On Friday, July 9, 2021, the Biden Administration released its executive order on “Promoting Competition in the American Economy.” We previously wrote about the forthcoming order and predicted that the executive order’s...more
The Biden Administration plans to issue an executive order calling on the Federal Trade Commission (FTC) to adopt rules to limit the use of noncompete clauses in employment agreements. According to Axios, White House Press...more
As many of our blog readers will know, the enforceability of restrictive covenants often depends on which state’s law applies to the dispute. For example, California is well known for refusing to enforce employee...more
The “return to normal” in courts across the country has brought with it a flurry of trade secrets decisions that address some interesting and instructive issues, both procedurally and substantively....more
We previously wrote about whether Peloton instructors are (or should be) subject to non-compete agreements owing to their prominent role as the “face” of the company. ...more
6/1/2020
/ Advertising ,
Competition ,
Contract Terms ,
Endorsements ,
Influencers ,
Intellectual Property Protection ,
Marketing ,
Non-Compete Agreements ,
Non-Disparagement Provisions ,
Restrictive Covenants ,
Social Media
As the global economy falters, a fortunate few companies have seen tremendous growth as a result of the COVID-19 crisis. Among the companies benefitting from the shelter-in-place orders currently in effect is Peloton...more
One of the first things a company should do when it suspects that its trade secrets have been compromised or that an employee has violated post-employment restrictive covenants is to conduct an investigation. ...more
4/20/2020
/ Confidential Information ,
Data Security ,
Electronically Stored Information ,
Forensic Examination ,
Information Technology ,
Intellectual Property Protection ,
Investigations ,
Misappropriation ,
Remote Working ,
Restrictive Covenants ,
Risk Management ,
Trade Secrets
We have previously written about the effects of COVID-19 on the way we currently work, as well as how businesses need to adapt to protect their trade secrets, customer goodwill, and other interests. ...more
Imagine this scenario: You are the general counsel of a company in a particularly competitive industry. A key company employee who has access to some of the company’s most sensitive information has been working remotely for...more
4/14/2020
/ Administrative Proceedings ,
Cease and Desist Orders ,
Coronavirus/COVID-19 ,
Courthouses ,
Discovery ,
Forensic Examination ,
Forum ,
Injunctions ,
Intellectual Property Protection ,
Judicial Proceedings ,
Restrictive Covenants ,
Trade Secrets
As we have previously reported, courts across the country are adjourning most appearances, including trials, and hearing only “emergency matters” during the current COVID-19 crisis. ...more
According to a March 26, 2020, News Release issued by the Department of Labor (“DOL”), initial unemployment claims in the United States soared to a seasonally adjusted 3.3 million the week ending March 21, 2020, the greatest...more
In the world of trade secret and restrictive covenant litigation, time is often of the essence. Clients need to take immediate steps to prevent the harm that flows from the misappropriation of confidential information....more
In-house attorneys often wear multiple hats when performing work for private companies. Some of their work clearly falls under the provision of legal services, while others can be less clear quasi-business roles. ...more
Within the last five months, the two executive arms responsible for enforcing antitrust laws—the US Department of Justice (“DOJ”) and the Federal Trade Commission (“FTC”)—held public workshops to examine the effect of...more
1/24/2020
/ Antitrust Provisions ,
Competition ,
Contract Terms ,
Corporate Counsel ,
Department of Justice (DOJ) ,
Employment Contract ,
Federal Trade Commission (FTC) ,
FTC Act ,
Hiring & Firing ,
Job Applicants ,
Low-Wage Workers ,
Non-Compete Agreements ,
Public Workshops ,
Restrictive Covenants ,
Rulemaking Process ,
Sherman Act ,
UDAP
Last summer, after a decade of fits and starts, and just minutes before the end of the 2018 legislative session, the Massachusetts legislature finally passed comprehensive non-compete reform, which went into effect on October...more
12/17/2019
/ Confidential Information ,
Contract Terms ,
Employer Liability Issues ,
Employment Contract ,
Exempt-Employees ,
Hiring & Firing ,
Intellectual Property Protection ,
Labor Regulations ,
Legislative Agendas ,
Non-Compete Agreements ,
