Compliance Stuff

The White House’s recent push to require all federal employees to sign non-disclosure agreements may have you wondering whether NDAs might be right for your organization. While they’re one of your most powerful tools for protecting confidential business information, trade secrets, and competitive advantages, they’re also one of the easiest agreements to get wrong. Here’s an eight-step plan for deploying effective and legally compliant NDAs. 1. If an Employee Accesses Confidential Information, Use an NDA If an employee has any access to confidential business information, then you should have them sign an NDA. They are your first line of defense against trade secret theft. These agreements are generally subject to far less scrutiny than non-compete agreements and can appropriately be used with a broader subset of employees. Trade secret laws require that employers take reasonable measures to protect the secrecy of their sensitive information, and having an NDA in place could help you ma...

Introduction Recent decisions by some companies to prohibit employee participation in prediction markets signal growing concerns about the reputational, conflicts of interest, and confidentiality risks posed by this rapidly expanding marketplace. Every company where employees have access to nonpublic information, client intelligence, licensed information or data, or proprietary analytical expertise should assess whether its compliance framework adequately addresses the risks these platforms present. I f your company has a principles-based Code of Conduct that provides guidance to employees on ownership of and misuse of data, confidentiality, and conflicts, your company may be technically covered, but you should consider whether additional training, guidance, or policies specific to prediction market activity is appropriate. Preventing prohibited or potentially problematic conduct before it occurs is easier than remediating the problem after the fact. Companies should consider providin...

Often, in the first 48 hours after a key employee resigns, the employer must decide whether to address the departure as a manageable issue or escalate it into a legal or business dispute. While many resignations might appear routine on the surface, issues involving confidential information, customer relationships, and post-employment obligations frequently emerge after the employee has left . For employers, early action is less about assuming misconduct and more about preserving options . Delays, inconsistent responses, or poorly documented decisions often weaken a company’s ability to protect its interests if problems arise later. Why the first 48 hours matter The period immediately following a key employee’s resignation is critical because certain damage cannot be undone once it occurs. If confidential information is disclosed or customers are improperly solicited, the harm may already be done, and as a practical matter, it is very difficult for employers to reverse the damaging eff...

Does an employer have recourse when a whistleblower steals confidential information? Companies routinely require employees to sign Non-Disclosure Agreements. These “NDAs” advance the employer’s entirely legitimate interest in protecting confidential and proprietary information. However, a question that often arises is the following: what recourse does an employer have when it learns that, on the way out the door, a former employee accessed extensive confidential information and sent it to their own personal email? Can the employer sue the former employee for breach of contract? Will the employer prevail? This is a topic which courts across the country continue to wrestle with. Resolving the issue requires striking a balance between an employer’s legitimate business interests and the rights of whistleblowers to preserve information needed to advance their legal claims. While the law remains unsettled, most courts consider the following three factors in deciding whether to side with th...

Trade secrets are a pivotal element in the competitive strategies of businesses, fostering innovation and providing a f lexible, cost-effective means to safeguard valuable business information . They are an instrumental part of both corporate  governance  and  compliance .  Anything that is safeguarded and has independent economic value can be a trade secret, including business processes, advances in technology, secret formulas, algorithms and more. The protection of trade secrets is fundamental for maintaining a competitive edge, spurring investment in research and development and driving economic growth.  This is particularly salient in the age of AI, where organizations are using generative AI prompts and outputs to improve operations and are, in some cases, creating new AI-based technologies.  Trade secrets are subject to certain  risks  and compliance obligations as a result of new AI-related laws and regulations in the  EU  and the...