It happens more than you might think: prior to resigning or being let-go, employees download company files to a personal data storage device, or email the files to their personal email accounts. Most employers don’t even know that files have been copied; files that often contain sensitive company information.
Las Vegas based LVRC Holdings did find out that one of it’s former employees—Christopher Brekka—had emailed numerous files from his work computer to his personal email account, as well as to his wife’s email account before he left the company. The files Brekka copied included financial statements, marketing data, and personal information about the employer’s clients. Brekka also used an administrator’s password to access the company’s network after he’d left the company.
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LVRC sued Brekka, arguing that he’d violated the federal Computer Fraud and Abuse Act (CFAA), which prohibits unauthorized computer access, or access to computer systems that exceeds authorization.
Unfortunately for the company, the Ninth Circuit Court of Appeals (which covers California) ruled that the employee did nothing wrong. Specifically, the court held that as an employee, Brekka had been given authorization to access company files. Further, because the employer didn’t maintain a policy prohibiting employees from copying company files for personal use or emailing them to a personal email account, Brekka didn’t break the law.
We’ll tell you more about this case, and what it means for California employers, in an upcoming issue of California Employer Advisor.