In the new Legal Forum Column, Blaine R. Blood discussed the new federal trade secret law. Read his advice below and don’t miss our monthly Legal Forum Column in Louisville Business First.
What aspects of the new federal trade secret law are most important for employers to know?
The new federal Defend Trade Secrets Act (“the Act”) provides a federal forum for litigating and resolving disputes concerning trade secrets. While the entire Act is of interest, here are three quick points that employers may want to know. First, the Act provides immunity in certain cases for employees who divulge trade secrets to government officials who are investigating crimes, and in certain other scenarios. Second, in order for employers to receive the full benefit of trade secret protection under the Act, they need to include a notice of the above-referenced immunity in employee agreements that cover confidentiality of trade secrets. Such agreements entered into on or after the Act’s effective date of May 11, 2016, should include this notice. Third, the definition of “employee” in the Act is broad and includes contractors and consultants.