Gates Down: Third Circuit Says Breaking Employer Computer Access Policies Is Not Hacking

The U.S. Court of Appeals for the Third Circuit recently ruled that violations of employers' computer access policies by employees who are permitted to access a company's computer system do not constitute violations of the federal Computer Fraud and Abuse Act (CFAA) and that account passwords are not company trade secrets. The ruling could have significant implications for employers' ability to bring claims under the CFAA to protect against misuse of company computer systems.

Quick Hits

• The Third Circuit recently ruled that violations of employer computer access policies alone do not amount to federal CFAA violations.
• The ruling follows a "gates-up-or-down" approach, finding that employees do not exceed authorized access under the CFAA by accessing company systems, even if done for improper purposes or contrary to company policy, as long as employees are permitted to access those systems.