As employment attorneys and human resources professionals move from 2016 into 2017, the whirlwind of political and legal activity and uncertainty regarding what direction employment laws will take may lead some employers to take a “wait and see” approach toward HR compliance. Now is the perfect time, however, for employers to get their “HR houses” in order to be prepared for whatever the future may bring. Rather than putting compliance projects on hold for another day, employers should consider tackling in the coming month the legal updates and audit issues identified in this brief checklist, to lay a solid groundwork for 2017 and beyond.
Trade Secret Protection
The Defend Trade Secrets Act (DTSA) was effective in May 2016. If your company has policies and/or agreements concerning confidential information and employee nondisclosure obligations, modifications to address the DTSA are warranted. The DTSA offers: (a) a private federal cause of action for trade secret misappropriation, without pre-emption of state law; (b) a definition that is broad enough to protect customer lists and other business and financial information of value; (c) applicability to employees, consultants and independent contractors; and (d) ex-parte seizures, criminal penalties and exemplary damages consisting of up to two times the compensatory damages award where a trade secret was willfully and maliciously misappropriated. However, in order to be eligible for all the DTSA remedies, employers must provide notice of the immunity protections available under the DTSA.
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