In the fourth quarter of 2017, two major financial firms dropped out of an industry-wide Protocol for Broker Recruiting (the “Protocol”), an agreement designed to reduce litigation surrounding the movement of stockbrokers between competing firms. While those departures do not necessarily seal the fate of the Protocol, they do portend an increase in litigation to … Continue Reading
In states that permit the enforcement of non-compete and other restrictive covenant agreements against former employees, companies must still demonstrate that the restrictions are designed to protect a legitimate business interest, and not to simply avoid ordinary competition. In Osborne Assocs. v. Cangemi, Case No. 3:17-cv-1135-J-34MCR (M.D.Fla. Nov. 14, 2017), the federal court for the … Continue Reading
Proof of damages in restrictive covenant matters can be complicated. In Rhymes v. Filter Resources, Inc., the Ninth Court of Appeals in Beaumont, Texas reminded parties that revenue and sales are not the same as lost profits, and expenses must be considered when developing a damage model. George Rhymes (“Rhymes”) was employed by Filter Resources (“Filter”) … Continue Reading
Our Corporate Governance Practice Group posted this article regarding further activity by the Securities and Exchange Commission in response to confidentiality provisions it found might deter potential corporate whistleblowers under the Dodd-Frank Act. Employers should be reminded to carefully draft non-disclosure of confidential information provisions clearly not to prohibit employees from reporting violations of law or cooperating … Continue Reading
Erik J Winton, Sarah B. Herlihy, and Shawn N. Butte have written an article regarding current efforts to reform Massachusetts non-compete law. The article, entitled Down to the Wire for Proposed Non-Compete Reform Legislation in Massachusetts and published on Jackson Lewis’ website, can be found here … Continue Reading
Elayna J. Youchach, Paul T. Trimmer, Deverie J. Christensen, and Lisa A. McClain of Jackson Lewis’ Las Vegas office have written an article on the first decision to reach the Nevada Supreme Court regarding whether state district courts may modify or “blue pencil” non-competition agreements. Read the article here … Continue Reading
Tim Kratz and Kristen Baylis in our Denver office have reported on an important new law in Colorado, extending whistleblower protection to state employees who disclose confidential information in the context of reporting waste, mismanagement of public funds, abuses of authority or illegal and unethical practices to a designated “whistleblower review agency.” To review the article, click here … Continue Reading
The federal Defend Trade Secrets Act of 2016 was signed into law on May 11, 2016 by President Obama. A review of the law and its impact on employers can be found here.… Continue Reading
Edward M. Richters has written on the Jackson Lewis website about a new Connecticut law, Senate Bill 351 (as amended), which establishes significant new restrictions on physician non-compete agreements in Connecticut. http://www.jacksonlewis.com/publication/new-connecticut-statute-restricts-physician-non-compete-agreements … Continue Reading
A federal appeals court has held a forum selection clause in a non-disclosure agreement does not cover trade secret misappropriation and related claims that are not based on the agreement. In re Orange, S.A. v. United States District Court, 2016 U.S. Ap. LEXIS 648 (9th Cir. 2016). Telesocial is a San Francisco start-up, formed in … Continue Reading
Conrad S. Kee from our Salt Lake City office and Cliff Atlas, co-chair of the firm’s non-compete practice group have written on the firm’s website about two new important laws in Utah, the Post-Employment Restrictions Act and the Computer Abuse and Data Recovery Act.… Continue Reading
A recent unpublished decision of the United States District Court, Eastern District of Pennsylvania, highlights the importance for employers to review carefully their agreements containing restrictive covenants to ensure they do not unintentionally limit the available avenues for relief. In Healthcare Servs. Grp., Inc. v. Fay, 2015 BL 33694 (Oct. 14, 2015), Healthcare sued two … Continue Reading
A recent case from Florida’s Fifth District Court of Appeals underlines the importance for employers to provide a sufficient legitimate business interest to justify enforcement of a non-compete agreement. Where a former employee or contractor is interfering with client relationships, the employer must be careful to point out specific prospective or existing clients when enforcing … Continue Reading
The Louisiana Court of Appeals, First Circuit, recently affirmed a lower court’s denial of a preliminary injunction to enforce a covenant not to compete in Gulf Industries, Inc. v. Boylan (La. App. 1 Cir. June 6, 2014). The case demonstrates continued careful scrutiny by Louisiana courts of non-compete agreements. Gulf Industries provides highway safety, highway construction, … Continue Reading
On November 12, 2013, A court in the U.S. District Court for the District of Massachusetts issued a decision concerning the ongoing debate about the meaning of “exceeding authorized access” under the Computer Fraud and Abuse Act. Moca Systems, Inc. v. Bernier, No. 13-10738-LTS (D. Mass. Nov. 12, 2013). MOCA Systems, Inc. filed suit against its former … Continue Reading
As previously reported in a legal alert issued by Jackson Lewis on May 12, 2011, Georgia Governor Nathan Deal signed the Georgia Restrictive Covenants Act into law almost two years ago, on May 11, 2011. Since that time, many employers have required employees to sign new covenants that comply with the law. The Georgia Restrictive … Continue Reading
North Dakota has one of the fastest-growing workforces in the country as the result of recent advances in extracting natural gas and oil. As more employers seek to hire in or transfer employees to the Peace Garden State, many are surprised to discover that North Dakota law prohibits non-compete agreements. North Dakota Century Code Section … Continue Reading
In the latest chapter of an ongoing dispute between Aon Risk Services and Alliant Insurance Services (stemming from Alliant’s hiring of dozens of Aon employees and accepting millions in annual revenue from former Aon clients), on January 10, 2013, the New York State Supreme Court, Appellate Division, First Department issued a decision upholding key rulings of the … Continue Reading
Tolling clauses in non-compete agreements extend the period of noncompetition by a period of time usually equal to the time an employee is in violation. Appellate courts in some states, including Illinois and Massachusetts, have affirmed injunctions based on contractual extension clauses. For example, in Prairie Eye Center v. Butler, No. 4-01-0005 (Ill. Ct. App. … Continue Reading
Kevlar (R), a high-strength para-aramid fiber created by E. I. du Pont de Nemours and Company and famously used in body armor for soldiers and police officers, is the subject of a recent criminal indictment by the U.S. Justice Department against Kolon Industries, Inc. and several of its executives. According to the October 18, 2012 press … Continue Reading