A recent decision from an Illinois Appellate Court suggests that employers with non-compete agreements “built to scare” may end up with an unenforceable contact and even the loss of confidential information under Illinois law. AssuredPartners, Inc. v. Schmitt (October 27, 2015 1st Dist.) Illinois Courts continue to carefully scrutinize contracts containing post-employment restrictions over
Recent Cases Recognize Limits to Employees’ Attempts at Self-Help to Support Retaliation Claims
Two recent cases from opposite coasts confirm that employees do not have an unfettered right to steal their employer’s documents notwithstanding the documents’ potential relevance to a whistleblower retaliation claim.
In West Hills Research and Development Inc. v. Wyles, Cal. Ct. App. 2d Dist. Case No. B255768 (July 17, 2015), when West Hills terminated
Nike Lawsuit Against Former Designers Will Test Company Security Initiative
Athletic shoe manufacturer Nike filed suit on December 8, 2014 in Multnomah County Circuit Court in Oregon against three of its former designers alleging that the designers misappropriated Nike’s trade secrets and conspired with Adidas to start a new, competing business venture.
The three former designers, Denis Dekovic, Marc Dolce and Mark Miner, all resigned
Half-Billion Dollar Arbitration Award in Trade Secrets Case Affirmed by Minnesota Supreme Court in Trade Secrets Dispute
The Minnesota Supreme Court has affirmed an arbitrator’s eye-popping award of $525 million plus prejudgment interest totaling $96 million and post-award interest in a trade secrets dust up between Seagate Technology, LLC and Western Digital Corporation, et al. Seagate Technology, LLC v. Western Digital Corporation, et al and Sining Mao, No. A12-1994 (Minn. October
NLRB Holds Employee Termination Pursuant to an Unlawful Confidentiality Policy is Lawful
Jackson Lewis has posted an analysis of the National Labor Relations Board’s latest decision in Flex Frac Logistics, LLC, 360 NLRB No. 120 (2014). In this decision, the Board determined that it was lawful to discharge an employee for violating a confidentialty policy which the Board separately found was unlawfully overbroad under Section 7
Fifth Circuit Ruling Serves as Reminder that Confidentiality Agreements Should be Drafted so as to not Tread on NLRA Section 7 Rights
The Fifth Circuit Court of Appeals has affirmed a finding of the National Labor Relations Board (“NLRB”) that a confidentiality clause that defines “confidential information” to include “financial information, including costs, prices . . . [and] personnel information” among other items was overly broad and restricted the rights of non-managerial employees to engage in concerned
Confidentiality, Non-Compete Agreements Held Unenforceable against Former Employee, Arizona Court Holds
Robert K. Jones and Stephen B. Coleman from our Phoenix office have written on the Jackson Lewis website about a significant new court of appeals decision in Arizona striking down restrictive coveants in an employment agreement as overbroad. The article can be viewed here: Confidentiality, Non-Compete Agreements Held Unenforceable against Former Employee, Arizona Court Holds
Bill in New Jersey Legislature Would Invalidate Restrictive Covenants
An article recently posted on the Jackson Lewis website describes a bill introduced in the New Jersey State Assembly that would invalidate non-compete, non-disclosure, and non-solicitation agreements for former employees who are eligible for unemployment benefits. A similar proposal is under consideration in Maryland. We will continue to monitor this topic.
Protecting Trade Secrets with a Mobile Workforce and Telecommuters
Regardless of where one stands philosophically on the merits of working from a physical office where greater collegiality can be fostered, versus working from home where personal efficiency and convenience can be maximized, the fact is that most companies have some employees who work from home, and nearly all companies have employees who work remotely
Videotaping of Machine Permitted Over Trade Secrets Objection
A federal court in the Northern District of Mississippi has allowed a plaintiff in an employment law dispute to conduct an on-site inspection for purposes of videotaping the machine which he formerly operated in Morton v. Cooper Tire & Rubber Co., (N.D. Miss. Dec. 10, 2012). Morton, an amputee with a prosthetic leg, asserted that