News & Analysis as of September 24, 2024

Confidential Information

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Non-Compete Agreements are contracts, typically formed in employment or business purchase contexts, where one party agrees to refrain from engaging in a particular line of work or pursuing business within a certain industry or locale. The purpose of these agreements is to protect employers or business purchasers from competition stemming from former employees or former owners of a business. less -

Texas Federal Judge Strikes Down FTC Non-Compete Ban

Quarles & Brady LLP on 8/23/2024

Judge Ada Brown of the U.S. District Court for the Northern District of Texas on Tuesday struck down the Federal Trade Commission’s (FTC) pending ban on non-compete covenants, concluding that the issuance of the FTC’s Rule...more

Employment Litigation Roundup: November 2023

Seward & Kissel LLP on 12/4/2023

Ex-employee’s golf outing with customer does not violate non-solicit - An auto parts manufacturer in Michigan sought a preliminary injunction against a former sales employee for violating his restrictive covenants,...more

Preliminary Injunction, Meet Irreparable Harm

McDermott Will & Emery on 4/13/2023

The US Court of Appeals for the Fifth Circuit, in a case where an ex-employer sought preliminary injunctive relief based on an alleged breach of non-disclosure and non-compete agreements and alleged misappropriation of...more

Practice What You Preach: Trade Secret Rules (Of Course) Apply to Lawyers

Sheppard Mullin Richter & Hampton LLP on 5/5/2021

When trade secret lawyers advise executives transitioning to a job with a competitor, they typically tell them to “take nothing with you” on the way out – meaning that no confidential, proprietary or trade secret information...more

“It’s a Free Country, Right?” Court Declines to Enjoin Ex-Free Country Ltd. Employees From Contacting Customers on Purloined...

Orrick - Trade Secrets Group on 1/20/2017

Within days of each other, your clothing company?Free Country Ltd.?loses two employees who decamp to a rival to set up a competing apparel line. You discover that just before leaving, they transferred some 50,000 documents...more

Federal Precedents Under the DTSA Have Arrived

Seyfarth Shaw LLP on 8/2/2016

While the Defend Trade Secrets Act of 2016 (“DTSA”) has only been in effect for a few months, the first wave of cases raising DTSA claims have started to generate federal decisions. In what appears to be the first substantive...more

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

Ogletree, Deakins, Nash, Smoak & Stewart,... on 4/25/2016

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

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

Seyfarth Shaw LLP on 4/8/2016

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

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

Pullman & Comley - Labor, Employment and... on 7/7/2015

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

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