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My former employee is sharing confidential information—Help!

March 2023 employment law letter
Authors: 
Noah T. Rusch, Axley Attorneys

As an employer, one of your worst fears may be that a disgruntled or entrepreneurial former employee may try to share your internal operations, documents, or trade secrets. What you can do to protect your business in these situations may not always be clear. This article is meant to help you consider your options when you think a former employee is trying to sabotage your business by giving competitors an unfair edge against you.

Can I protect myself at the outset of employment?
Many employers who work in competitive fields often draft noncompete contracts because employee turnover can severely affect their business. This article won’t address noncompete contracts in-depth, but as a general overview, these can help to limit what a former employee is allowed to do after employment with you.

If they violate the noncompete contract, you can take legal action to enforce it, and you may be able to recover any damages you may have suffered. While this can be a relatively straightforward way to protect your business, it might not be an option for you. Further, the employee’s action may not be covered by a noncompete.

What if I don’t have a noncompete, or it doesn’t apply?
If you don’t have a noncompete, your remedies to stop a former employee may be limited. Limited, however, does not mean nonexistent.

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