Keeping It Confidential: Why Protecting Client Info Matters in Wisconsin Workplaces
Imagine you are having lunch with a former employee. They have moved on to a new job with your company’s direct competitor. During the conversation, they casually say, “Hey, what if we exchanged contact information and lists of our (presumably) high-value clients?” What do you do? Hopefully, you decline your former colleague’s request. In Wisconsin, when it comes to customer information—names, contact details, preferences, purchase history—that is not yours to share.
So What’s the Big Deal?
Customer information is typically a company’s most valuable asset. It’s not just a list of names; it’s trust, loyalty, and often years of relationship-building. Sharing that with a competitor? That’s not helping a friend. That’s crossing a legal line.
In Wisconsin, employees have a legal obligation to protect their employer’s confidential information—even after they leave the job. Here’s what’s important to know:
- Trade secrets are protected under Wisconsin’s Uniform Trade Secrets Act. If customer lists or data give a company a competitive edge and are kept secret, they’re protected.
- If you take or disclose that information—whether intentionally or carelessly—you could be liable for theft of a trade secret.
- Even if something doesn’t rise to the level of a trade secret, many employees sign confidentiality agreements that make sharing this information a violation of contract.
“But I Didn’t Sign Anything…”
Does not matter. Wisconsin courts recognize that employees have an implied duty of loyalty while employed. An employee can’t use their position to undermine you, their employer, to benefit a competitor, or benefit a future employer. Sharing sensitive customer data, especially while still on the job, could be seen as a violation of an employee’s duty of loyalty.
What Counts as “Customer Information”?
It’s not just names and phone numbers. It could include:
- Purchase history
- Pricing terms
- Contact preferences
- Internal notes or account strategies
- Even knowledge about upcoming deals or pain points
If it’s something the competitor didn’t already know and it’s valuable to your company, it’s probably confidential.
What if an Employee Leaves the Company?
Employees are not off the hook, even after they leave. While employees are free to work wherever they want, they are not allowed to walk out the door with your customer data in hand. This is true whether it’s in their head, on a computer drive, or in their personal email account.
Employees, after they leave, can rely on general industry knowledge or public information. However, they cross the line when they have a spreadsheet that they downloaded before quitting.
Bottom Line
Written policies outlining what is your company’s confidential information can help everyone, including anyone who may be unclear. An exit interview is a great time to review with a departing employee what is confidential or proprietary.
This article, slightly modified to note recent updates, was featured online in the Wisconsin Employment Law Letter and published by BLR®—Business & Legal Resources. Reproduced here with the permission of BLR®—Business & Legal Resources.
