PLEASE BE SURE THAT YOU CONTACT YOUR OWN LABOR ATTORNEY TO MAKE SURE THAT YOU ARE FULLY UP TO DATE:

Important: If you have employees or independent contractors or consultants sign a Confidentiality Agreement or Non-Disclosure Agreement, this new law will impact on such agreements. All such agreements signed after May 11, 2016 should contain additional notice language required by this law. There is no requirement to add the notice language to any agreements that were signed prior to that date.

A new Federal law called the Defend Trade Secrets Act of 2016
(?DTSA?)
provides a Federal cause of action to private companies for trade secret misappropriation. This is in addition to protections contained in your Employment Agreement and pursuant to the Trade Secrets Act in the
state(s) where your business is
transacted.

Under the DTSA employers can obtain an injunction, damages , exemplary damages of up to 2 times the amount of damages awarded and reasonable attorney?s fees for "misappropriation" by a current or ex-employee, consultant or contractor. The DTSA only applies to "misappropriation"
occurring on or after May 11, 2016.

In order to be awarded exemplary damages and attorney?s fees an employer must provide notice of whistleblower immunity. However, notice does not have to be provided to any employee who signed an employment agreement prior to May 11, 2016.

To take advantage of all the relief provisions of this new law you should add the following paragraph to the Confidentiality Section of any Agreements you enter into after May 11, 2016 with any new employee, independent contractor or consultant:

?Employee [consultant or independent contractor] hereby agrees not to misappropriate or improperly use or
disclose a ?trade secret? of the Company as such term is defined under
Federal or State law or as such term is used herein.
Regardless of the
foregoing, an individual may not be held criminally or civilly liable
under any Federal or State trade secret law for the disclosure of a
trade secret that: (a) is made (i) in confidence to a Federal, State, or
local government official, either directly or indirectly, or to an
attorney; and (ii) solely for the purpose of reporting or investigating
a suspected violation of law; or (b) is made in a complaint or other
document filed in a lawsuit or other proceeding, if such filing is made
under seal. ?