LaRiviere, Grubman & Payne, LLP

Bad Economy, Big Talent Pool – Six Tips to Minimize Trade Secret Misappropriation in Hiring

By Gregory Z. Kelly

The enormity of this economic downturn is undeniable, its reach seemingly inescapable. Yet, for all the bad economic news, savvy hiring managers know there is a lot of talent to choose from. With new talent come new ideas and information. With this influx, employers must remain vigilant in guarding against trade secret misappropriation.

Perhaps it is the new hire who assures you “Don’t worry; I own this technology.” Perhaps it is the competitor’s senior sale manager who was recently downsized. Or perhaps it is the interviewing employer who asked a detailed question of a candidate who was eager to impress. While not an exhaustive list, here are six tips to help minimize trade secret misappropriation during the hiring process:

Stay on the same page: Before interviewing the candidate, determine which company employees will interview the candidate. All interviewers must be instructed on relevant company policies and the handling of trade secret and confidential information before interviewing the candidate.

Pre-interview agreement: Before interviewing the candidate, obtain a signed written statement that the candidate will not disclose any trade secret or confidential information of the candidate’s previous employers.

Don’t ask: Be candid. Instruct the candidate that you do not want to receive any trade secret or confidential information, and document this statement. Do not ask the candidate about trade secret or confidential information of the candidate’s previous employers.

Don’t tell: Do not disclose any company trade secret or confidential information to the candidate during the interview process. If disclosure is necessary, do so only after entering into a suitable written confidentiality agreement with the candidate.

One employer at a time: Some candidates may want to start work immediately. Do not allow the candidate to perform work for the company until after the candidate has terminated employment with their previous employer.

Post-hire agreement: Instruct new hires not to use any trade secret or confidential information of the new hire’s previous employers during work for the company and obtain a signed written acknowledgment.

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