Under California law what can I do to stop my exemployees from stealing my documents customers and business secrets
This is a relatively new, complex and developing area of California law. The following general rules apply:
- California law protects "trade secrets;"
- Tangible and intangible property of your business will be protected;
- If your company consistently uses agreements governing confidentiality/non-disclosure and/or non-solicitation of employees and customers, reasonable restrictions generally will be enforced.
A "trade secret" is 1) information not generally known to the public, 2) that has independent economic value to the owner, 3) over which the owner has taken reasonable steps to keep secret/confidential. Key things businesses usually wish to call "trade secrets" include, intellectual property such as software code, secret formulas (e.g. formula for Coke®) and business methods and processes, client and prospective client lists and information, and other sensitive business information. Information will not be a "trade secret," however, unless all of the above requirements are met.
Normally, except for misappropriation of trade secrets, California law strongly favors competition in the marketplace. In fact, any agreement that restrains anyone from engaging in a lawful profession, trade or business is void. Not voidable, void - like it never existed.
Even if the information does not meet all "trade secret" requirements, however, it is wise to have written agreements with employees prohibiting them from taking or using confidential information with them when they leave the company.
Agreements restricting a former employee's ability to solicit your remaining employees and clients for a limited time after termination of employment may also be enforced under appropriate circumstances. To the extent illegal, unethical, improper or bad faith is involved in the competition, courts have demonstrated an increased willingness to constrain such "unfair competition."
While in California an ex-employee is free to pursue their "calling" and compete against their former employer, they are not exactly free to leverage all of your business' hard earned competitive advantages learned through the school of business hard knocks. Recent California cases have demonstrated a greater willingness to protect legitimate business interests of employers and rezind us that while "competition" is the American way, implicit in the idea is "fair" competition.
Under California law what can I do to stop my exemployees from stealing my documents customers and business secrets
***Note This page is an Archieve of Publicly released information either through our company or another Press Release organization. We do not "fact check", "Support", nor "Dispute" any of the information provided to us. We are a distribution point and Historical press release research and search service. This information only represents the fact that at one point in time the release was distributed to 1000's of publications both online and off. PRNewsNow will not take sides in any personal or commercial disputes you have with the writer of this press release. We will defend its right to exist blindly and without regards to its political, commercial or personal implications.***
