Trade Secret Protection : The Legal Risks of Telecommuting

More workers than ever now telecommute. Telecommuting can significantly reduce an employer’s overhead expenses, but it can also lead to increased employment law legal risks for an employer. Two such examples are overtime compensation and trade secret protection.

Overtime Compensation

One potential trade secret litigation pitfall concerns overtime compensation for employees who are not exempt from the Fair Labor Standards Act. These employees may seek overtime compensation for hours worked while away from the office. To combat this, an employer should establish guidelines for when an employee should (and should not) respond to emails and telephone calls. Employers should also ensure that an employee does not work overtime without a supervisor’s prior approval.

Trade Secret Protection

Another employment law concern centers on the protection of trade secrets and confidential company information. Protecting sensitive company data may be more difficult when employees telecommute. These employees may attempt to store files containing confidential company information on personal devices. To minimize the risk of disclosure or theft by an employee, an employer can take practical steps such as the ones listed below:

  • Restrict access to certain information
  • Require all work to be done on an employer-owned laptop or through a direct connection to the employer’s computer network
  • Educate employees on how to properly handle confidential company information

When dealing with these types of matters, it is important to adhere to the strict laws that govern trade secret protection and confidentiality, such as the Defend Trade Secrets Act of 2016. It’s a good idea to have a business lawyer draft up your policies, or at the very least review them.

To speak to a trade secret lawyer about effective workplace policies regarding telecommuting and trade secret protection, contact a Texas trade secret attorney at Rogge Dunn Group.

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