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Employee Monitoring and Protecting Trade Secrets in Remote Work Environments

By Joseph Lavigne & PJ Kee on July 23, 2024
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With large swaths of the workforce working remotely, some employers have growing concerns about employee productivity, as well as information security and confidentiality. In today’s remote work era, organizations face significant challenges in balancing employee monitoring with safeguarding confidential information and trade secrets. This article explores key insights and strategies for HR professionals navigating these complex issues.

Privacy Concerns and Compliance

Ensuring compliance with privacy laws and the Fair Labor Standards Act (FLSA) while monitoring remote employees is paramount. Organizations must have clear policies in place for handling employees who have access to confidential information. This includes establishing standalone non-disclosure agreements (NDAs) and fostering a culture that prioritizes the protection of trade secrets, even in remote work settings.

Legal Considerations and Challenges

Legal complexities arise when monitoring employees who use personal devices at home. While employers can monitor company-owned devices and accounts, they must inform employees about the lack of privacy in these spaces. It’s essential to mitigate potential invasion of privacy claims by having employees acknowledge the absence of privacy expectations on company computers and email accounts through signed acknowledgments.

Handling Employee Privacy in Virtual Meetings

Managing employee privacy during virtual meetings is crucial. Best practices include documenting sensitive information disclosed during video calls and implementing virtual backgrounds to prevent inadvertent disclosures, thereby safeguarding employee privacy and maintaining confidentiality.

Protecting Trade Secrets in Remote Work Environments

Safeguarding trade secrets remains a critical challenge, especially when hiring employees from competitors. Organizations must proactively plan for the termination of employees with access to sensitive information and monitor communications for signs of data theft. Despite the shift to remote work, traditional methods of transmitting information, such as email and external drives, continue to pose risks.

Policy Recommendations and Compliance Strategies

To mitigate risks, organizations should implement comprehensive policies such as confidentiality agreements, non-competition agreements, and guidelines for cellphone usage among employees handling confidential information. Regular training sessions and fostering a corporate culture that values information security are essential for demonstrating diligence in protecting trade secrets.

Hiring from Competitors and Non-Compete Agreements

Navigating the complexities of hiring employees from competitors requires careful consideration of non-compete agreements and legal implications. Consulting with legal counsel is advisable to ensure compliance and prevent unintentional misuse of trade secrets, which could lead to severe legal consequences.

Conclusion

While remote work offers flexibility and efficiency gains, it also demands heightened vigilance in protecting confidential information and trade secrets. By implementing clear policies, conducting regular training, and fostering a culture of security awareness, organizations can effectively navigate these challenges while safeguarding intellectual property and maintaining legal compliance.

For further insights, listen to our HR Works podcast episode on this crucial topic here.

Photo of Joseph Lavigne Joseph Lavigne

Joseph Lavigne is a founder and editor of the Trade Secret Insider and is a lead partner for Jones Walker’s Trade Secret Non-Compete Team. He has years of experience litigating trade secret, non-compete, computer fraud, and unfair competition cases — in both federal…

Joseph Lavigne is a founder and editor of the Trade Secret Insider and is a lead partner for Jones Walker’s Trade Secret Non-Compete Team. He has years of experience litigating trade secret, non-compete, computer fraud, and unfair competition cases — in both federal and state courts. Several of these cases established Louisiana’s law on trade secrets and non-competes. He also actively advises clients on how to protect their trade secrets and retain key personnel, as well as ways to avoid liability when hiring key personnel from a competitor. Mr. Lavigne can be reached at jlavigne@joneswalker.com or 504.582.8610.

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Photo of PJ Kee PJ Kee

PJ Kee is an Editor and Founder of the Trade Secret Insider and a member of Jones Walker’s Trade Secret and Non-Compete Team. He regularly litigates cases involving trade secret theft, non-competes, computer fraud, conspiracies, and unfair competition, and counsels clients on strategies…

PJ Kee is an Editor and Founder of the Trade Secret Insider and a member of Jones Walker’s Trade Secret and Non-Compete Team. He regularly litigates cases involving trade secret theft, non-competes, computer fraud, conspiracies, and unfair competition, and counsels clients on strategies to protect their trade secrets. Mr. Kee also represents clients in criminal proceedings and litigates complex commercial and employment matters involving various breach-of-contract claims, business torts, invasion of privacy claims, defamation, and wage and hour disputes. He can be reached at pkee@joneswalker.com or 504.582.8230.

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  • Posted in:
    Featured Posts, Intellectual Property
  • Blog:
    Trade Secret Insider
  • Organization:
    Jones Walker LLP
  • Article: View Original Source

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