I have an ex-employee that has disclosed some information to another company about one of our clients. We were under a non-disclosure contract. They do not know what has happened yet. What is my course of action?? I know it is under my best interest for ME to tell them about it, rather them finding out. What can I do to my ex-employee? I am not looking for money or anything, I just want to protect my client and the information that has been shared!
Check with your attorney as each state has different laws on this…
When you hired the employee, you should have had him/her sign an employment policy which includes the non-disclosure agreement. If that employee never signed such agreement then you’re SOL. You’re in the hot seat now, not the ex-employee.
When I used to work for the company, I would never sign these agreements. Sometimes they will not hire you unless you sign it, but other times they just don’t care enough. One time I was in a meeting with a client and my boss. My boss, knowing that I did not sign the company’s internal non-disclosure agreement, asked me to sign the agreement that the client gave us and I did. Now ex-boss is protected if I mouth off about that particular client.
So it all depends on whether or not you and your ex-employee have a written agreement. If you don’t then you could be in trouble.
yeah he signed a NDC and i have contacted my lawyer and he has contacted the company that knows the informations and issued papers to them. The papers just state they know that the information that was leaked to them is sensitive and if they act of the info they can be sued. Tomarrow we hear the outcome. My lawyer said they have been agreeable so hopefully nothing happens further. The employee told them this information hoping it would have given him a better chance in getting a job with them
One dumb employee, If the “new” company hires him and they build anything that he knew about from you shop, and they know he signed a non-disclosure / confidentiality agreement they are liable. I remember a few years back when a designer left one car company for another ( i thing it was GM and VW) the lawyers got into a pissing match and spent a couple of milion dollars before they came to terms.
My sister inlaw is currently in NY on a case such as this.
she signed a non compete / disclosure contract when hired.
She was recruited by another company in the same field (MUCH LARGER) so she left the small company and took the job…highly unethical and ive lost a bit of respect for her for doing that…
As a result the smaller company is about to rake in major bucks in their multi million lawsuit.
Id have everybody under such a contract if i were running a biz.
Good luck
Wow at least they didn’t steel any tooling, it could be worse. This sucks because your client might be able to hold you responsible for letting the info get out. At least it might piss them off and take their biz somewhere else. On the other hand if the new company hires this employee and you can prove theft you could sue them. The problem is either way all of this could cost you a bundle if you have to fight in court. I would have your lawer send the ex employee a letter if you haven’t already. At least now the new company knows what a slug this guy is and a liability.
Good Luck
the problem has been handled and our client is well aware of the incident and I figured it would have been best to be completly honest and upfront with them. The employee did not get the job 
and the company that he applied for told me they would make sure this haunts him for awhile