While the "no gossip" policy proved Laurus's undoing, it was just one part of a poorly designed and executed management "strategy" (if it could be called that) to keep the lid on a boiling pot.

It all started several years ago when Henderson complained about sexual harassment and discrimination at the hands of one of her supervisors. Laurus' CEO, Terry Hess, tried to smooth things over, but Henderson wasn't happy with the results. Thus began a long descent into miasmal employee relations that featured:

• Hess's verbally warning Henderson to clam up about her problems around co-workers;
• Hess's firing several of her co-workers — but not her;
• Hess's promotion of Henderson after several attempts to discipline her for speaking to others about her treatment;
• Henderson's decision to take an extended medical leave of absence;
• Hess's creation of the fateful "no gossip" policy that ultimately led to the whole mess going public;
• Hess's firing of Henderson for allegedly helping other worried co-workers find new employment.

See any red flags in there anywhere?

Anyway, Henderson got suspended and then fired, lodged a complaint with the NLRB over the gossip policy, suspension and firing, and got her day in court. The hammer came down in December on Laurus in the form of a judgment in favor of Henderson by NLRB administrative law judge Donna Dawson. Here's the policy that she held to be illegal:

"Gossip is not tolerated at Laurus Technical Institute. Employees that participate

in or instigate gossip about the company, an employee, or customer will receive disciplinary action. Gossip is an activity that can drain, corrupt, distract and down-shift the company's productivity, moral, and overall satisfaction. It has the potential to destroy an individual and is counterproductive to an organization.

Most people involved in gossip may not intend to do harm, but gossip can have a negative impact as it has the potential to destroy a person's or organization's reputation and credibility …

"Gossip is defined as follows:

1) Talking about a person's personal life when they are not present;

2) Talking about a person's professional life without his/her supervisor present;

3) Negative, or untrue, or disparaging comments or criticisms of another

25 person or persons;

4) Creating, sharing, or repeating information that can injure a person's credibility or reputation;

5) Creating, sharing, or repeating a rumor about another person;

6) Creating, sharing or repeating a rumor that is overheard or hearsay…

"If an employee is found to have been involved (instigated, encouraged, or contributed to) gossip against another employee, a written warning is provided to the employee and the employee is directed to immediately cease the gossip. … Further incidents will result in further disciplinary action and may include termination."

Here's what Dawson had to say about that policy:

"I find that Respondent's rule on its face prohibits protected activity. Indeed, the

Respondent does not even defend the no-gossip rule in its brief. The language in the no-gossip policy is overly broad, ambiguous, and severely restricts employees from discussing or complaining about any terms and conditions of employment. The scope of Respondent's definition of "gossip" is an expansive ban against any discussion about one's personal life when they are not present; professional life "without his/her supervisor present;" or any "(n)egative  … or disparaging comments or criticisms of another person or persons." … In fact, read literally, this rule would preclude both negative and positive comments about a person's personal or professional life unless that person and/or his/her supervisor are present. Such an overly broad, vague rule or policy on its face chills the exercise of Section 7 activity, and violates Section 8(a)(1). A reasonable employee would certainly view it as doing so."

Dawson then ordered Laurus to give Henderson back pay for its illegal termination of her.

Laurus said it would appeal.