Former Employee

News & Analysis as of

Employees Bound by Non-Compete Agreement When They Clicked “Accept” to a Bonus on Intranet

Two employees who clicked “accept” on an online form in order to receive a bonus were bound by additional language that included an agreement to not compete in the future. Messrs. Lynch and Halpin worked in sales for ADP, and...more

Employees Bound By Non-Compete By Clicking On Box To Accept Stock Grants

Employees at payroll processing giant ADP were held to the terms of a non-compete contained in online stock award documents when they clicked the “I have read and agreed” button in order to receive stock grants. On February...more

Defending A Former Employee On a Non-Compete Or For Misappropriation Of Trade Secrets? Read This.

Do you really have to rush to Court to obtain an injunction for a misappropriation of trade secrets? Maybe not. But for an injunction enforcing a non-compete agreement, maybe yes. ...more

"President Trump Issues Executive Order Requiring Ethics Pledge"

On January 28, 2017, President Donald Trump signed an executive order titled “Ethics Commitments by Executive Branch Appointees” (the Order). This Order requires every full-time political appointee to sign an Ethics Pledge...more

Arming Employers Against Internal Hackers, the 11th Circuit Clarifies CFAA’s “Loss” Requirement

The Eleventh Circuit ruled last week in a wrongful discharge turned Computer Fraud and Abuse Act (“CFAA”) case, spinning the employee’s case against his employer on its head. The facts of Brown Jordan International, Inc. v....more

Apples and Oranges: Rollovers, Qualified Plans, and The Best Interest Exemption

One of the wrinkles of the new fiduciary rule is the requirement of a financial advisor who wants to solicit former plan participants for a rollover to review the costs involved with the plan to determine whether moving the...more

Commercial Division Rejects Employers’ Plea For Trade Secret and Trademark Protection

When employees resign, the scope of the trade secret doctrine often defines the relationship between former employers and their employees. Trade secret misappropriation claims frequently overlap with other claims arising out...more

The Peculiar “Personnel-ity” of California Personnel File Inspection Laws

Seyfarth Synopsis: Within the last few years, the California Legislature has amended laws related to an employee’s right to inspect personnel records, intending to ensure employees have access to those records. Since then,...more

USERRA No Bar to Enforcing Employment Arbitration Agreement, Federal Appeals Court Rules

The Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA) does not prohibit compelling a former employee to arbitrate his USERRA claims under an arbitration agreement, the U.S. Court of Appeals for the...more

A Reminder To Be Careful With Ex-Employees And Confidential Information

A lot of companies rely on retired and otherwise former employees for information in litigation – including product liability litigation. Particularly where a product (such as a drug that’s now gone generic) has a long...more

Attorney-Client Privilege in Washington State No Longer Applies When Employment Ends

In order to preserve the attorney-client privilege, counsel who conduct internal investigations begin employee interviews with an “Upjohn Warning”—a disclosure indicating that counsel represents the employer, not the...more

What Underlying Facts are Required to Assert a Valid CFAA Claim Based on “Exceeds Authorized Access” in Georgia?

The Computer Fraud and Abuse Act (“CFAA”) gives rise to an actionable claim if someone “knowingly access[es] a computer without authorization or exceed[s] authorized access.” 18 U.S.C. § 1030(a)(1). The term “exceeds...more

Washington Supreme Court Creates Bright-Line Rule - Postemployment Communications Between Former Employees and Corporate Counsel...

The Washington Supreme Court held in a 5-4 vote that attorney-client privilege does not apply to communications between corporate counsel and former corporate employees, even if the communications concern what the employees...more

Prescribing the “minimum effective dose”

Drafting and enforcing post-employment restraints has a lot in common with good medicine. It is necessary to prescribe only the “minimum effective dose” – the amount necessary to produce the desired outcome with minimum...more

The SEC Hates It When You Discourage Whistleblowing

There have been lots of developments on the whistleblower front over the last couple months, and we’ve covered none of them here at Cady Bar the Door. Let’s try to catch up. Today we’ll discuss the first of this recent...more

SEC directs specific communication to employees regarding whistleblowing

In many investigations, whether internal or in response to government inquiries, employers may take action to terminate employees. A recent US Securities and Exchange Commission (SEC) resolution in the context of the US...more

4.5 Million Reasons to Abide by a Non-Solicitation Agreement

On September 9, 2016, the Pennsylvania Superior Court upheld an award of $4.5 million in punitive damages against several former employees, who violated non-compete/non-solicitation agreements with their former employers. In...more

Ownership of Copyright in Software

Can an employee claim to own the employer’s software? An “author” of a work is the first owner of copyright. To determine ownership, it’s necessary to determine which contributions will be considered “authorship” for...more

Ninth Circuit Issues Two Recent Decisions Further Definining Liability Under the Computer Fraud and Abuse Act

In July, the Ninth Circuit Court of Appeals issued two decisions by which it intends to clarify liability under the federal Computer Fraud and Abuse Act, 18 U.S.C. § 1030 (“CFAA”). The CFAA imposes criminal penalties and...more

A Rose by Any Other Name is Not as Sweet: When a Non-Solicit is Actually a Non-Compete

The Ontario Court of Appeal has held that the words “accept business”, in what the employer intended to be a non-solicitation clause, served to restrict competition and is therefore not merely a non-solicitation...more

Texas Appellate Court Affirms Injunctive Relief and $2.8 Million Award in Attorney’s Fees Against Former Employee in Trade Secret...

A Texas Court of Appeals held on August 22, 2016, that a former employer was entitled to $2.8 million in attorney’s fees against a former employee who used the employer’s information to compete against it. The Court reached...more

Privilege and Practical Implications of Former Employees' Unauthorized Disclosures

Historical facts never deserve privilege protection. Something either happened or it didn't happen. But some litigants erroneously point to this axiom in seeking to discover factual portions of clients' privileged...more

Poachers Beware: Wisconsin Court Rules That Restrictions on Employee Solicitation Are Subject to Law Governing Noncompetes

In a case of first impression, the Wisconsin Court of Appeals held that anti-poaching provisions in post-employment restrictive covenants are subject to the statutory regulations that govern noncompete agreements in...more

Industrial Espionage and the Defend Trade Secrets Act

American corporations are facing an ever increasing threat of misappropriation of their valuable trade secrets through industrial espionage, defined as the theft of a company’s trade secrets by an actor intending to convert...more

Agreement Prohibiting Solicitation of Employees by Former Employee may be Unenforceable

A recent decision from the Wisconsin Court of Appeals has raised serious questions regarding non-solicitation agreements that are often included as part of an employment agreement or severance agreement. A non-solicitation...more

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Cybersecurity

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