What are the laws concerning the use of confidential and proprietary information?

In Minnesota, employers must protect confidential and proprietary information they receive from employees and third-party sources. This information includes customer lists, trade secrets, financial information, and other information that gives a company an advantage over its competitors. The Minnesota Supreme Court outlined the expectations employers must abide by when handling confidential and proprietary information in the 2018 case, Remme v. Heraeus Medical, LLC. The court stated that employers must not misuse or disclose confidential information to third-parties, should limit access to the information among employees, and should take reasonable steps to secure the information’s secrecy and integrity. Employers may also require employees to sign non-disclosure agreements. Employers should not expect all confidential information to be protected. For example, information disclosed by employees in a lawsuit or information that is easily accessible to the public will not be protected. In addition, an employer cannot exercise its right to protect its confidential information to the point of intimidating or harassing employees. Overall, employers must abide by the laws set forth by the Minnesota Supreme Court and ensure that confidential and proprietary information is properly protected and used appropriately. If an employer fails to protect a confidential information, they could be subject to civil or criminal legal action.

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