News & Information

CCH® HR MANAGEMENT - 03/23/09

Don't let laid-off employees walk out the door with the company playbook

With substantial layoffs sparking concern over job security, such tough times can prompt disgruntled or panicked employees to consider taking their former employers' trade secrets or confidential information to a competitor in order to leverage a job they might not otherwise secure. While employers believe that their competitors would be ethical and refuse to use this data, in today's business landscape, theft of such information is happening. In fact, more than half of employees—59 percent—who lost or left a job last year stole confidential company data, according to a new survey conducted by the Ponemon Institute and Symantec Corp.

"It's estimated that 70 percent of an average business' value is held within its information systems. It is vital to protect a company's trade secrets so that in the event an employee steals that information, employers are in the best possible position to succeed in litigation stemming from the theft," said Ron Brand, Fisher & Phillips LLP's Employee Defection and Trade Secrets Practice Group. "A proactive corporate program should be in place, as well as forensic steps to catch the employee."

So what steps can employers take to protect their trade secrets in these uncertain times? Taking physical security measures like locking cabinets and doors, implementing IT solutions such as password protection and keystroke software and taking legal steps like implementing confidentiality and non-compete agreements can help employers protect their trade secrets and confidential information.

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