Month: May 2014

Trade secret law and the Computer Fraud and Abuse Act (Part 2)

Under the CFAA, “[a]ny person who suffers damage or loss by reason of a violation of this section may maintain a civil action against the violator to obtain compensatory damages and injunctive relief or other equitable relief.”[1] To utilize this provision in the context of trade secret misappropriation a plaintiff must satisfy the many requirements of section 1030(g). (more…)

Trade secret law and the Computer Fraud and Abuse Act (Part 1)

At first glance, trade secret law and the CFAA could not be more different. Trade secret law is based on state law, while the CFAA is a federal law. The policies behind trade secret law general follow a state’s desire to incentivize innovation and reduce unfair competition, while also respecting the rights of employee and the greater public to use public information.[1] By contrast the CFAA was originally passed to address the relatively new threat of computer hacking of government and financial institutions.[2] Yet over the past several decades, as computers have emerged as ubiquitous tools used by nearly every business in the country, and with a series of amendments to the CFAA, the paths of trade secret law and the CFAA have converged. (more…)

Garden Leave Clauses in California

What are garden leave clauses?

Popular in England for many years, garden leave clauses are increasingly being used in the United States.  Typically, these clauses are inserted in an employee’s employment contract and are designed to extend an employee’s duty of loyalty beyond the employee’s desired term of employment by requiring the employee to remain with the company in a reduced or often nonexistent role. [1] This is accomplished by either requiring the employee to give notice well in advance of departure (ex. three to six months) or by requiring the employee to remain with the company for a  period of time after expressing his or her wish to leave. During these periods the employee remains on the payroll, but no longer participates meaningfully in the operation of the business and may even be told to stay away from the business altogether, giving the employee leave to “tend their garden” instead. (more…)