Defend Trade Secrets Act Separation Agreement

Notwithstanding other provisions of this Agreement, you may be entitled to immunity and protection from retaliation under the Defend Trade Secrets Act of 2016 for the disclosure of a trade secret in limited circumstances, as stated in the Company`s [NAME OF EMPLOYER`S REPORTING POLICY]. [4] If the communication is not made as intended, the employer will not remain defenceless to workers and former workers who have hijacked trade secrets. The employer may claim a DTSA claim without the right to claim punitive damages or legal fees and/or to take legal action under the State`s Trade Secrets Act. But the employer will have lost two powerful remedies for a powerful status – just because it hasn`t updated its forms of employment-related agreements. The DTSA grants immunity from criminal or civil liability for the disclosure of trade secrets when: (i) a person confidently discloses a trade secret to a federal, regional or local government official or lawyer for the sole purpose of reporting or investigating an alleged violation; and (ii) that a disclosure be made in a document filed under the secrecy of an action or other legal proceeding. In addition, the SDR allows a person to disclose to his lawyer, in the course of an action against an employer, a trade secret in which he argues that the employer would be compensated against the person for reporting an alleged offence and also allows the person to use the secrecy information in the course of the court proceedings, provided that any document containing the secrecy of the business is kept secret and that any disclosure is made only on judicial order. While the DTSA provides an essential level of federal protection for trade secrets, companies must first perform their due diligence to be protected by this law. The DTSA also offers protection to whistleblowers who reveal trade secrets in limited circumstances, including: to be protected by the DTSA, companies or individuals must prove that they have taken steps to keep their trade secrets private. [1] DTSA protects trade secrets « related to a product or service used in intergovernmental or foreign trade or intended for use in intergovernmental or foreign trade. » 18 U.S.C No. 1836 (b).

Instead of inserting the above paragraphs into the employment documents relating to trade secrets and confidential information, employers may simply insert a cross-reference in these documents of a directive including the employer`s procedures for reporting an alleged infringement (such as the company`s whistleblowing policy), provided that such a directive contained the information contained in the previous two paragraphs. For example, the employer may insert the following language into these documents: the SDR requires employers to disclose to workers the provisions relating to immunity and retaliation (« communication »). Independent consultants and contractors[3] in contracts or agreements concluded after May 11, 2016 that govern the use of trade secrets or other confidential information, including the following types of documents: For all contracts or agreements concluded after May 11, 2016, DTSA requires employers to notify employees, consultants and independent contractors of the immunity and retaliation provisions (« notification »). For all previous employment contracts, there is no need to include the following changes or provisions. Because « workers » are broadly interpreted by the SDR, the « employment contracts » mentioned above include not only simple employment contracts, but also independent contracting contracts, consulting contracts, separation and release of claims agreements, severance agreements and similar agreements included in the staff manual. The DTSA requires an employer to notify this immunity « in any contract or contract with an employee that regulates the use of a trade secret or other confidential information. » The employer can do this n