(GENERAL-23-56) FSA Enforcement Bulletin, July 2023 – Nondisclosure Agreements that Prohibit or Limit Employee Communication with the U.S. Department of Education Violate Title IV Regulations
July 13, 2023
AUTHOR Office of Enforcement
ELECTRONIC ANNOUNCEMENT ID GENERAL-23-56
SUBJECT FSA Enforcement Bulletin, July 2023 – Nondisclosure Agreements that Prohibit or Limit Employee Communication with the U.S. Department of Education Violate Title IV Regulations
In the course of its investigative and oversight activities, Federal Student Aid (FSA) has learned that former employees of some postsecondary institutions believe they are prohibited from, or limited in, communicating with FSA about aspects of their jobs related to the Title IV programs because they signed nondisclosure agreements (NDAs) with their former employers. NDAs include confidentiality clauses, non-disparagement clauses, and any other language that limit the ability of an institution’s personnel from discussing their employment, regardless of whether the language is contained inside of an employment contract, settlement agreement, separation and release agreement, proprietary rights agreement, or in a stand-alone nondisclosure agreement. FSA notified those institutions that, despite any NDA provision, their former employees and other personnel are legally able to communicate with the U.S. Department of Education (Department) about any matter associated with their institutions’ administration of the Title IV programs. FSA noted that any prohibition or limitation on personnel’s ability to do so would violate 34 C.F.R. § 668.24(f). FSA is sharing this information publicly to ensure a consistent understanding among participating institutions.
