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Wrong

Management is certainly within their rights to demand that employees not discuss this outside the company, but in no way, shape or form is it ILLEGAL for employees to talk about it anyway, should they choose to risk termination.

As they are not managers they cannot represent the company and thus violate no employee-employer privacy.

They are also not "covered entities" under HIPAA, and thus free to repeat any fact (or rumor) they want to.

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