The federal Defend Trade Secrets Act of 2016 was signed into law on May 11, 2016 by President Obama. A review of the law and its impact on employers can be found here.
Jackson Lewis P.C.
New Connecticut Statute Restricting Physician Non-Compete Agreements
Edward M. Richters has written on the Jackson Lewis website about a new Connecticut law, Senate Bill 351 (as amended), which establishes significant new restrictions on physician non-compete agreements in Connecticut. http://www.jacksonlewis.com/publication/new-connecticut-statute-restricts-physician-non-compete-agreements
Defend Trade Secrets Act Set to Become Law
For the first time, there will be a federal private right of action for misappropriation of trade secrets. The Defend Trade Secrets Act (“DTSA”), passed by both houses of Congress, is headed to President Barack Obama for his signature and his office has stated it “strongly supports” the legislation. The DTSA will become effective upon…
Defend Trade Secrets Act Advances: Getting Closer to Law?
Defying claims that bi-partisanship in Congress is dead, the United States Senate has passed the Defend Trade Secrets Act by a vote of 87-0. The measure, approved by the upper chamber on April 4, goes to the House of Representatives, which is considering a very similar bill with sponsorship from both sides of the aisle.
Florida Federal Court Raises the Bar on Irreparable Injury
Businesses seeking injunctive relief to enforce non-competition agreements in Florida might be required to show the confidential information they seek to protect is neither unnecessary nor outdated, according to a recent ruling in Transunion Risk and Alternative Data Solutions, Inc. v. Challa, 2016 U.S. Dist. LEXIS 166346, Case No. 9:15-cv-91049 (S.D. Fla. March 23,…
Consideration for Non-Competes in Illinois: You’re Better Off in Federal Court
The saga of “What consideration is adequate?” in Illinois continues. What has become clear is that federal courts are more forgiving than Illinois state courts on this issue.
On March 10, 2016, Judge Gettleman of the federal court in Chicago issued a ruling on this issue in R.J. O’Brien & Associates, LLC v. Williamson,…
Use Of Personal Cloud-Based Document Accounts Requires New Strategies By Employers
Whether Google Docs, Dropbox, or some other file sharing system, employees, especially millennials and other digital natives, are increasingly likely to set up personal cloud-based document sharing and storage accounts for work purposes, usually with well-meaning intentions, such as convenience and flexibility. Sometimes this is done with explicit company approval, sometimes it is done with…
Congress Tries Again – The Defend Trade Secrets Act
Jackson Lewis attorneys Peter R. Bulmer, A. Robert Fischer, Michael S. Kantor, and David E. Renner have prepared a detailed update on the firm’s website on the status of a bill in Congress which would create a federal trade secrets law, known as the Defend Trade Secrets Act. Stay tuned for further developments!
Florida Appellate Court Rules Former Customers Are Not a Legitimate Business Interests
A recent case from Florida’s Fifth District Court of Appeals underlines the importance for employers to provide a sufficient legitimate business interest to justify enforcement of a non-compete agreement. Where a former employee or contractor is interfering with client relationships, the employer must be careful to point out specific prospective or existing clients when enforcing…
Eighth Circuit Finds Non-Compete May be Assignable Under Arkansas Law; Reverses Dismissal of Breach of Fiduciary Duty and Conspiracy Claims Where Manager took Subordinates with him.
The Eight Circuit has concluded that the Arkansas Supreme Court would likely adopt the majority rule that a covenant not to compete can be assigned to the purchaser of a business. Stuart C. Irby Company, Inc. v. Tipton, No. 14-1970 and 14-2682 (8th Cir. Aug. 6, 2015) The appellate court reversed an across-the board…