Trade Secrets Part II: Does “Non-Disclosure” Ever Mean “Non-Compete”?
Employment Employee Rights Employment Employment Contracts
Summary: Assuming that an employer has taken reasonable security measures to protect its bona fide trade secrets, what can be done after a former employee breaches the parties’ confidential relationship and begins working for a competitor?
Assuming that an employer has taken
reasonable security measures to protect its bona fide trade secrets, what can
be done after a former employee breaches the parties’ confidential
relationship and begins working for a competitor? Even if Boston Scientific had demonstrated
that the disclosure of its confidential information was more likely than not,
its request to block Dr. Lee’s continuing employment with Nevro seemed to be
a Hail Mary throw. That’s because Dr.
Lee had never agreed to any future restrictions on his options for employment
following separation from Boston Scientific.
In Massachusetts, agreements to restrict an employee’s future
employment (“non-competes” must be (1) reasonable in time and scope and (2)
bargained for between the parties.
But Boston Scientific’s request had no geographic or temporal
limitations, nor had the company ever requested Dr. Lee to sign off on any
restrictions regarding his future employment. In conclusion, employers who would seek to
restrict the future employment of individuals who are found to be in breach of
company policy regarding confidential information should notify and obtain
the agreement of employees to such restrictions at the outset of their
employment. |