In addition to reforming the non-compete clause, the Economic Development Act will also enact the Massachusetts Uniform Trade Secret Act. UTSA (1) contains, among other things, a legal definition of trade secrets; and (2) recover up to double damages for the deliberate and malicious misappropriation of business secrets of a competitor or employee. Currently, the protection of business secrets in Massachusetts is governed by jurisprudence, including the pioneering opinion of the Supreme Court of Jet Spray Cooler, Inc. v. Crampton. Jet Spray Cooler, Inc. defines a “business secret” by applying a query to six specific factors. The law applies to non-competition prohibitions that were concluded on or after October 1, 2018. It does not apply retroactively to agreements reached before that date. In particular, the law imposes an absolute ban on non-competition bans, as is the case for (1) unpaid workers; (2) interns or workers for students or students; (3) workers dismissed or dismissed without cause; and (4) workers aged 18 and under.
A well-developed confidentiality agreement pre-emptively resolves this problem or, at the very least, facilitates resolution. You simply have to include a clause that an employee agrees to your business being irreparably harmed by disclosing your confidential information to another person. This reflects the reality of the cases, but facilitates the evidence before the court to obtain an injunction. If you have signed a confidentiality agreement with your employer, you have the option of avoiding the after-effects that occur when you try to look for a new job. As has already been said, the burden on a Massachusetts employer for proof of the case is high. If you are threatened with legal action, you can work with an experienced lawyer to prove it: Nondisclosure Agreement – definition of a confidentiality agreement from the Nolo Plain-English LawDictionary, as provided by Cornell Law School. A confidentiality or confidentiality agreement (“confidentiality agreement”) is a contract with your employees. In the contract, you identify certain categories of confidential information and promise that your employees can use the information. In return, your employees promise not to disclose or use the information for other purposes – even if they no longer work for you! A confidentiality agreement is considered one of the most fundamental safeguards a company can take to protect its confidential information. If your company does not take this step, future attempts to prevent former employees from using your confidential information will be viewed with skepticism by Massachusetts courts. It`s not impossible, but why make your job more difficult? If your company thinks your employees are signing a confidentiality agreement or have already decided that you need an agreement, contact me today to agree on a first consultation. I will evaluate the information you have in your company and advise you on what steps you can take to protect your information from disclosure.
To prevent an ex-employee from exchanging trade secrets with the competition, working for the competition or asking customers, you may need to ask your employees to sign a non-compete clause in contact with the company`s sensitive information. However, the limitations of this document should be proportionate to the application of the legislation. If your employer has submitted a confidentiality agreement to you or if you have already signed an agreement with disclosure and want to know your rights, it is important to keep an experienced work lawyer to advise you.