A Legal Guide to PRIVACY AND DATA SECURITY 2024

deal of harm to a company if they disclose this information or attempt to take it with them when they leave their employment. Both state and federal laws provide guidelines for employers and employees in this important arena. These laws are summarized below. Information Security. Employers have a responsibility to keep certain information confidential. For example, employee personnel records often include information that employers must keep confidential, such as employee medical records, drug testing records, social security numbers, and credit reports. Employees may also have access to similar confidential information about customers, clients, or donors that the employer is obligated by contract or law to keep confidential. Employers should adopt systems and policies to address the security of this confidential information. If employees have access to particularly sensitive information, employers should also consider requiring those employees to sign agreements acknowledging the duty to keep such information secure and providing specific guidelines on appropriate practices for keeping that information secure. Confidential and Proprietary Information. The Uniform Trade Secrets Act, codified in Minnesota at Minn. Stat. § 325C.01, et seq., prohibits misappropriation of trade secrets and provides employers with the right to injunctive relief and actual damages in the event of a threatened or actual misappropriation. The law defines a trade secret as information that derives independent economic value from not being generally known by others, so long as the employer makes reasonable efforts to maintain its secrecy. Employers should also consider entering into written agreements with employees to either broaden the scope of protected information or simply to provide more information to employees about what the employer considers to be confidential. Although such agreements cannot stop employees from breaching their obligations by publishing information online, the agreements will at least bolster the employer’s case for injunctive relief and damages in the event of such a disclosure. 74

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