This past Spring, we reported on the recently enacted Defend Trade Secrets Act (“DTSA”), which provides a new federal civil cause of action to trade secret owners seeking to pursue claims of trade secret misappropriation. Last week, the U.S. District Court in Massachusetts addressed the whistleblower immunity provision of the DTSA, which protects anyone who discloses a trade secret in confidence to a government official or an attorney “solely for the purpose of reporting or investigating a suspected violation of law.” In denying an employee’s motion to dismiss his employer’s DTSA claim, the district court held that a defendant must present evidence to justify the immunity. The case is Unum Group v. Loftus, No. 16-cv-40154-TSH (D. Mass. December 6, 2016).
Continue Reading Federal Court Rejects Defend Trade Secrets Act Whistleblower Immunity Defense on a Motion to Dismiss and Orders Employee to Return Stolen Trade Secrets
New Jersey Supreme Court Confirms Aspiring Whistleblowers Can’t Help Themselves to Confidential Documents
By Robert T. Szyba and Jade Wallace
In a pivotal decision with broad implications for aspiring New Jersey whistleblowers, yesterday the New Jersey Supreme Court affirmed the Appellate Division’s finding that no qualified privilege exists to protect an employee from criminal prosecution for taking confidential documents from her employer under the guise of gathering evidence for an employment lawsuit.
California Court Extends Protections To “Silent Whistleblowers”
Employers, although contractually free to terminate the employment of at-will employees for any reason, at any time, cannot dismiss an employee in violation of public policy. A prime California public policy is that employers cannot retaliate against whistleblowers—individuals who have reported suspected unlawful employer conduct. In January 2014, the Legislature expanded the general whistleblowing statute, Labor Code section 1102.5, to
Continue Reading California Court Extends Protections To “Silent Whistleblowers”
“Bridgegate” Triggers Proposed Expansion of New Jersey Whistleblower Protections
By Ada W. Dolph, Robert T. Syzba and Jade Wallace
In an effort to preempt another “Bridgegate” scandal, New Jersey State Senator Loretta Weinberg has sponsored a bill to extend whistleblower protection to employees who disclose incidents of wasted public funds, governmental abuse, or gross mismanagement. On October 9, 2014, the New Jersey Senate’s Labor Committee approved Bill S-768, which,
Continue Reading “Bridgegate” Triggers Proposed Expansion of New Jersey Whistleblower Protections
Loose Lips Sink Ships! Can an Employer Ask a Whistleblower to Keep Her Complaints “Confidential”?
By James Beyer
Hypothetical, based upon a real fact pattern: Sally works for a chair manufacturer and believes the chairs are made with unsafe and illegal toxins. Sally reports her concerns to the head of HR. Sally also says that she thinks her supervisor is “harassing” her for raising this with him because he gave her a bad performance rating.
Continue Reading Loose Lips Sink Ships! Can an Employer Ask a Whistleblower to Keep Her Complaints “Confidential”?
“But I’m a Whistleblower!”: Is an Employee Who Takes Confidential Documents Invincible?
Hypothetical, based upon a real fact pattern: Employee believes she has witnessed improper activities at her employer and begins preparing a qui tam whistleblower complaint alleging False Claims Act violations to file under seal. During the course of preparing the complaint, employee removes highly confidential electronic and original documents from her workplace, copying entire folders of sensitive
Continue Reading “But I’m a Whistleblower!”: Is an Employee Who Takes Confidential Documents Invincible?
An Employee Is Stealing Company Documents…That Can’t Be Protected Activity, Right?
A supervisor discovers that an employee has recently downloaded thousands of pages of confidential Company billing and financial information, and e-mailed it to her personal e-mail address. Upon further investigation, the supervisor discovers that the employee has asked other employees to also send Company documents to her personal e-mail address. This hypothethical is a scenario faced by employers more often
Continue Reading An Employee Is Stealing Company Documents…That Can’t Be Protected Activity, Right?
Upcoming Webinar – The New Risk: Employee Theft Of Trade Secrets And Confidential Information In The Name Of Protected Whistleblowing
Can Employees Steal Trade Secrets & Confidential Information To Support Their Whistleblower Claims?
The answer: It depends who is adjudicating the case, as a sharp conflict recently has arisen on this issue between federal and state courts and the U.S. Department of Labor (DOL). The DOL’s Administrative Review Board (ARB) recently suggested that such activities may indeed qualify as