Bridgewater Associates is under scrutiny for what has been described as a culture of surveillance and intimidation. Bridgewater manages billions of dollars and is the world’s largest hedge fund. A Bridgewater employee for five years, Christopher Tarui filed a complaint in January alleging that he was subjected to repeated sexual harassment by his supervisor during business trips over the course of a year. Tarui said he was reluctant to report the harassment for fear that it would not be kept confidential due to Bridgewater’s radical policy of widespread internal airing of employee grievances. After he reported the harassment, several of the firm’s managers allegedly pressured him to rescind his claims. According to Mr. Tarui, he was suspended in retaliation for threatening to file a charge with the National Labor Relations Board (NLRB).

In a related filing, the NLRB claims that Bridgewater’s policies coerce and restrict employee communication in violation of the National Labor Relations Act (NLRA). While Bridgewater insists that its employment agreements protect the firm’s confidentiality interests and legitimate business concerns, the NLRB says the company’s confidentiality provisions restrain and interfere with employees’ rights.

Both Mr. Tarui’s harassment complaint and the NLRB’s filings demonstrate that companies should exercise caution not to illegally overexert control through information security policies. Read more in the New York Times article.