Physician Assistants ,
Proposed Legislation ,
Restrictive Covenants ,
State and Local Government
As we previously covered, a group of 18 state attorneys general in July filed comments with the Federal Trade Commission (“FTC”), asking the FTC to incorporate labor concerns when reviewing corporate mergers and to use its...more
12/16/2019
/ Antitrust Provisions ,
Competition ,
Confidential Information ,
Contract Terms ,
Employment Contract ,
Federal Trade Commission (FTC) ,
Hiring & Firing ,
Intellectual Property Protection ,
Non-Compete Agreements ,
Regulatory Oversight ,
Restrictive Covenants ,
Sherman Act ,
Trade Secrets
Manhattan restaurant Sottolio, Inc., d/b/a Norma Gastronomia Siciliana hired Giuseppe Manco—“a noted Italian pizza chef, or pizzaiolo”—to consult on its menu. At the same time, Manco and his wife purchased a 9% interest in...more
12/11/2019
/ Breach of Contract ,
Confidential Information ,
Contract Terms ,
Economic Impact Analysis ,
Intellectual Property Protection ,
Legitimate Business Interest ,
Motion to Dismiss ,
Non-Compete Agreements ,
Non-Disclosure Agreement ,
Proprietary Information ,
Recipes ,
Restaurant Industry ,
Restrictive Covenants
A law firm can terminate an at-will lawyer who refuses to sign an agreement prohibiting them from soliciting the firm’s customers or clients following cessation of employment, according to the Supreme Court of Kentucky. In...more
12/11/2019
/ Appeals ,
At-Will Employment ,
Contract Terms ,
Employer Liability Issues ,
Employment Litigation ,
Hiring & Firing ,
KY Supreme Court ,
Legal Representatives ,
Non-Solicitation Agreements ,
Restrictive Covenants ,
Solicitation ,
Unlawful Practices ,
Wrongful Termination
Following in the footsteps of its neighbors Maine, Massachusetts, and New Hampshire, Rhode Island recently enacted legislation that restricts the use of non-competition agreements with certain types of employees. The Rhode...more
11/6/2019
/ Confidential Information ,
Contract Terms ,
Employer Liability Issues ,
Employment Contract ,
Fair Labor Standards Act (FLSA) ,
Hiring & Firing ,
Intellectual Property Protection ,
Labor Regulations ,
Low-Wage Workers ,
New Legislation ,
Non-Compete Agreements ,
Restrictive Covenants ,
State and Local Government ,
State Labor Laws
Senators Chris Murphy (D-Conn.) and Todd Young (R-Ind.) have introduced legislation entitled the Workforce Mobility Act (“WMA”). The WMA, like its prior incarnation from last year, seeks to ban non-compete agreements outside...more
10/31/2019
/ Confidential Information ,
Contract Terms ,
Employer Liability Issues ,
Employment Contract ,
Hiring & Firing ,
Intellectual Property Protection ,
Labor Regulations ,
Legislative Agendas ,
Low-Wage Workers ,
Non-Compete Agreements ,
Proposed Legislation ,
Regulatory Agenda ,
Restrictive Covenants ,
Rulemaking Process ,
Threshold Requirements
On June 28, 2019, Governor Mills signed LD 733, An Act To Promote Keeping Workers in Maine, into law. The Act places limits on non-compete agreements and bans restrictive employment agreements....more
8/7/2019
/ Confidential Information ,
Contract Terms ,
Employer Liability Issues ,
Employment Contract ,
Hiring & Firing ,
Intellectual Property Protection ,
Low-Wage Workers ,
New Legislation ,
Non-Compete Agreements ,
Non-Disclosure Agreement ,
Restrictive Covenants ,
State and Local Government ,
State Labor Laws ,
Trademarks
On July 11, 2019, Governor Sununu signed S.B. 197 into law. S.B. 197 prohibits an employer from requiring an employee who makes 200% of the federal minimum wage ($14.50) to sign a non-compete agreement restricting the...more
7/17/2019
/ Confidential Information ,
Contract Terms ,
Employment Contract ,
Hiring & Firing ,
Intellectual Property Protection ,
Labor Regulations ,
Low-Wage Workers ,
New Legislation ,
Non-Compete Agreements ,
Pre-Employment Agreements ,
Restrictive Covenants ,
State and Local Government ,
State Labor Laws ,
Trade Secrets ,
Wage and Hour
While it is well-settled law that an attorney cannot be bound by an agreement restricting the right to practice law, that does not insulate attorneys from all restrictive covenants. As we have previously discussed, there are...more
Caramel Crisp LLC, the owner of Garrett Popcorn Shops (“Garrett”), the renowned Chicago-based purveyor of deliciously flavored popcorn, recently filed suit in federal court in Chicago against its former director of research...more
The Vermont Legislature kicked off 2019 with bill H.1, seeking to ban non-competes in the Green Mountain State. The new bill has been filed by Martin LaLonde, who promulgated an identical bill last January. ...more