Tag Archives: Noncompete

What To Do When You Hire A Thief

Trade Secrets
Employers victimized by trade secret misappropriation appropriately express righteous outrage, both at the offending ex-employee and sometimes at the new employer. However, on another day the roles can reverse: That same employer may unwittingly — or worse, intentionally — have hired someone who has stolen trade secrets or confidential information. Failure to take appropriate precautions … Continue reading this entry

State Attorneys General on the Attack Against Noncompete Overuse

di_trade
Too much of a good thing can be bad – a maxim that some employers have historically ignored by requiring entire workforces, including rank-and-file employees, to submit to post-employment noncompete obligations as a condition of continuing employment. In recent months, however, state attorneys general, specifically in New York and Illinois, have put significant heat on … Continue reading this entry

Thieves Among Us? Protecting Trade Secrets From Employee Theft

da_trade
Employee trade secret theft is a serious problem, and getting worse. According to an analysis of federal court cases filed over a 58-year period, 85 percent of trade secret theft was committed by employees or business partners. In addition, the cases doubled from 1988 to 1995 and again from 1995 to 2004, with a trajectory … Continue reading this entry

Illinois Strikes Down Restrictive Covenant

On June 24, 2013, an appellate court in Illinois made it more difficult for Illinois employers, including those in the automotive industry, to enforce non-solicitation and non-competition provisions. Specifically, the court determined that such restrictive covenants won’t be enforceable unless the employee in question works for at least two years after signing the restrictive covenant. … Continue reading this entry

Illinois Supreme Court Resolves Appellate Court Split Over Viability of Legitimate Business Interest Test

The Illinois Supreme Court has determined that, notwithstanding a 2009 Illinois appellate court decision to the contrary (Sunbelt Rentals, Inc. v. Ehlers), Illinois courts must consider whether a former employer’s noncompete agreement protects a legitimate business interest. In Reliable Fire Equipment Co. v. Arrendondo, the Court reflected on the Fourth District Appellate Court’s Sunbelt decision and determined that … Continue reading this entry

Is There a Doctor in the House...Outside His or Her Restricted Territory?

Should physicians be subject to a different noncompete standards than other professionals? Several states have established laws, through statute and case law, on the topic of physician non-competes, and yet we are still far from a consensus.… Continue reading this entry

Non-Competition v. Unfair Competition in California

We all know that California does not permit enforcement of non-compete agreements. Despite this broad prohibition, the federal court’s recent decision in Richmond Technologies, Inc. v. Aumtech Business Solutions, No. 11-CV-02460-LHK, 2011 WL 2607158 (N.D. Cal. July 1, 2011) confirms another overriding general rule: courts do not like deceptive behavior of former employees – even … Continue reading this entry

The Times They Might Be A-Changin' in Georgia, Massachusetts and Illinois

As many of us in the noncompete world are aware, the law of noncompetes is constantly evolving and changing, sometimes by court decisions like the Sheshunoff decision in Texas, and sometimes by statute, like in Oregon. There are three legislatures currently considering new noncompete bills: Georgia, Illinois and Massachusetts (linked to my good friend and … Continue reading this entry

Emailed Policy Updates for Noncompetes - Not A Best Practice

A technological solutions company that emailed policy updates to its employees, but did not have the employees sign for the update, could not enforce a noncompete provision against one of its employees in Mississippi. The court ruled that the update might have been enforceable if it did not contain a signature line, which the employee … Continue reading this entry