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How to handle confidential information when onboarding new hires

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in Hiring,Human Resources

by Dean A. LeDoux, Esq., Gray Plant Mooty, Minneapolis

Although most employers are sensitive to the need to protect their own company’s confidential information, they may not be as attuned as they should be to the other side of the coin. A recent trial experience provided me with an extraordinary lesson on the significant legal exposure an employer can face when hiring employees from a competitor.

I recently completed a jury trial in which my client obtained a $22.7 million verdict against a competing company that hired away two of my client’s employees—who had secretly taken numerous computer files from my client and used them for their new employer’s benefit.

While the new employer engaged in many troubling acts, the most egregious was its failure to manage the situation at the hiring stage. The company appeared to adopt a conscious strategy of turning a blind eye toward the unlawful activity of its newly hired employees. ...(register to read more)

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