breach of confidentiality

Almost all businesses will involve and contain certain confidential information.

Whether it is a secret recipe for your restaurant or sensitive client data, there will almost certainly be data and information that must be kept safe and classified. 

Unfortunately, however, it is not uncommon for confidential information to get out one way or another.

To make matters worse, workplace confidentiality violations are sometimes caused by employees who may work for that very business. 

When it comes to running a business, breach of confidentiality consequences can be dire. Thus, it is important to know when these situations might arise, the potential consequences, and what you can do in the aftermath.

“Employees are trusted with a great deal of very valuable information. Despite an employer’s best efforts, it’s not always possible to prevent disclosure of confidential information.” 

Employment Attorney Kristi Benson

When you are faced with a breach of confidentiality situation in the workplace, do not hesitate to contact BrewerLong.

Our team of Florida employment lawyers specializes in helping small and medium-sized businesses get through these types of legal disputes and more.

What Is a Breach of Confidentiality?

A breach of confidentiality occurs when proprietary data or information about your company or your customers is disclosed to a third party without consent. 

Breaches of confidentiality happen to companies each and every day throughout the nation. A breach might exist where a trade secret is shared with a competitor, an employee’s private information is disclosed, or clients suffer the consequences of careless privacy practices. 

Examples of Workplace Confidentiality Violations

There are a variety of scenarios in which workplace confidentiality violations may occur. Regardless of the precise circumstances leading to the violation, the fact remains that breach of confidentiality consequences can be severe. 

Disclosure of Employees’ Personal Information

Employees provide substantial private information during the application and hiring process for a position. Such data might include credit information, social security numbers, and education history. 

Employers are prohibited from disclosing the personal information of their employees without prior authorization. Failure to keep this information confidential may constitute a breach of confidentiality. 

Client Information Is Obtained by Third Parties

Data breaches target businesses and individuals all over the globe. And unfortunately, such attacks have only increased with the rising popularity of social media and the internet. 

Hackers use emails, text messages, and online advertisements in an attempt to gain access to private information such as social security numbers, credit card information, or account passwords.

Security measures, cybersecurity training, and workplace internet use guidelines aim to prevent the missteps that can lead to a breach.

Any environment, not just online, lacking proper guidelines for privacy and security is susceptible to a breach of confidential information.

For example, two employees talking about confidential client information at a public place could inadvertently disclose that information to a passerby. In such a scenario, these individual employees may face breach of confidentiality consequences due to their actions.

Breach of Confidentiality Consequences

Often, a breach of confidentiality is the result of the actions, or failure to act, of one or more individual employees. However, this does not mean that the business as a whole will not face any consequences. 

In fact, the unfortunate truth is that a breach of confidentiality by even one individual employee can result in many adverse impacts to the entire business entity.

Loss of Trust 

Confidentiality agreements aim to protect the secrets and operations of the parties involved in the contract.

Violation of the terms often results in the deterioration of those relationships and your reputation. Employees guilty of confidentiality breaches can face long-term consequences and find themselves blacklisted in the industry. 

However, it is possible that the industry could likewise lose trust in your business. A breach of confidentiality is a serious claim that has the potential to cause others to lose faith in you, your employees, and your entire operation. 

Thus, always take appropriate steps to prevent workplace confidentiality violations from occurring where possible.

Negative Impacts on Your Business

As customers, clients, and the community lose confidence in your ability to keep information confidential, this may lead to additional negative impacts on your business as a whole.

An internal breach of confidentiality can affect your business’s overall brand and reputation, both of which are crucial aspects of growing your business. As a result, your business could lose employees, future clients, branding opportunities, and more. 

Ultimately, this can result in a loss of valuable revenue for your company. 

Civil Lawsuits

Even more concerning for many businesses is the potential for civil lawsuits arising out of a breach of confidentiality.

Many victims file civil lawsuits against businesses or employees who breach their confidentiality. However, being put in the position of defending a breach of confidentiality lawsuit is never ideal for any business, whether it is a new, growing, or well-established one. 

The time and expense required to defend against such an action can put your business in an extremely difficult situation.

Criminal Charges

In some cases, breaches of confidentiality may even carry the possibility of criminal action.

Criminal charges arise only in extreme cases that resulted in significant financial, emotional, or physical loss to the victim.

For example, theft of intellectual property or using confidential information for financial gain could warrant criminal punishment. In the event of criminal violations, state or federal government officials prosecute the individual responsible for the breach. 

What Can My Business Do About an Employee Who Caused a Breach?

If an employee is responsible for workplace confidentiality violations, you may be wondering what recourse you may have.

Many companies use confidentiality agreements when hiring new employees. A confidentiality agreement typically includes an explicit clause stating that an employee who breaches the confidentiality agreement will be terminated.

Employment contracts also often authorize termination for the unauthorized disclosure of confidential information. Thus, termination may be a viable option.

Sometimes, however, termination of the employee may not be sufficient to repair the damage that resulted from their breach. In certain cases, employees who commit confidentiality breaches and harm their employer may be responsible for any loss of revenue that results from the breach. 

If you have questions about whether your business may have a legal claim against an employee for a breach of confidentiality, contact an experienced employment law attorney today.

Contact BrewerLong Today

In all business industries, protecting the private information of your clients, your employees, and your company is paramount. A failure to do so can result in severe reputational and monetary consequences, employment terminations, and even lawsuits.

Dealing with workplace confidentiality violations can be overwhelming. But there are ways you may be able to mitigate the effects and take action to recover.

At BrewerLong, we have the experience and sophistication necessary to get you through any business-related legal needs that come your way. Our firm has been serving clients for nearly a decade, and we hope we’ll have the opportunity to help you too. 

Contact us today for a consultation to discuss your case.

This blog post is provided on an “as is” and “as available” basis as of the date of publication. We disclaim any duty to update or correct any information contained in this blog post, including errors, even if we are notified about them. To the fullest extent permitted by law, we disclaim all representations or warranties of any kind, express or implied with respect to the information contained in this blog post, including, but not limited to, warranties of merchantability, fitness for a particular purpose, title, non-infringement, accuracy, completeness, and timeliness. We will not be liable for damages of any kind arising from or in connection with your use of or reliance on this blog post, including, but not limited to, direct, indirect, incidental, consequential, and punitive damages. You agree to use this blog post at your own risk. Regarding your particular circumstances, we recommend that you consult your own legal counsel–hopefully BrewerLong.

Author Photo

Kristi Benson

Managing, directing and motivating a workforce is a key factor in building a successful business. Kristi helps business leaders create and manage highly effective teams throughout every stage of their businesses. Kristi advises business leaders regarding all areas of employment law and enjoys assisting business leaders in preventing future legal problems and overcoming unavoidable legal battles.

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