Gibbons Law Alert

Gibbons Law Alert

Tagged: Confidentiality

NLRB Judge Strikes Down Employee Handbook Confidentiality Policy — Including Protection of Customer and Vendor Data

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Posted in Labor

On May 28, 2015

An employee handbook containing policies prohibiting (1) the disclosure of confidential company information, including personnel data, (2) use of the employer’s logo or trademark except as authorized by the company and (3) obstruction and interference with government investigations, including a requirement to notify the company’s human resources representatives or law department and to obtain approval to release information for a government investigation was found to violate Section 8(a)(1) of the National Labor Relations Act (“NLRA”) by an NLRB Administrative Law Judge (“ALJ”) in Macy’s Inc., JD(NY)-21-15. According to the ALJ’s decision, Macy’s employees when reading the policies could reasonably construe such policies to restrict their rights under Section 7 of the NLRA to engage in protected concerted activity for their mutual aid or protection.

Daughter’s Bragging to Facebook Friends Renders $80,000 Settlement Unenforceable

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Posted in E-Discovery: Legal Decisions and Court Rules

On April 8, 2014

Recently, a Florida appellate court held that a former headmaster was not entitled to an $80,000 payment pursuant to a settlement agreement with his former employer, all thanks to his chats with his daughter about the settlement, and her subsequent Facebook post bragging about the settlement. Patrick Snay sued Gulliver Schools, Inc. for age discrimination and retaliation. Gulliver agreed to pay Snay, in part, $80,000 to settle all claims. The parties’ agreement contained a non-disclosure provision requiring the existence and terms of the settlement be kept confidential, and upon breach by Snay or his wife, the disgorgement of the $80,000 payment.

Governor Christie Signs Legislation Protecting Social Networking Accounts of Employees

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Posted in Policies and Handbooks / Privacy and Data Security

On September 25, 2013

On August 29, 2013, Governor Chris Christie signed a bill that prohibits most employers from requiring employees or prospective employees to disclose user names and passwords for social networking accounts like Facebook, Twitter and LinkedIn. The new law, which goes into effect December 1, 2013, makes New Jersey the 13th state to enact legislation protecting the social networking accounts of employees. The Gibbons Employment Law Alert previously covered the proposed bill before it became law.

Federal Computer Fraud and Abuse Act Claim Asserted in Complaint Tethers Lawsuit to Federal Court

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Posted in Restrictive Covenants

On April 9, 2013

A Federal District Court recently refused to dismiss a complaint for lack of subject matter jurisdiction because, among several state law claims, the plaintiff – the individual defendant’s former employer – also asserted a claim under the Federal Computer Fraud and Abuse Act (CFAA). In NouvEON Tech. Partners, Inc. v. McClure, No. 3:12-CV-633-FDW-DCK, 2013 U.S. Dist. LEXIS 29208 (March 5, 2013), a North Carolina Federal District Court denied defendants’ Rule 12(b)(1) motion to dismiss, for lack of subject matter jurisdiction, a myriad of state law claims filed by NouvEON against its former employee (McClure) and her new employer (Smarter Systems).

NLRA Impact on Non-Union Workplace Policies to Continue into 2013

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Posted in Policies and Handbooks

On February 14, 2013

At the Gibbons Second Annual Employment & Labor Law Conference last week, one panel discussion addressed the National Labor Relation Board’s (“NLRB”) recent activity, and offered a list of topics to watch in 2013. This blog post contains the highlights from that discussion as related to employer policies. Of prime interest in our predictions for 2013 is the “recess appointment” issue. Just three weeks ago, the District of Columbia Court of Appeals in Canning v. NLRB, No. 12-1115 (D.C. Cir. Jan. 25, 2013) held that three 2012 recess appointments of officers to the NLRB by President Obama were unconstitutional because they lacked the “Advice and Consent” of the Senate and were not authorized by the Constitution’s Recess Appointments Clause.

New Jersey Court Finds Violation of Computer Related Offenses Act and Other Unlawful Conduct, Ordering Disgorgement of Profits, Attorneys’ Fees and Punitive Damages

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Posted in Reductions in Force

On January 28, 2013

In B&H Securities, Inc. v. Duane Pinkey et al., the New Jersey Superior Court found that former employees taking computer files from – and using the files to unfairly compete with – their employer violated the Computer Related Offenses Act, N.J.S.A. 2A:38A-1 et seq. (“CROA”), and breached other common law and contractual obligations. The Court awarded actual damages, based on plaintiff B&H’s lost profits of $737,087.00, as well as punitive damages of $100,000 and attorneys’ fees under the CROA.

Employers are Required to Use New Form to Comply with the Fair Credit Reporting Act

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Posted in Policies and Handbooks

On January 25, 2013

Employers must use an updated form in order to comply with the Fair Credit Reporting Act (“FCRA”), which covers background checks for job applicants and existing employees. The new form is for use effective January 1, 2013. No other provisions of the FCRA have changed. The FCRA Regulates the Use of Consumer Information – The FCRA regulates the use of consumer information. Consumer Reporting Agencies (“CRAs”) compile consumer information into detailed “consumer reports,” which may be used by employers for hiring and retention decisions. Employers also may conduct their own investigative consumer reports, which are covered by the Act as well. The FCRA provides notice and authorization requirements for the use of consumer reports and investigative consumer reports.

Time to Review Your Employee Policies and Training Programs

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Posted in Policies and Handbooks

On November 19, 2012

As we near the end of the year, now may be a good time to dust off your employee manual and training programs! An annual review of policies is a good best practice that can save your company both time and money in the long run. For instance, have you considered revising your policies or offering trainings in areas that have been the focus of recent legal activity such as: social media, confidentiality, reasonable accommodations, or bullying.

New Jersey District Court Enjoins Former Financial Services Employee from Taking Customer Information

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Posted in Restrictive Covenants

On February 17, 2012

In a case to be noted by financial services entities that are signatories to the “Protocol for Broker Recruiting,” a New Jersey District Court issued a preliminary injunction to a financial services employer, Ameriprise Financial Services, Inc. (“plaintiff”) to prevent a former financial advisor employee from retaining certain client information that he downloaded from his computer prior to his departure from plaintiff. Plaintiff was a party to the “Protocol for Broker Recruiting” that prescribes a method for a departing employee to retain certain client information when leaving for another financial services institution. To grant the injunction, the Court found that plaintiff showed it likely would succeed on its underlying breach of contract claim, it would suffer immediate irreparable harm absent the injunction, defendant would not suffer harm if enjoined, and the injunction favors the public’s interest. The Court essentially decided that if the Protocol is not followed in the first instance, a departing financial representative’s subsequent compliance is tainted and insufficient to withstand subsequent legal challenge.

Computer Fraud and Abuse Act Continues to be “Employer Friendly”

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Posted in Policies and Handbooks

On December 29, 2011

The Computer Fraud and Abuse Act (“CFAA”) is a federal law that, in part, makes it a crime to access a computer in an unauthorized manner. In the employment context, the statute has proven valuable in protecting confidential and proprietary information that employees can access on their employers’ electronic systems. Recent decisions by the United States Courts of Appeals for the Ninth and Third Circuits emphasize the breadth of the CFAA’s application to the workplace.

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