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What the claims in the Bill Edwards lawsuit could mean for other companies, workers

Margie Manning

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A lawsuit a St. Petersburg development company filed against a former employee raises questions about what workers can and cannot do if they are thinking about leaving their jobs.

Andy Gaunce

It’s a topic Andy Gaunce, an employment and business attorney at Gaunce Law in St. Petersburg, deals with frequently.

“It comes often with businesses we represent, a former employee starting their own business or going to a competitor and taking information, customers or employees with them,” Gaunce said. “Society wants freedom of movement so people contribute their highest and best capital to the world, but we also want a level playing field for companies and fairness to businesses who invest and trust in their employees.”

Gaunce is not involved in the lawsuit filed by developer Bill Edwards and several companies he owns against former employee Joe Jimenez. The complaint, filed Feb. 13, accuses Jimenez of engaging in “corporate espionage” and providing confidential information to competitors.

On Feb. 27, attorneys for Edwards filed 17 exhibits in the case, all emails that they say were retrieved after Jimenez had deleted them. The emails cover a nearly six-year span, from May 2013 to Feb. 12, 2019. They touch on a wide variety of topics, ranging from the title on Jimenez’ business cards, to arrangements to introduce executives of an Edwards Group competitor, New York-based Red Apple Group, to business leaders in St. Petersburg. Red Apple is the developer for the proposed mixed-use high-rise in the 400 block of Central Avenue.

In one email, dated Sept. 2, 2017 and purportedly sent by Jimenez, he asks John Catsimatidis, owner of Red Apple, if he wants to work with a “seasoned professional” representing Red Apple’s interests in Tampa Bay. “If so, I would like to be that person for Red Apple,” the email said.

Lawsuits contain unproven allegations, and Jimenez has not yet filed a court response to the lawsuit.

One way an employer can avoid employees sharing confidential data is to limit information that employees can access to what they need in order to do their jobs, Gaunce said.

“It’s always better to fence off confidential information so the ability to misuse that information is limited,” Gaunce said. “Put in safeguards to keep employees from downloading data. Look at access rights in software programs to make sure employees can’t view pricing models, personnel files or other sensitive data.”

He said employers should communicate ground rules to their workers, letting employees know from their first day on the job that confidential information in the wrong hands can harm the business. For many small companies, a verbal conversation might be enough, while a larger company and companies of any size with valuable intellectual property to protect should consider a more formal training program including written confidentiality agreements.

Gaunce Law also advises employees who are opening their own business.

“The first thing I tell them is don’t use company resources for any communication about their new business. Using company email would abuse the right you have to use company resources, and may violate company security policies,” he said.

Set up a personal email, don’t try to bring co-workers or existing customers with you, and don’t take anything from your current employer, he said.

A business on the side can be OK, Gaunce said.

“Side hustles aren’t necessarily a bad thing,” he said. For instance, a software developer could develop an app on the side, so long as he or she doesn’t use concepts, methods or approaches similar to what his or employer does and so long as the time dedicated to a side job does not interfere with the time commitment to the employer.

“Just having a side business is not necessarily wrong as long as you are not violating a contract with your employer, which would be a breach of contract, or doing something that overlaps with what you do at your current employer,” Gaunce said.

The growth of the gig economy, with many people becoming independent contractors rather than employees, means that the population of people who are obligated to act in the best interest of their employers is shrinking.

“If I’m hiring an independent contractor and I’m worried they might take my information to a competitor, then build in confidentiality protections, build in language that says I own the intellectual property, the process and deliverables,” Gaunce said.

But independent contractors can’t be treated too much like employees. This is an area where many employers get into trouble.

“There are ways to accomplish the goal of making sure the independent contractor acts in your best interest without classifying them an employee,” he said.

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