to light potentially dangerous product defects or discuss with a spouse or friend dissatisfaction with their supervisors and base pay. In fact, the agreement forbids employees from discussing their work experience at Google with other potential employers even after they have left Google.
The plaintiff in the case is an individual who has worked at Google for two years and was recently outed—albeit falsely, according to the suit—for leaking proprietary information to the press. The employee was a product manager. The employee in the lawsuit stands to win a big chunk of change if he prevails, since penalties for violating labor laws max out at $4 billion. However, about 75 percent of that will go California state coffers, and the rest could be shared among others with similar complaints.
Not surprisingly, the company with the motto “Don’t be Evil” has denounced the lawsuit as baseless and insists that its internal culture is “very open” and encourages the sharing of ideas and discussion of products and services. Google insisted that workers can discuss proprietary information with each other, but did say that confidentiality agreements are in place in order to protect that information. The company also stated that employees are allowed to discuss the terms of their employment. Similar claims were made against Google earlier in 2016, although this plaintiff, using the name “John Doe,” could be the same person.
The real lesson here for real estate investors is not so much about search-engine traffic as it is about sound practices. In this sector, you often will find yourself asked to sign non-compete non-disclosure (NCND) agreements when evaluating potential business partners, taking on new projects or even simply partnering on a single deal. Read the fine print, and be wary! You must be 100-percent certain you understand exactly how far-reaching any legal document you sign actually can be, and furthermore, be very judicious when it comes to making commitments via email or even social media about your real estate investing deals. In some cases, judges have held binding conversations that investors had via the internet that they believed to be merely discussions of alternatives. Remember, nothing ever truly disappears online, so behave as if every electronic step you take is wholly permanent.
You can get more of Carole VanSickle Ellis’ coverage of this topic and others online at www.sdiradio.com.
About the Author
Carole VanSickle Ellis is the host of Real Estate Investing Today, a daily nine-minute investing podcast, and the editor of the Bryan Ellis Investing Letter. Contact her at editor@bryanellis.com or visit www.investing.bryanellis.com.
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