When Key Employees Go to Competitors

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As the economy recovers, employers are increasing their efforts to hire additional key employees. Many key employee hires are coming from competitors, or companies in similar fields, that are located in California or in other states. Such hiring means the companies losing employees are increasingly concerned about how to protect their trade secrets and their remaining employees. As a result, companies are increasingly crying foul, and considering litigation when a key employee is hired away. In this environment, hiring companies should be more cautious and consider taking early steps to minimize the potential litigation risks associated with key employee hires.

As such litigation increases, both former and new employers are smart to recognize that litigation over employees and trade secrets is often messy, expensive and potentially disruptive. Here are five tips to consider when facing these issues...

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