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Debra Katz, Caras’s attorney, says everyone from managers to dishwashers signed NDAs dating back to 2011, when Isabella opened his first restaurant, Graffiato. “I’ve never seen anything like this, and I’ve done this work for three decades,” Katz told Washingtonian. “This is just an across-the-board effort to force people to shut up and never speak about these issues.” Lawyer Says “Dozens” More Corroborate Allegations of Sexual Harassment in Mike Isabella’s Restaurants Isabella, meanwhile, has disputed the sexual harassment allegations and claims the NDAs weren’t nefarious. In a statement to the Post, he said they were established to “prevent any news about our restaurant openings from leaking to press before we were ready to announce it.” But how common are NDAs in restaurants? And how unusual is the one that Isabella’s employees signed? Local restaurant attorney Scott Rome, who’s unaffiliated with the Isabella case, says NDAs aren’t all that uncommon for chain restaurants (they’re rarer for one-off spots), but they’re typically used to protect trade secrets, not the broad personal lives and dealings of the owners. “What they often want to do is protect their training methods or their sales methods. They don’t want you to learn it all and take it to another restaurant,” Rome says. “But when you’re doing a broad NDA that covers more than just trade secrets, you run a big risk that it’s not enforceable, so we always advise our clients to tailor it as much as possible.” Katz says she’s also seen restaurant NDAs used to prevent staff from discussing customers and their conversations, but that the Isabella contract is overly broad. New York-based intellectual property lawyer Sam P. Israel—who’s unaffiliated with the Isabella case but reviewed Isabella’s NDA at Washingtonian’s request—says a few provisions are particularly unusual. For starters, he says the $500,000 liquidated damages clause is “very draconian” in this context.
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