Recent Blog Posts
- 7th Circuit Shows Zero Tolerance for Dishonesty or Disrespect in Recent Trade Secrets Case Following what it described as a three year “one-man legal circus,” a Seventh Circuit panel recently affirmed a sanction award of over $440,000 in a trade secret misappropriation case, after finding that the defendant, Raj Shekar, “demonstrated nothing but disrespect, deceit, and flat-out hostility[.]” Teledyne Technologies Incorporated v. Raj Shekar, No. 17-2171, 2018 U.S. App. LEXIS 17153, at *13 (7th Cir. June 25, 2018).
Shekar worked at Teledyne Technologies as a marketing and sales manager from June 2013 until he was... More
- “Janitor Problem” Sinks Illinois Non-Compete We non-compete lawyers often rely on an old rule of thumb when analyzing the enforceability of a non-compete: if the restriction is so broad that it would even prohibit an employee from working as a janitor for a competitor, then it is very unlikely to be enforced by a judge. And so when a federal judge expressly endorses such a rule of thumb, the urge to blog about it is simply irresistible.
In Medix Staffing Solutions Inc. v. Daniel Dumrauf, Judge... More
- Non-Compete Laws: Illinois Guide Published with Thomson Reuters Practical Law We just published an article with Thomson Reuters Practical Law discussing non-compete agreements between employers and employees for private employers in Illinois. With Thomson Reuters Practical Law’s permission, we have attached it here.... More
- Wisconsin Supreme Court Strikes Down Co-Worker Non-Solicitation Clause Of the various types of post-employment restrictions imposed on employees, a restriction on the recruitment of former co-workers (sometimes referred to as a “no-poach” or “anti-raiding” clause) is the type most likely to be enforced by a court. As a result, this is one type of post-employment restriction that is frequently drafted without the careful thought generally put in to traditional non-competes and client non-solicitation clauses. But in what could be a foreshadowing of closer judicial scrutiny of co-worker non-solicitation... More
- Another Chapter in the Battle Against Non-Competes for Low Wage Workers in Illinois Earlier this week, Illinois Attorney General Lisa Madigan sued payday loan company Check Into Cash of Illinois, LLC for allegedly requiring that all of its employees in Illinois, regardless of position or pay, sign a standard non-compete agreement which broadly limits their employment mobility for one year post-termination.
According to the Complaint, Check Into Cash’s standard non-compete agreement effectively precludes employment with any entity that offers any “consumer lending service,” regardless of whether the entity is an actual competitor; it applies... More
- 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