Article · Intellectual Property

What Walks Out the Door: Trade Secrets, Non-Competes, and the Employee Who Leaves

18 U.S.C. § 1839

Type
Article
Jurisdiction
National
Date
2025-05-26
Topic
Intellectual Property

When an employee leaves for a competitor, the employer's instinct is to reach for the non-compete. This article explains why that instinct is usually wrong, and what actually works instead. It covers what a trade secret is under federal and state law, why the "reasonable measures" element decides most cases before anyone reaches misappropriation, and why a customer list can be a protected secret in one case and public information in the next. It explains the three families of restrictive covenant — non-compete, non-solicitation, and confidentiality — and why they are enforced very differently, with non-competes now void or narrowly limited in a growing number of states. It covers the inevitable disclosure doctrine and its uneven reception, the whistleblower immunity notice that most employers still omit, and the forensic work that decides these cases. It closes with what a departing employee should do, and what an employer should do in the first seventy-two hours.

What Walks Out the Door: Trade Secrets, Non-Competes, and the Employee Who Leaves

Intellectual Property > Trade Secrets and Restrictive Covenants | Published 26 May 2025 - Updated 9 July 2026 | UpLaw - uplaw.us

Here is the phone call, and it always sounds the same.

"Our top salesperson resigned Friday. She starts at our biggest competitor Monday. She had every customer relationship we have. She signed a non-compete. I want her stopped."

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