Confidentiality Agreements Non-Compete Agreements

News & Analysis as of

Eighth Circuit Decision Suggests Employers May Have An Alternative Option to Using Non-Compete Agreements

A recent Eighth Circuit Court of Appeals decision suggests another avenue for employers to secure damages from an employee who competes against them after employment ends – without the use and many limitations of a...more

Ex-Employee Hit With Six-Figure Judgment For Violating His Non-Competition Agreement By Helping His Son Compete

A long-running non-compete clause dispute has reached the Louisiana Court of Appeal three times. Last month, the court affirmed a $600,000 judgment, plus attorneys’ fees and costs, against an ex-employee who assisted his...more

Take Care in Drafting: Meschino v. Frazier Industrial Co. is a Cautionary Tale for Employers

In Meschino v. Frazier Industrial Co., Civil No. 15-10327-RGS, 2015 WL 7295463 (D. Mass. Nov. 18, 2015), Judge Stearns held that an employment agreement superseded an earlier employment agreement and a separate earlier...more

Steps Every Startup Should Take to Protect its Intellectual Property

Many startup entrepreneurs are not aware of California’s laws around the ownership of intellectual property. And for most, the concepts for products or services are the life-blood of a company’s operations and future....more

5 Tips for Retaining Employees in the Automotive Industry

Attracting and retaining employees in the automotive industry can be very challenging, especially when competitors are doing what they can to lure the best talent. After you provide an employee with a good job, training and...more

Five Easy Tips for Improving Your Company’s Non-Compete and Confidentiality Agreements and Related Practices Now

As January quickly passed by and new projects increase by the day, there is still a golden opportunity to capitalize on some low-hanging fruit to immediately improve your company’s practices and add immediate value to your...more

Top 10 Developments/Headlines in Trade Secret, Computer Fraud, and Non-Compete Law in 2015

Continuing our tradition of presenting annually our thoughts concerning the top 10 developments/headlines this past year in trade secret, computer fraud, and non-compete law, here—in no particular order—is our listing for...more

Five Tips for Retaining Employees in a Competitive Business Climate

Attracting and retaining employees is always a challenge. After you provide an employee with a good job, training and development, customer contacts, and access to trade secret and other confidential information, it is...more

Non-Disclosure Agreement Enforceable Although Unlimited In Time And Area

A salesman for a medical device manufacturer signed a confidentiality covenant at the time he was hired. A dozen years later, he resigned and went to work for a competitor. The former employer sued him in an Ohio federal...more

Protecting Company Relationships and Information Upon an Employee Departure

Learn how your company can prepare to act quickly and strategically to protect important relationships, information and trade secrets at the time that a key employee leaves. This webinar will review the latest developments in...more

Michigan Federal Court Rejects As Dicta Sixth Circuit’s Broad Computer Fraud and Abuse Act Interpretation

While employee Lehman was employed by Experian and allegedly subject to various employment covenants, he incorporated Thorium, a competitor. After Experian laid him off, he operated Thorium. Experian sued Lehman and Thorium...more

Essential Protection: Restrictive Covenants of Your Employees

No one knows your company better than your employees. And while great employees can be your most valuable asset, disloyal employees can use their insider information to harm or compete against you. You need protection, and an...more

Considering Selling Your Company? Tip #2: Stage Your Company

Nearly every founder or executive considers selling their company at one point or another. Before embarking on the complex process, it is crucial for the company leaders – especially within the ever-evolving tech community –...more

Five Tips for a Successful Exit

Any number of factors can trigger a tech company’s exit: worn-out founders, anxious investors, industry consolidation, or wild, Instagram-like success. As tech founders and executives contemplate the possibility and timing of...more

No Trade Secret in Visual Aspects of Software: The Need for Non-Compete Agreements

?A federal appeals court recently ruled that “features and functions” of software programs are not trade secrets, particularly when those with access are not required to sign confidentiality agreements. Because trade secret...more

Technology Blunder Lands Ex-Employee In Court

The Winston-Salem Journal (my hometown paper – yay!) reports that a company is suing a former employee in the North Carolina Business Court for breach of his confidentiality and non-compete agreements.* *The article...more

New York Court of Appeals Advises Employers to Take Time to Present Restrictive Covenants to New Employees

It is not uncommon for employers to present restrictive covenants, such as non-competition, non-solicitation, or confidentiality agreements, to new employees in a stack of orientation paperwork. A recent case from New York’s...more

Startups and the Beginning of the Employment Relationship - Who, What, When, Where, and Why?

WHO to Hire? Startup companies can reduce or eliminate future problems with employees through careful hiring practices. Best practices include...more

LOIs are nothing to LOL about: A primer on letters of intent

Letters of Intent can be minefields. On the one hand, business people want to use them to tie up a deal. On the other, they don’t want to be bound by them if they want to walk away. As one court explained, “It is a common...more

Employment Flash - July 2015

The July 2015 edition of Employment Flash covers a number of developments, including: the U.S. Supreme Court's ruling that job applicants need only show that a religious accommodation was a factor in denying employment to...more

Thieves Among Us? Protecting Trade Secrets From Employee Theft

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...more

Cracks in the Fifield Armor?: New Dissent Marks First Big Challenge to Illinois' Bright-Line Restrictive Covenant Rule

When continued employment is the sole consideration for a post-employment restrictive covenant (such as a noncompetition agreement), the Illinois Supreme Court requires that an employee be continually employed for a...more

Restrictive Covenants – A Close Call Goes The Employer’s Way

A very recent federal court decision, A.H. Harris & Sons, Inc. v. Naso, 2015 WL 1420132 (D.Conn.), illustrates how judges weigh various facts when deciding to grant or deny a preliminary injunction in a restrictive covenant...more

There's A Difference Between "Confidential And Proprietary Information" And A Trade Secret

I can't remember the last time that the Business Court granted a motion opposing the designation of a case as a mandatory complex business case. And since the Business Court Modernization Act went into effect in October...more

Competing After Employment (Part 2)

A few weeks ago, Jawbone, a fitness tracking hardware and software maker, sued its arch-rival Fitbit, alleging that Fitbit lured its employees away to obtain access Jawbone’s confidential information and product plans. How...more

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