The Defend Trade Secrets Act (DTSA) is a federal law that provides important protections for both employers and employees regarding the handling of confidential business information, commonly known as trade secrets. Many separation agreements include a specific provision to inform employees of their rights and responsibilities under this law.<\/p>\n
What Is the Defend Trade Secrets Act?<\/strong> When Is Disclosure Protected?<\/strong> What Happens If Disclosure Is Not Protected?<\/strong> Key Takeaways for Employees:<\/strong><\/p>\n
\nThe DTSA allows individuals to disclose an employer\u2019s trade secrets without facing criminal or civil liability, but only under certain circumstances. This is designed to encourage the reporting of suspected legal violations while still protecting the employer\u2019s confidential information.<\/p>\n
\nUnder the DTSA, an employee can disclose trade secrets without fear of legal consequences if:<\/p>\n\n
\nIf an employee discloses trade secrets for reasons other than those allowed by the DTSA, or does so in bad faith (for example, to harm the employer or for personal gain), the employee may be held liable for substantial damages. This can include punitive damages (extra damages meant to punish wrongful conduct) and the employer\u2019s attorney\u2019s fees.<\/p>\n