Employees across North Carolina—including Charlotte, Raleigh, Wilmington, Winston-Salem, and Asheville—often hear the same warning when they resign: “Don’t take trade secrets.” That is sound advice, but it is also frequently used as leverage to intimidate employees into delaying a move, abandoning a new job, or accepting unfair separation terms.
A recent North Carolina Business Court decision is a useful reminder that employers cannot simply accuse a departing employee of “trade secrets” and expect the case to survive. In Box Co. of America, LLC v. Bostick, the Business Court dismissed the employer’s trade secrets claim with prejudice (meaning the claim was over) because the complaint did not plead the essentials required by North Carolina’s Trade Secrets Protection Act.
Court / Citation: North Carolina Business Court, Box Co. of America, LLC v. Bostick, 2025 NCBC 75 (Dec. 15, 2025)
What was happening: The employer sued a former employee and the employee moved to dismiss the complaint at the pleading stage.
What claims mattered most for employees: Trade secrets and a noncompete.
Result: The court dismissed the claims, and the trade secrets claim was dismissed with prejudice.
What the Business Court said about trade secrets (and why it matters to employees)
North Carolina’s Trade Secrets Protection Act requires an employer to do more than use buzzwords. A “trade secret” is typically information that has value because it is not generally known and is subject to reasonable efforts to keep it secret.
In Bostick, the court found the employer’s trade secrets allegations deficient in two practical ways employees should understand:
1) “We used reasonable measures” is not enough—an employer must plead what it actually did
The complaint relied on a conclusory statement that the company used reasonable measures to protect its secrets. The court required more: facts showing the steps the employer actually took to protect the information—things like access controls, confidentiality protocols, password protection, limiting information to those with a need to know, written confidentiality agreements, and other concrete safeguards.
Why that matters: if an employer did not truly treat information as secret, it is harder for the employer to claim you “stole” a trade secret later.
2) “He must have used them” is not enough—an employer must plead actual misappropriation facts
The employer’s theory was essentially that the employee “must have” used trade secrets because the employee later contacted customers and competitor products appeared at a customer location. The court rejected this kind of speculation. To plead misappropriation, an employer must allege facts showing how a trade secret was acquired, disclosed, or used—not just suspicion based on competition.
Why that matters: employees are allowed to compete fairly, and courts require real allegations—especially when trade secrets are being used as a litigation weapon.
Bottom line
The Business Court dismissed the trade secrets claim with prejudice. That is a meaningful result: it signals that unsupported “trade secrets” accusations are not enough to keep a case alive.
A note on the noncompete portion
The court also found the noncompetition restrictions unenforceable where they effectively barred the employee from working “in any capacity” in a related business. North Carolina noncompete law requires reasonable limits. Broad restrictions that read like a blanket ban—especially ones that sweep in roles that would not threaten an employer’s legitimate interests—are vulnerable.
The employer asked the court to “blue pencil” the agreement to save it. But courts generally do not rewrite an overbroad noncompete into something new; at most, they may strike separable language if the remaining restriction stands on its own.
Practical guidance for employees in North Carolina leaving a job
If you are planning a move in Charlotte, Raleigh, Wilmington, Winston-Salem, Asheville—or anywhere statewide—these steps reduce risk and defuse the “trade secrets” threat without giving up your rights:
-
Do not take company files or data. Avoid emailing yourself documents, copying files to personal storage, taking photos of internal materials, or downloading customer spreadsheets, pricing, proposals, templates, or playbooks.
-
Do not forward work emails to a personal account “just in case.” That often becomes Exhibit A in a lawsuit.
-
Return devices and confirm return in writing. Laptop, phone, external drives, badge, and any physical files.
-
Separate company information from your personal materials. Your general skills and experience go with you; the employer’s protected information does not.
-
Be disciplined about customer transitions. You can compete, but avoid using nonpublic pricing, confidential terms, unpublished buying habits, or internal customer lists the employer treated as secret.
-
Get agreements reviewed before you resign. If you signed a noncompete, nonsolicitation, or confidentiality agreement, a quick review before you give notice can prevent avoidable mistakes and help structure a safe transition.
Employee FAQ
Does an employer automatically “have a trade secret” because it says so?
No. The employer must show the information qualifies as a trade secret and that it used reasonable measures to keep it secret.
Can an employer sue me just because I contacted former customers?
An employer can sue, but it still must plead facts showing trade-secret misappropriation or another legal violation. Competition alone is not misappropriation.
If my noncompete is too broad, will a court rewrite it to be reasonable?
Often, no. Courts generally will not rewrite an overbroad noncompete into a different one.
Takeaway for North Carolina employees
Employers frequently invoke “trade secrets” when an employee leaves—especially when they fear customer relationships will follow. Bostick is a helpful reminder that in the North Carolina Business Court, trade secrets claims require specifics: what the alleged trade secret is, how it was protected, and what the employee actually did to misappropriate it. Suspicion is not enough.
If you are navigating a job change in North Carolina—Charlotte, Raleigh, Wilmington, Winston-Salem, Asheville, or elsewhere—and your employer is making trade secrets or noncompete threats, consider getting advice early. The safest move is a clean exit: no data, no documents, no shortcuts, and a clear plan for lawful competition.