Boston Business Journal - July 28, 2006

July 28, 2006

Avoiding legal risks as you expand your head count

Boston Business Journal

In many industries across New England, companies are expanding their work forces. With increased competition for talent comes a surge in litigation over perceived violations of restrictive covenants and other hiring related issues. We have observed a fundamental transformation in this area, largely stemming from the continued evolution of technology in the workplace and, in particular, companies' ability to track the computer activities of departing employees.

Many companies now scrutinize employees' computer activities when employees give notice of their departure, and some employers use sophisticated forensic tools to uncover evidence of computer-related activities that employees may not have understood could ever be detected. The discovery of such evidence has the potential to fundamentally alter the hiring landscape, particularly where an employee is moving between competitors. In fact, in recent years, courts have seen a marked increase in the number of lawsuits focused on a departed employees use of information belonging to the former employer, and courts are grappling with litigation focused on the downloading, transmission, use and attempted destruction of electronic data.