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  • R. Scott Kimsey

Employee Notice under the Defend Trade Secrets Act

Jim Duncan, a partner at Klein DeNatale Goldner, sent me some information relating to the Defend Trade Secrets Act, signed into law by President Obama in May of 2016. The Act provides a federal cause of action for misappropriation of trade secrets, and allows certain remedies like property seizure, injunction, exemplary damages, and attorney's fees. The exemplary damages can be substantial, but in order to qualify for them an employer has to provide employees with notice of certain immunity provisions in the Act.

Section 7 of the Act lays out the immunities at issue, and Section 7(B)(3)(C) reads:

"Non-Compliance.--If an employer does not comply with the notice requirement in subparagraph (A), the employer may not be awarded exemplary damages or attorney fees...in an action against an employee to whom notice was not provided."

If you have trade secrets to protect, contact our office to make sure your employment and confidentiality agreements include the proper notice provisions.

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