A NEW LAW EMPLOYERS CAN APPRECIATE

Most governmental regulation means one thing to employers – more red tape and hoops to jump through.  However, a new law recently passed by Congress can provide the informed employer with significant protection.

Under the Defend Trade Secrets Act of 2016, an employer has the right to sue an employee who misappropriates its trade secrets.  The Act will create a uniform federal standard protecting employer’s trade secrets and allow employers to secure injunctive relief as well as economic damages against offending employees.  

Perhaps most notably, the Act even permits ex parte property seizures.  This provides an employer the chance to recover misappropriated trade secrets without having to first provide the offender advance notice.  This is a useful tool that can be used in appropriate circumstances to prevent an offender from destroying misappropriated property to avoid charges.

In order to secure the full protections offered under the Act, an employer must take affirmative measures.  For instance, an employer must show it undertook reasonable measures to safeguard its trade secrets from wrongful disclosure. 

Additionally, the Act requires notice of certain immunity provisions to be included in its policies or, for instance, its non-disclosure agreements.  

Given these requirements, it is critical employers consult their labor and employment counsel to adopt compliant policies to protect their trade secrets from wrongful disclosure.  

If you have any questions regarding this or any other labor and employment related matter, contact Masud Labor Law Group.