Employers may soon receive federal protection for their trade secrets. On April 27, 2016, the United States House of Representatives passed the Defend Trade Secrets Act of 2015 (“DTSA”) by an overwhelming 410-2 margin, and the legislation will now go to President Obama, who supports the bill, for his signature. The DTSA will provide a federal private right of action for employers and increase protections for employers’ trade secrets, however, the DTSA may also present challenges to employers who seek the Act’s protections. This article analyzes the DTSA, its potential benefits and disadvantages, and best practices for employers.
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