Consultant Sharing Confidential Data

Summary

Sharing company information with a competitor can result in legal consequences, even without a signed confidentiality agreement. Under California law, misappropriation of trade secrets is covered by the California Uniform Trade Secrets Act. Breaching company policies in the employee handbook can lead to civil lawsuits. If still employed, the risk of discovery and legal action increases. Shareholders have fiduciary duties, and breaching these can lead to additional legal ramifications. Cease sharing information and consult a lawyer for guidance.

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none are signed but company protections are listed in the employee handbook
Sharing company information with a competitor can still lead to significant legal consequences even if no confidentiality agreement was signed. Under California law:
- Misappropriation of trade secrets is covered by the California Uniform Trade Secrets Act.
- Breaching company policies outlined in the employee handbook can lead to civil lawsuits for damages.
Did the employee handbook specifically mention confidentiality or protection of trade secrets?
is it any worse if I'm still working for that cmopany
Yes, it can be worse if you're still working for the company while sharing confidential information with a competitor. Being an active employee or consultant may increase the likelihood of immediate discovery and legal action.
Does the employee handbook mention any specific penalties for breaches of confidentiality?
no
Sharing company information with a competitor while still working for the company can have serious legal consequences, including potential civil and criminal penalties. Since your employee handbook outlines company protections, it is advisable to cease any sharing immediately and consult a lawyer.
Is there any additional information you would like to know about potential legal actions or how to mitigate the situation?
is the company exposed if that person is a shareholder in the company
If the person sharing the information is a shareholder in the company, the legal exposure could be higher. Shareholders owe a fiduciary duty to the company, which includes a duty of loyalty and a duty of care. Breaching these duties by sharing confidential information could lead to additional legal ramifications, including:
- Breach of fiduciary duty claims.
- Increased potential for civil lawsuits.
- Potential for equitable remedies such as injunctions.
Would you like more information on fiduciary duties or steps to mitigate potential legal issues?