Not compensated for the idea, the employee resigns and sues to recover a percentage of the money saved by the idea's use. The employee's case is not as strong as it appears. The reason is that ideas, plans, methods and procedures for business operations cannot normally be copyrighted. This is also true with respect to certain ideas for intellectual property. The law generally states that ideas belong to no one and are there for the taking.
Smart employers request all job applicants to sign agreements containing such clauses.
Avoid offering compensation when you receive a voluntary suggestion. In one famous case, a homemaker mailed an unsolicited cheesecake recipe to a baking company. The recipe was used and became a popular money-maker. Although the woman sued the company for damages, she lost. The court ruled that no recovery was obtainable because the homemaker voluntarily gave her idea to the company.