Recent Blog Posts
- Garden Leave Provisions Article Published with Practical Law Company We just published an article with the Practical Law Company discussing garden leave provisions in employment agreements. With PLC’s permission, we have attached it here.... More
- Practice Note with the Practical Law Company: Trade Secrets Litigation We just published a Practice Note with the Practical Law Company discussing litigation for employers whose employees have misappropriated trade secrets. With PLC’s permission, we have attached it here.... More
- LinkedIn “Connection” Request Did Not Violate Non-Solicit In this age of social media, a frequently asked question is whether social media activity can violate a non-compete or non-solicit. Although the case law is evolving, courts which have addressed the issue have focused on the content of the communication, rather than the medium used to convey it. In so doing, they have distinguished between mere passive social media activity (e.g., posting an update about a new job) as opposed to more targeted, active actions (e.g., not merely posting... More
- Even If a Trial Court Denies Your Injunction, If Your Request Is Well-Founded, Consider an Immediate Appeal In non-compete matters, it is often said that trial judges dislike enjoining individuals and will go out of their way to avoid doing so. A recent decision by the Florida Court of Appeals, Allied Universal Corporation v. Jeffrey B. Given, may be a good example of such a situation – as well as an example of an employer that took an immediate appeal and got the relief it wanted.
In Allied Universal, the trial court denied a motion for a preliminary... More
- No Insurance Coverage In Trade Secrets Lawsuit Insurance coverage is not something which comes to mind when thinking about trade secret misappropriation. In fact, since this blog was started in 2009, I cannot recall a single post about an insurance coverage issue.
That being said, one of the first things prudent defense counsel will do when a client is sued for alleged trade secret misappropriation is to instruct their client to notify their insurance carrier and inquire as to whether there is coverage for some or all of... More
- Employer’s Waiver Of Non-Compete Period In Order To Avoid $1 Million Payment Held Ineffective In Reed v. Getco, LLC, the Illinois Court of Appeals was recently faced with an interesting situation: under a contractual non-compete agreement, the employer was obligated to pay the employee $1 million during a six month, post-employment non-competition period. This was, in effect, a form of paid “garden leave” — where the employee was to be paid $1 million to sit out for six months – perhaps to finally correct his golf slice or even learn the fine art of... More
- Illinois Passes Law Banning Noncompete Agreements for Low Wage Workers Illinois recently became one of the first states to ban non-compete agreements for low wage workers when it passed the Illinois Freedom to Work Act. The law, which takes effect on January 1, 2017 and applies to agreements signed after that date, bars non-compete agreements for workers who earn the greater of 1) the Federal, State, or local minimum wage or 2) $13.00 an hour. At present, because the State minimum wage is below $13.00 per hour, $13.00 an hour... More
- Defend Trade Secrets Act Signed Into Law On May 11, 2016, President Obama signed into law the Defend Trade Secrets Act (“DTSA”), which became effective immediately. The DTSA provides the first private federal cause of action for trade secret misappropriation, and it allows parties to sue in federal court for trade secret misappropriation—regardless of the dollar value of the trade secrets at issue.
Although the DTSA’s remedies largely overlap with those in the 48 states that have adopted some version of the Uniform Trade Secrets Act, the DTSA will... More
- In Today’s Environment, What Is “Adequate Consideration” for a Restrictive Covenant Signed by an Existing Employee? Employers seeking to require an existing employee to sign a restrictive covenant should consider current litigation trends surrounding what constitutes “adequate consideration.” Under the traditional rule followed by a majority of states, continued employment, standing alone, is adequate consideration for a restrictive covenant signed by an at-will employee. Several courts, however, have recently reexamined this issue, so employers must be aware of differences among the states as to whether some consideration beyond mere continued at-will employment is required.
Fifield v. Premier... More
- Sixth Circuit Affirms $3.7 Million Award And Permanent Injunction In Trade Secret/Breach Of Duty Of Loyalty Case In Nedschroef Detroit Corp. et al. v. Bemas Enterprises et al., the U.S. Court of Appeals for the Sixth Circuit recently affirmed an award of nearly $3.7 million in damages against two individuals found to have engaged in misconduct related to the operation of a business which competed with their employer.
Nedschroef Detroit Corporation (“Nedschroef”) services and provides replacement parts for fastener machines made by an affiliate in Europe. Without Nedschroef’s knowledge, two of its employees formed a business – under... More