Employers Aggressively Combat Non-Compete and Confidentiality Violations Amidst High Employee Mobility
The big picture: A new Littler survey reveals 92% of employers experienced staff departures to competitors in the past year, with 55% reporting restrictive covenant or confidentiality violations.
Why it matters: This trend highlights increasing employee mobility and a more aggressive stance from employers protecting proprietary information and business interests, often through litigation.
Between the lines:
- 37% of departing employees copied or removed confidential information.
- 26% violated non-compete agreements, and 33% breached non-solicit clauses.
- 35% of employers initiated litigation against departing employees, and 17% sued new employers.
Staffing & HR impact: Staffing firms and HR departments must modernize employment agreements and strengthen monitoring systems to mitigate risks from employee departures, especially concerning proprietary data and client relationships. Compliance with evolving non-compete regulations is critical to avoid legal challenges.
The bottom line: Employers are increasingly willing to litigate to protect their assets, making proactive legal and HR strategies essential.
