Quest lawsuit shows how to plan for ‘Turncoat’ employee

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in Human Resources

Lyndhurst-based Quest Diagnostics, the largest U.S. provider of diagnostic tests and services, has sued a former employee for allegedly taking confidential client information to benefit its arch rival, Laboratory Corporation of America (LabCorp).

Quest claims the sales rep downloaded lists of doctors and sales histories days before he resigned and went to work for LabCorp.

Quest alleges that he and LabCorp are using the information to target profitable accounts and undercut Quest’s prices.

The employee admitted he did “download some information,” but argued that some of it was already on the Internet and that he’s not using it in his new job.

Advice: Given employees’ access to information in today’s high-tech workplace, this kind of misappropriation can be hard to prevent.

Preparation is the next best thing, and Quest has its papers in order for court, including a confidentiality agreement, noncompete agreement and an agreement to reimburse the company for training if the employee left within five years. All of these will help its case. 

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