Home > Employment Law Advisor, Federal Employment Law - USDOL, Massachusetts Employment Law - General > New Federal Law Protects Trade Secrets But Also Requires Changes to Employee and Contractor Agreements

New Federal Law Protects Trade Secrets But Also Requires Changes to Employee and Contractor Agreements

May 5, 2016

By: Sandra E. Kahn

The new Defend Trade Secrets Act of 2016 (DTSA) is expected to be signed into law by President Obama.  The Act will allow claims for trade secret theft to be brought under a federal civil cause of action.

Under certain circumstances, the Act will provide protection for whistleblowers who divulge trade secrets to the government in order to report wrongdoing.  As such, employers will now have to inform their employees of that protection in any agreement or contract.  It is advised that employers consult with their counsel to revise contracts as necessary.

For a more detailed explanation of the DTSA, read the full post on our Good Company blog.