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UPDATE: Federal Defend Trade Secrets Act Clears the House, Passage into Law Expected

As expected, overwhelming support for the Defend Trade Secrets Act of 2016 led to its passage in the U.S. House of Representatives yesterday by a 410-2 vote. During the floor debate, one Congressman noted that “Congress has...more

Quirky Question #277: Passage of the Defend Trade Secrets Act

Question: I saw something on the news about some new trade secrets legislation. What’s going on with that? Will it help employers better protect their trade secrets?...more

What Tom Brady, Underinflated Footballs, and “Deflategate” Teach Employers About Arbitration

Fans of unscrupulous professional football players and coaches often justify their heroes’ misbehavior with a now-classic sports adage: “If you ain’t cheatin’, you ain’t tryin’.” In the 1970s, for example, legendary Oakland...more

Congress Passes The Defend Trade Secrets Act

Presidential Signature Expected to Follow Shortly - On April 27, 2016, the U.S. House of Representatives voted 410-2 in favor of passing the Defend Trade Secrets Act (S. 1890)(the “Act”), a comprehensive bill to create...more

U.S. Treasury Department Suggests That Non-Compete Reform is Necessary

The U.S. Department of Treasury recently released a study on the effect of non-compete agreements, taking a hard line with respect to their social and economic benefits and purported harms. Specifically, while the authors of...more

The Defend Trade Secrets Act of 2016 – Key Takeaways

The Senate and House passed the Defend Trade Secrets Act of 2016 (DTSA) on April 11 and April 27, 2016, respectively. President Obama previously indicated that he will sign DTSA into law. Below is a brief synopsis of DTSA's...more

Defend Trade Secrets Act Passes Congress

With President Obama’s signature expected, DTSA will allow for new federal civil suits, ex parte seizures, and whistleblower protections. After unanimously passing the Senate earlier this month, the Defend Trade...more

The New “Persuader Rule” and Its Impact on Manufacturers

The federal Office of Labor-Management Standards (“OLMS”) in the Department of Labor issued a Final Rule, on March 24, 2016, that significantly reinterprets the so-called Persuader Activities Rule. This rule represents the...more

Employer May Terminate Pre-Hire Agreement with Union, Sixth Circuit Rules

On April 21, 2016, resolving a situation not previously decided by the Sixth Circuit Court of Appeals, the court held that a construction company that was a party to a pre-hire collective bargaining agreement lawfully...more

Medical Non-Competes in Rhode Island: No Clean Bill of Health

The Rhode Island Superior Court recently refused to enforce a non-compete agreement against a local physician because it was against the public interest. Medicine and Long Term Care Associates, LLC v. Khurshid, PC 2015-0458,...more

Rhode Island Trial Court Decision Could Spell Trouble for Employers Seeking to Enforce Restrictive Covenants Against Healthcare...

One of an employer’s first steps in a suit against a former employee to enforce a restrictive covenant is to seek a preliminary injunction to prevent the employee from continuing to violate his or her contractual obligations....more

The Auto Industry’s Safety Whistleblower Program: What You Need To Know

The Motor Vehicle Safety Whistleblower Program that originally passed through the U.S. Senate last summer but stalled in the House of Representatives has finally been signed into law by President Obama as part of the Fixing...more

Restrictive Covenants: Do Yours Meet a Changing Landscape?

Restrictive covenants are an important tool for businesses concerned about the protection of their confidential business information and the costs of employee training and turnover. When properly crafted and utilized,...more

Quirky Question # 276: Ex-Employees Gone Rogue

Question: Our company utilizes confidentiality agreements to try to protect our confidential and proprietary information. One of our former sales employees recently left us to work for a competing company. We have evidence...more

Trade Secrets Directive

The protection afforded to trade secrets is disparate across the EU. In order to protect trade secrets as potential drivers for economic growth and jobs and to create a level-playing field within Europe, the European...more

DOL Suspends Filing of Certain Parts of Required Form LM-21 Reports

On April 13, 2016, the Office of Labor-Management Standards (OLMS) at the U.S. Department of Labor (DOL) issued a Form LM-21 Special Enforcement Policy announcement. Effective immediately, the policy is suspending the...more

More Updates on the Legal Challenge to DOL’s Final Persuader Rule

The plaintiffs in the first lawsuit challenging the Final Persuader Rule have filed a motion for preliminary injunction, and the U.S. Chamber of Commerce seeks to file an amicus brief in support of that motion. In...more

Federal Defend Trade Secrets Act Clears the Senate: Is the Uniform Act on Life Support?

The U.S. Senate has unanimously approved a bill increasing the protections available to companies for their commercial secrets. The Defend Trade Secrets Act of 2016 (DTSA or the Act) provides for the first time a truly...more

Court Won’t Enjoin Physician Who Breached Non-Compete Covenant And Consented To Injunction

A physician signed a non-compete covenant, agreed to be enjoined if he breached, and allegedly did breach. But when his former employer asked a Providence, Rhode Island Superior Court judge to enter an injunction, he refused...more

You Can’t Put Lipstick On This Pig: Beauty Company’s Non-Compete Deemed Unenforceable

On March 25, 2016, a Massachusetts Superior Court judge struck down skin care salon Elizabeth Grady Face First, Inc.’s (“Elizabeth Grady” or the “Company”) attempt to make its non-compete agreement seem prettier than it...more

New Utah law limits use of noncompetition agreements

Many employers are confronted by the problem of former employees using company information or relationships they had access to or developed during their employment. Employers have sought protection by having employees agree...more

Sun Capital: District Court Relies on Constructive Partnership Theory to Find Separate PE Funds Liable for a Portfolio Company’s...

The most recent Sun Capital decision is a troubling development for private equity fund sponsors and will likely require a “rethink” of fund structuring when private equity funds own portfolio companies with significant...more

Carbajal v. HWBSC Decision Provides Guidance for Drafting Employment Arbitration Agreements

On February 26, 2016, the California Court of Appeal, Fourth District, issued its decision in Carbajal v. HWBSC, Inc., invalidating an employment arbitration agreement due to a number of provisions the Court considered...more

California Supreme Court Upholds Arbitration Agreements That Mutually Exclude Applications for Temporary Restraining Orders and...

On Monday, March 28, 2016, the California Supreme Court affirmed the decision of the Second Appellate District holding that an arbitration agreement in an employment contract is not substantively unconscionable simply because...more

Supreme Court Affirms Class Certification and Judgment Predicated upon "Representative Evidence"

On March 22, 2016, the Supreme Court issued a decision permitting class plaintiffs to rely on "representative" or "sample" evidence to satisfy the prerequisites to class certification and certain elements of their claims. ...more

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