Question

ou are the project manager on a project that is critical to the ongoing success of ABC Co. While repairing the laptop being used by one of the key members of your project team, a technician has found a few files and a very large folder that has been encrypted. The files include:

(i) what might be illegal photographs of a person who appears to be a teenager; and

(ii) a pirated video game. The technician has not tried to unencrypt the large folder. ABC’s technology use policy:

(i) allows some personal use of company laptops; and

(ii) prohibits all illegal and unlawful content. The use policy does not expressly address searches. What steps should you take? Explain your reasoning for each step with reference to applicable statutes and cases.

Answer 1

As a business owner, you value the privacy of company secrets and procedures, which is why you expect your employees to maintain some standard of confidentiality. It can be difficult, however, to understand when that trust has been violated, because the breach of confidentiality definition can be a moving target. If your employees have signed a confidentiality agreement, then the breach of confidentiality definition is easy to understand. But confidentiality in employment is implicit, regardless of whether employees have signed an agreement. The following actions can be taken if any illegal use of office equipment has been done by an employee .

Termination of Employment

A major penalty for breach of illegal use is termination of employment. This is especially true if the employee in question signed a illegal use agreement prior to starting the job. In most cases, this agreement has an explicit breach of illegal use definition that includes a termination clause. In other words, an employee who signs this type of agreement agrees that a violation of illegal use is also a violation of the employment contract. The penalty for breach of illegal use isn’t restricted to employees who have signed illegal use agreements, however. For example, if you own a computer security company and an employee’s laptop is stolen, and that employee didn’t encrypt sensitive data on that computer per company policy, it could constitute a breach of illegal use.

Paying Civil Lawsuit Damages

Employees can also be subject to a civil suit for breach of illegal use. For example, if you run a healthcare clinic and one of your doctors discloses medical information to a person not authorized to receive that information, the breach of patient illegal use consequences could include a civil lawsuit for medical malpractice. Healthcare privacy is essential, not only to protect a patient’s right to decide who has access to sensitive information but also to protect doctors and other healthcare professionals from malpractice claims. Breach of patient illegal use consequences can include a sizeable award for damages and a loss of reputation for a doctor or healthcare clinic. To guard against these types of breach of patient illegal use consequences, many healthcare businesses purchase malpractice insurance.

Standing Trial in a Criminal Case

Another possible employee consequence for breach of illegal use is defending against criminal charges. Such a charge is typically reserved for serious or extreme cases in which the breach caused significant financial, physical or emotional loss. For instance, if an employee’s breach of confidentially involved theft of your proprietary information or intellectual property that was later used for financial gain, criminal charges may be warranted. Theft is a violation of criminal law that in some instances can be punishable by a stiff fine or imprisonment. As a business owner, you would report the theft to law enforcement, and the state or federal government would charge your employee with the crime.

Loss of Reputation

Although a tarnished reputation may not seem as harsh as a big fine, it can have serious, long-term consequences for an employee who is guilty of breach of illegal use. This is especially true if the employee works in a specialized industry in which competing companies are very familiar with one another. Employers will not look favorably on any prospective employees who were terminated due to a illegal use breach, or convicted of a crime related to that type of violation. In the long run, a person who violates the privacy of a patient or client, or violates the illegal use of an employer, will find it difficult to shake that reputation for the rest of their professional life.