Yes, it probably can.  As an "at will" employee (that is one that does not have a union/employment contract that prohibits this action or there is no company policy to the contrary), your employer can hire/fire for any reason (or no reason), increase/decrease your salary/hours, promote/demote, and generally impose requirements on you that it sees fit.  In turn, you can choose to work for your employer or leave.  Note:  You would also have legal protection is some form of workplace discrimination is a factor. Finally, to the extent that charges are later filed in this matter, then employees would be free to speak to the police regarding any investigation.  This is true whether or not a confidentiality agreement is in  place.