Editorial: Regulators, gag orders don’t mix

Thursday, Sept. 14, 2000 | 10:07 a.m.

A settlement was endorsed by Nevada Labor Commissioner Terry Johnson that will require Jetstream Construction to pay $6,300 to six Hispanic workers, who maintained the company required kickbacks to keep their jobs. But the Aug. 18 agreement is creating controversy, in part, because it contains a gag order that prevents the workers, the company and the labor commissioner from talking about the agreement.

The allegations made by the workers were serious, which makes a gag order sanctioned by a government agency even more disturbing. The workers said that managers from the company, which is a subcontractor for the Clark County School District, required kickbacks of $200 or more each week from them and even mandated that workers put fewer hours on their time cards than they actually worked. Jetstream didn't respond to the Sun's inquiries about the settlement, but previously the company denied the allegations, asserting that the Carpenters Union fabricated them in an attempt to unionize the drywall construction company.

Fortunately, in this instance, since the settlement had to be filed with District Court, it belatedly became a public record. But if there hadn't been any judicial review of the labor commissioner's action, the public likely never would have known about the confidential settlement. Even today the workers fear speaking to the media since they worry that if they violate the gag order, they might be liable for damages provided for under the agreement. Michael Slater, director of the Las Vegas Interfaith Council for Worker Justice, argues that this could have a chilling effect, too. "The agreement sends a message to other exploited Latino workers that if you are brave enough to come forward and testify against your employer, the government will cover it up," Slater says.

Confidentiality provisions are common in private civil litigation when parties reach an out-of-court settlement, such as in divorce cases, but gag orders can do harm when they involve matters the public should know about. For instance, confidential settlements that Firestone made with people whose tires separated kept the public in the dark about the potentially life-threatening defect in millions of tires. Firestone is an extreme example, but gag orders can invite mischief. The fact is that government regulators, including the Nevada labor commissioner, should be leery of such secret pacts, let alone entering into them.