Federal Defend Trade Secrets Act Necessitates Changes To Form Employment Agreements

Following passage by the House of Representatives on April 27, 2016, President Obama is expected to sign the Defend Trade Secrets Act of 2016 into law any day. Once signed into law, the Defend Trade Secrets Act will amend Chapter 90, Title 18 of the United State Code (The Economic Espionage Act of 1996) to create a federal, private cause of action for trade secret misappropriation where "the trade secret is related to a product or service used in, or intended for use in, interstate or foreign commerce." The Defend Trade Secrets Act will apply with respect to any misappropriation of a trade secret "for which any act [of misappropriation] occurs on or after the date of the enactment of the Act." Much of the early commentary surrounding the Defend Trade Secrets Act has focused on the fact that employers will now be able to rely on federal law instead of navigating the sometimes subtle differences in state laws concerning claims for trade secret misappropriation, and