According to the latest news, jobs have dropped by another 95,000 in the past month and unemployment continues to hover at 9.6%. In short, things do not appear to be improving and it is likely that we will continue to see workforce reductions until they do.
I ran across this article today (top item), which reports that a former Bank of America Corp. computer programmer has been accused in a lawsuit by the bank of stealing 21 confidential files the day before he was to be fired as part of a 400 employee workforce reduction. Bank of America is seeking a court order requiring the employee to return the files, plus unspecified damages. The files apparently included profit-and-loss figures, current securities trading positions and company risk assessments. Bank of America discovered the theft through a security review of large files sent by employees to e-mail addresses outside the company.
This story has a couple of lessons. First, companies need to be pro-active about protecting their trade secrets rather than simply relying on policies. Bank of America had security procedures in place that worked – do you? In my experience, employees who lose their jobs involuntarily are much more likely to try to harm their former employer in some way to gain an advantage for themselves. If you are planning a workforce reduction in this economy, protection of trade secrets should be a priority. Consider the following:
Before:
- Make sure policies are up to date and adequately protect trade secrets;
- Audit personnel files to ensure that employees have signed confidentiality and non-compete agreements in place;
- Ensure that you have taken adequate steps to protect trade secrets by limiting access to documents, including electronic access;
- Conduct periodic training to remind employees of their obligations;
- Develop security procedures to ensure that documents cannot be removed without authorization – work with your information technology department to set up electronic monitoring and protections;
- Consider banning the use of all USB devices on company computers;
During:
- Step up monitoring and other security procedures to ensure that confidential information cannot be removed;
- Promptly recover keys from terminated employees and lock out passwords and other access to computer systems;
- Promptly recover all company electronics capable of storing data, e.g. laptops, PDAs and telephones;
- Supervise the removal of personal items by terminated employees;
- Conduct exit interviews during which employees should be reminded of on-going obligations;
- Provide employees with copies of agreements governing post-employment conduct;
After:
- Continue monitoring for a period of time to ensure that terminated employees do not attempt to access company systems or persuade former co-workers to provide access or documents;
- Aggressively pursue any breaches of restrictive covenants.
- Partner
Mark Chumley has experience representing clients in all aspects of labor and employment law. He has handled numerous cases before state and federal courts and state and federal civil rights agencies, including claims involving ...
Topics/Tags
Select- Labor & Employment Law
- Labor Law
- Coronavirus
- Employment Law
- Department of Labor
- Arbitration
- Discrimination
- Employee Benefits and Executive Compensation
- Religion Discrimination
- IRS
- Disability Discrimination
- NLRB
- Litigation
- Race Discrimination
- Employer Policies
- Americans with Disabilities Act
- OSHA
- Social Media
- Retirement
- Sexual Orientation Discrimination
- Accommodation
- National Labor Relations Act
- National Labor Relations Board
- ERISA
- Employer Handbook
- Employment Litigation
- Wage & Hour
- Reasonable Accommodation
- EEOC
- ACA
- Affordable Car Act
- ADAAA
- NLRA
- Title VII
- Unions
- Employer Rules
- Federal Arbitration Act
- Sexual Harassment
- Technology
- Privacy
- 401(k)
- Transgender Issues
- FMLA
- Workplace Accommodations
- Disability
- Workplace Violence
- Employment Settlement Agreements
- Sixth Circuit
- Equal Employment Opportunity Commission
- Fair Labor Standards Act
- Paycheck Protection Program
- Securities Law
- Preventive Care Benefits
- Health Savings Account
- SECURE Act
- US Department of Labor Employee Benefits Security Administration
- Gender Identity Discrimination
- Posting Requirements
- Class Action Litigation
- Disability Law
- Benefits
- E-Discovery
- Evidence
- Family and Medical Leave Act
- Environmental Law
- Overtime Pay
- Privacy Laws
- Representative Election Regulations
- Department of Justice
- Healthcare Reform
- Older Workers' Benefit Protection Act (OWBPA)
- Electronically Stored Information
- Telecommuting
- Affirmative Action
- Compensable Time
- Equal Opportunity Clause
- Pregnancy Discrimination
- Security Screening
- Supreme Court
- Occupational Safety and Health Administration
- E-Discovery Case Law
- Electronic Data Discovery
- ESI
- Return to Work
- Seniority Rights
- Unemployment Insurance Integrity Act
- American Medical Association
- Attendance Policy
- Classification
- Confidentiality
- Disability Leave
- Equal Pay
- Fair Minimum Wage
- Federal Minimum Wage
- Genetic Information Discrimination
- Media Policy
- Misclassification
- National Origin Discrimination
- Retaliation
- Social Media Content
- State Minimum Wage
- Wage Increase
- Taxation
- Antitrust
- Employment Incentives
- HIRE Act
- Social Security Tax
Recent Posts
- The Practical Employment Law Podcast: Labor & Employment Law Update Week of 3/6/23
- The Practical Employment Law Podcast: E.W.A. - Straight Outta Payroll
- The Practical Employment Law Podcast: Labor & Employment Law Update Week of 1/23/23
- The Practical Employment Law Podcast: The Obligatory New Year's Episode
- The Practical Employment Law Podcast: The Obligatory Holiday Party Episode
- Independent Contractor Classification - Deadline to Submit Comments on the Notice of Proposed Rulemaking is Approaching
- The Practical Employment Law Podcast: Thanksgiving for Plaintiffs' Attorneys
- Why Every Employer Including Those Outside NYC Should Stay Abreast of the NYC Pay Transparency Law
- The Practical Employment Law Podcast: Interview with Author and Lawyer Steven Mitchell Sack
- The Practical Employment Law Podcast: Are You Caught in a TRAP?