Former Employee

News & Analysis as of

The Dearth of Restrictive Covenant Case Law in Georgia

It was five years ago this week (May 11, 2011, to be precise) that Georgia's new restrictive covenant statute went into effect. Prior to the effective date of the statute, Georgia was (surprisingly for many out-of-state...more

Utah's New Post-Employment Restrictions Act Effective Tomorrow

Utah's newly enacted Post-Employment Restrictions Act (Act) takes effect tomorrow and significantly limits the duration of newly entered noncompetition agreements. Employers should review their noncompetition agreements going...more

Pescetarian’s Delight: Ninth Circuit Extends Non-Compete Term Beyond Contractual Period

Does this sound familiar: employee disregards a non-compete and joins a competitor; former company calls foul and initiates a lawsuit; parties fight it out, but by the time litigation has run its course, the non-compete...more

Despite Evidence That Ex-Employee Violated Customer Non-Solicitation Covenant, Injunction Denied Because No “Irreparable” Harm

Touzot was an employee of ROM, a seller of products used in making balsa wood model planes and boats. His employment agreement included a post-termination customer non-solicitation covenant. After he left ROM, he became a...more

Non-Compete Restriction Held To Be Unenforceable

In Bartholomews Agri Food Ltd v Thornton [2016] EWHC 648 (QB), the High Court considered whether a non-compete post-termination restriction was an unlawful restraint of trade. Bartholomews Agri Food Ltd (Bartholomews)...more

Two Things You Can Do To Reduce the Likelihood That Your Company Will Be Found Liable For Conspiring Or Aiding And Abetting In An...

When companies sue their former employees for theft they often claim that the former employee’s new employer has conspired with the former employee to misappropriate trade secrets, or that that new employer has aided and...more

In 10-1 Verdict, Jury Finds No FCA Violation by Abbott Laboratories

On April 7, 2016, after just three hours of deliberations following a three-week trial, a federal jury dismissed False Claims Act (“FCA”) claims against Abbott Laboratories brought by a whistleblowing former employee.  The...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

Whistleblowers Suffer Another Implied Certification Theory Defeat — But Supreme Court Showdown Looms

Adding its voice to an issue soon to be argued before the Supreme Court, an Alabama federal court recently dismissed a False Claims Act (“FCA”) complaint, holding that complying with a federal disclosure regulation was not a...more

New Utah Law Limits Restrictive Covenants to a One-Year Period

On March 9, 2016, Utah enacted the Post-Employment Restrictions Amendments, which limits restrictive covenants to a one-year time period from termination. Any restrictive covenant that is entered into on or after May 10,...more

Breaking up is hard to do

So, your star employee has resigned. What happens next can be crucial for your brand. The way a business responds to the resignation of a star employee is a touchstone of successful HR leadership. Employees, competitors,...more

Utah Passes Bill Regulating Non-Competes

After heated debate between legislators and among the business community, the Utah state legislature has passed HB 251, the Post-Employment Restrictions Act. As passed, the Act prohibits “post-employment restrictive...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

Social Media Fail: Sometimes Even Employers Memorialize Bad Decisions on the Internet

Don’t deny it: you scroll through your social media feeds past the mundane photos, click-bait, and “humble brags” in search of explosive drama. Eventually, you might land on a status update from one of the reliable...more

OCR for the Win: Lincare, Inc. HIPAA Enforcement Action

For the second time in history, on January 13, 2016, an Administrative Law Judge (ALJ) upheld the imposition of civil money penalties charged against a covered entity by the Office of Civil Rights in the Department of Health...more

Is the Washington Legislature Caching Out Noncompete Agreements? How This Change Might Affect Your Ability to Protect Your...

For tech giants like Microsoft and Amazon, and any number of emerging tech companies, tech professionals are a hot commodity in the state of Washington. No doubt, the competition is fierce here in Seattle and within the...more

Employers Generally Do Not Owe Fiduciary Duties To Employees

In Espinosa v. Aaron’s Rents, Inc., a former employee sued his former employer for defamation and other torts related to the defendant reporting the plaintiff to the police for alleged theft. No. 01-14-00843-CV, 2016 Tex....more

S.D.N.Y Dismisses Former Employee’s SOX and Dodd-Frank Whistleblower Claims

The U.S. District Court for the Southern District of New York recently granted a motion for summary judgment dismissing a plaintiff’s SOX and Dodd-Frank whistleblower claims. The court ruled that the plaintiff failed to...more

Cybersecurity and Data Privacy and E-Discovery and Information Management: Second Circuit Draws Line Between Employees and Hackers...

Employers in New York face a heightened hurdle to holding employees legally accountable for theft and other misuse of company data after the Second Circuit’s recent decision in United States v. Valle. The Court has held that...more

Illinois Supreme Court Decision Bars Employee from Bringing a Direct Civil Action against Employer for Alleged Asbestos Exposure...

In Folta v. Ferro Engineering, Ill.S.Ct. Docket No. 118070, Nov. 4, 2015, the Illinois Supreme Court reversed an Illinois Appellate Court decision and held that a personal injury and subsequent wrongful death suit brought on...more

“Reasonable Suspicion” of Trade Secret Misappropriation Isn’t Always Enough

Though an employer may be eager to bring a trade secret claim against former employees as soon as possible, filing suit before properly vetting the claim can lead to serious consequences: a malicious prosecution case against...more

Will The CFAA, An Old Anti-Hacking Law, Apply To Password Sharing?

David Nosal, an ex-employee of Korn Ferry International (“KFI”), convinced some of his former colleagues to download source lists from KFI using their log-in credentials and the log-in credentials of another employee. In...more

T.J. Simers Discrimination Trial: At Last, The “Ethical Breach”!

Last week, I mentioned that I still didn’t really understand what “ethical breach” Mr. Simers had allegedly committed, and I threw out a request for help from someone (anyone?) with a media background....more

Disgruntled Former Tribune Company Employee Who Aided Hacking Convicted; Could Face Jail Time

On October 7, 2015, former Tribune Company employee Matthew Keys was convicted of three felonies stemming in part from assistance he provided to the hacking collective Anonymous to alter content on the LA Times’ website. ...more

T.J. Simers Discrimination Trial: “He Lied, And He Went Too Far!”

Mr. Simers’ attorneys called at least two Times executives to the stand this week as adverse witnesses. One, who was the newspaper’s Human Resources director in 2013, testified that Mr. Simers lied when he told Times...more

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