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Non-Compete and Trade Secrets Blog

A federal appeals court recently ruled that an overbroad “no-rehire” provision in a settlement agreement with a former employee can be an unlawful restraint of trade under California law.

It has now been over two years since the Defend Trade Secrets Act went into effect. How have courts been applying the controversial civil seizure remedy?

It finally happened. After years of debate on Beacon Hill, Massachusetts law makers agreed to reform the Commonwealth’s treatment of noncompetition agreements. Among other things, the bill precludes enforcement of noncompetition agreements against non-exempt employees, limits their length to just 12 months, and precludes the use of “continued employment” as acceptable consideration. If signed by the Governor, the bill will apply to agreements entered into on or after October 1, 2018.

No Poach Agreements in the fast-food industry have garnered the attention of attorneys general in ten states and the District of Columbia. The development is the latest in a series of action at the state level giving restrictive covenants increased scrutiny. It adds to the enforcement efforts at the federal level by the U.S Department of Justice that has brought enforcement actions against several large U.S. companies and has a number of ongoing investigations

In a recent decision, the Northern District of Illinois touched on two key areas of employment law. The decision highlights the importance of sufficiently tailoring non-solicitation agreements, and implementing adequate measures to ensure trade secrets are maintained as confidential at all times

In a trade secrets matter, Magistrate Judge Jeffrey Cole of the Northern District of Illinois rejected Motorola’s attempt to compel the imaging of the computers of a number of Hytera employees. The decision is especially interesting with respect to the intersection between computer forensics and proportionality.

In the final installment of our three-part series, we highlight restrictive covenant reform legislation that is currently pending before the state legislatures.

Since October 2016 and the Call to Action by the White House, eight (8) states have enacted some type of restrictive covenant reform. This post discusses those efforts and provides an analysis of each new state law that we have seen.

State legislatures across the country have been active in recent years proposing and enacting legislation that impacts employers’ use of restrictive covenants. In a series of three posts, we will examine how this movement started, where it has gone, and where it is going.

Nondisclosure agreements are not enough to fully protect the value of a company’s proprietary information. The $30 million dollar jury verdict in BladeRoom v. Facebook, et al. is not inconsequential, to be sure, but it represents only ten percent of the recovery that BladeRoom was seeking against Facebook and Emerson Electric.

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