This post was written by Barry Friedman.
Now that the dust has settled into a murky cloud of uncertainty regarding limitations on the enforceability of non-compete clauses, we revisit the importance of confidentiality terms, conditions and policies. These will be the key backstop to employees’ and contractors’ ability to leverage valuable information gained during employment or retention. The following are a few key action items to bolster your ability to enforce confidentiality limitations.
- Reassess Your Confidentiality Policies
Review and update your confidentiality agreements to ensure they are clear, enforceable, and specific about what constitutes confidential information. Make sure these agreements are tailored to address your business’ unique needs.
- Strengthen Training and Awareness
Educate employees and inform contractors of the nature of confidential information. Effective training programs and clear marking or other identification of confidential information will provide a sound basis for enforcement. Ensure that employees understand the value of the information they handle and the potential repercussions of its misuse.
- Implement Robust Data Security Measures
Protecting confidential information goes beyond legal agreements. Invest in robust data security measures, such as encryption, secure access controls, and regular audits, to mitigate the risk of unauthorized access and data breaches. Physical security, including secure storage for sensitive documents, should also be a priority.
- Monitor Compliance and Address Breaches Promptly
Establish clear procedures for monitoring compliance with confidentiality agreements and addressing potential breaches. This includes having a plan in place for investigating and responding to incidents of unauthorized disclosure or misuse of confidential information. Prompt action can help mitigate damage and demonstrate a commitment to protecting sensitive data.
