Tech Industry Retaliation Misusing The Defend Trade Secrets Laws

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In the complex and ever-changing world of business, the laws established to protect trade secrets have recently been turned on their head. Instead of safeguarding proprietary information, a troubling trend is emerging where these laws are being employed as a weapon against employees. Companies across a wide spectrum of industries are cleverly exploiting trade secrets legislation as a legal strategy to strike back against claims of discrimination, unethical behavior, and whistleblowing.

This tactical approach accuses employees of misusing confidential information or proprietary business data. Strikingly, companies pursue these accusations even in instances where the information was procured or disseminated for valid reasons. These may include exposing illegal activities or reporting workplace misconduct.

Some workers were sued after gathering evidence of perceived wrongdoing in the workplace, what some attorneys call “self-help discovery” — despite whistleblower protections in the law.

The Defend Trade Secrets Act, championed and signed into law by President Barack Obama in 2016, ironically offers the legal foundation these companies need to launch trade secrets claims in federal courts. Under the provisions of this law, a trade secret is deemed misappropriated if it was accessed or unveiled without consent or through inappropriate methods, with no consideration given to whether it was shared with a competitor. This act has consequently lowered the bar for companies intent on taking legal action against employees suspected of breaching trade secrets.

For employees who have clues or evidence about such instances, it is crucial to contact an employment law attorney who specializes in employment law and has experience with whistleblower reporting. Legal professionals in this field can offer advice and represent individuals confronted with accusations of trade secrets as a form of employer retaliation. Having a clear understanding of your rights and available options when facing these potential legal hurdles is of paramount importance.

In conclusion, the fallout from the misuse of trade secrets laws to punish employees can be severe, encompassing financial setbacks, reputation damage, and emotional trauma. However, through a heightened awareness of this issue and by acquiring legal assistance, individuals can better shield themselves and fight back against unjust retaliation from employers.

This post was based on information in an article by Rob Price, a senior correspondent for Business Insider, who writes features and investigations about the technology industry.