| LordTheNightKnight said: It was because that employee violated a non-disclosure agreement. Since Microsoft wasn't breaking the law, just being cheap and sloppy, the agreement is valid. |
I want to disagree, but your understanding of the law is correct. There might maybe possibly be some whistleblower statute in the appropriate jurisdiction which would permit the contractor to recover damages, but the chances of that are near-nil.
Moral of the story: if you know your company is doing something that's wrong, but not illegal, speaking out will cost you...







