Confidentiality of Competitor Information Submitted to Government Agency
Case 106
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2026-02-13 16:13
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Engineer A is free to pursue employment with Company Y provided Engineer A does not disclose any confidential and proprietary design information Engineer A learned about Company X during Engineer A’s employment with the government agency and makes this obligation clear to Company Y before accepting employment.
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Confidentiality issues relating to client or employer information has always been an important ethical consideration within the practice of engineering. Several provisions within the NSPE Code of Ethics’ Fundamental Canons, Rules of Practice, and Professional Obligations address, or at least touch upon, these considerations. The ethical concerns in this area relate to the need to preserve the privacy and confidentiality of client or employer information, as well as the proprietary nature of much of what is often contained in the client or employer records. The engineer’s duty in this area is rooted in the obligation to serve as a faithful agent and trustee to the client or employer, and also the obligation to avoid circumstances that could appear to influence the engineer’s professional judgment.
Over the years, the Board has considered a number of cases relating to the engineer’s ethical obligation to maintain confidentiality and the impact that obligation may have on current or future clients. In BER Case No. 74-2, the Board held that a part-time consultant arrangement to municipalities by engineers in private practice did not preclude those same engineers from providing normal engineering services to the same municipalities. The Board noted, under the facts, that the engineer’s loyalties were not divided. In BER Case No. 82-6, the Board ruled that where an engineer is retained by the US government to study the causes of a dam failure, it would not be ethical for the engineer to agree to be retained by the contractor involved in the construction of the dam. The contractor had filed a claim against the US government for additional compensation. Citing NSPE Code Section III.4.b., the Board found that nothing in the record indicated that the engineer was given the consent of his former client, the US government, to represent the interests of the contractor in its claim against the government for additional compensation.
In another BER case, Case No. 85-4, Engineer ...
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Engineer A works for a government agency involved in the design and construction of facilities. During Engineer A’s tenure with the government agency, Engineer A receives access to confidential and proprietary design information provided by companies seeking approval from the government agency for their facility designs. Company X is among the companies submitting confidential and proprietary design information. Engineer A ends her employment with the government agency and accepts an engineering position with Company Y, a competitor of Company X.
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What are Engineer A’s ethical obligations under these circumstances?
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35
Total Entities9/9
Components Populated9/9
With EmbeddingsCombined Embedding
Roles
R
w=0.12
384D
Government Agency Employer
The government agency employed Engineer A during the period in which she received access to confidential and...
Board of Ethical Review Adjudicator
Reviews prior BER confidentiality and conflict-of-interest cases, concludes that Engineer A is free to pursue...
Company Y Competitor
Direct competitor of Company X that offers Engineer A an engineering position; because Company Y is a direct...
Engineer A Government Agency Engineer
While employed by the government agency, Engineer A received access to confidential and proprietary design...
Engineer A Company Y Engineer
After ending her employment with the government agency, Engineer A accepts an engineering position with Company Y, a...
Government Agency Regulatory Authority
The government agency receives confidential and proprietary design information from companies, including Company X,...
Company X Approval Applicant
Company X submitted confidential and proprietary design information to the government agency seeking approval of its...
7 entities
Principles
P
w=0.2
384D
Confidentiality of Company X Information
The Board conditions Engineer A's freedom to join Company Y on her not disclosing any confidential and proprietary...
Employment Mobility of Engineer A
The Board concludes that Engineer A is free to pursue employment with Company Y and should not be unduly limited or...
Confidentiality of Company X Design Information
Engineer A, while employed by the government agency, receives access to confidential and proprietary design...
Loyalty to Former Employer and Clients
The Board roots the confidentiality duty in the obligation to serve as a faithful agent and trustee to the client or...
Conflict of Interest Avoidance by Engineer A
The Board frames the ethical concern as the duty of engineers who gain, or are perceived to have gained, access to...
5 entities
Obligations
O
w=0.15
384D
Engineer A Confidentiality Duty
Engineer A must protect the confidential and proprietary design information, including Company X's design...
Engineer A Loyalty Duty
Engineer A retains a duty of trust and loyalty, together with the continuing ethical obligation to protect certain...
Engineer A Faithful Agent Duty
Engineer A must serve as a faithful agent and trustee to her employer, the government agency, which was entrusted...
3 entities
States
S
w=0.1
384D
Engineer A Conditional Employment Permissibility
Competitor Employment With Company X Information
Consent Irrelevance for Company X Information
Engineer A Confidential Design Information Possession
Engineer A Agency To Company Y Transition
Board Uncertainty on Duty Duration
6 entities
Resources
Rs
w=0.1
384D
NSPE Code of Ethics
NSPE Code of Ethics (topic: confidentiality of client or employer information and conflicts of interest)
BER Case No. 74-2
BER Case No. 74-2 (topic: part-time municipal consulting and divided loyalties)
BER Case No. 82-6
BER Case No. 82-6 (topic: retention by an adverse party without former client consent)
BER Case No. 85-4
BER Case No. 85-4 (topic: confidential information gained from a former client and switching sides)
4 entities
Actions
A
w=0.1
384D
Confidential Information Submission
Board Adjudication Decision
Government Employment Acceptance
Employment Termination
Competitor Position Acceptance
5 entities
Events
E
w=0.08
384D
Confidential Information Access
1 entity
Capabilities
Ca
w=0.07
384D
Engineer A Specialized Knowledge
Through her tenure at the government agency, Engineer A possesses specialized knowledge of the confidential and...
Engineer A Confidentiality Judgment
Engineer A's duty to protect the confidential and proprietary design information she received at the government...
Board Precedent Reasoning
The Board of Ethical Review reviews its prior confidentiality and conflict-of-interest opinions, including BER Cases...
3 entities
Constraints
Cs
w=0.08
384D
Engineer A Design Information Confidentiality
Engineer A must not disclose or use the confidential and proprietary design information, including Company X's...
1 entity
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