In the fourth quarter of 2017, two major financial firms dropped out of an industry-wide Protocol for Broker Recruiting (the “Protocol”), an agreement designed to reduce litigation surrounding the movement of stockbrokers between competing firms. While those departures do not necessarily seal the fate of the Protocol, they do portend an increase in litigation to
Federal Court Interprets Florida and Pennsylvania Law To Endorse Protection Of Salon Services Company’s Customer Relationships And Specialized Information
In states that permit the enforcement of non-compete and other restrictive covenant agreements against former employees, companies must still demonstrate that the restrictions are designed to protect a legitimate business interest, and not to simply avoid ordinary competition. In Osborne Assocs. v. Cangemi, Case No. 3:17-cv-1135-J-34MCR (M.D.Fla. Nov. 14, 2017), the federal court for the
Texas Court Reminds: Lost Sales Are Not Lost Profits
Proof of damages in restrictive covenant matters can be complicated. In Rhymes v. Filter Resources, Inc., the Ninth Court of Appeals in Beaumont, Texas reminded parties that revenue and sales are not the same as lost profits, and expenses must be considered when developing a damage model.
George Rhymes (“Rhymes”) was employed by Filter Resources
SEC Fines Company $265,000 for Severance Agreements that Potentially Chilled Whistleblowers
Our Corporate Governance Practice Group posted this article regarding further activity by the Securities and Exchange Commission in response to confidentiality provisions it found might deter potential corporate whistleblowers under the Dodd-Frank Act.
Employers should be reminded to carefully draft non-disclosure of confidential information provisions clearly not to prohibit employees from reporting violations of law
Down to the Wire for Proposed Non-Compete Reform Legislation in Massachusetts
Erik J Winton, Sarah B. Herlihy, and Shawn N. Butte have written an article regarding current efforts to reform Massachusetts non-compete law. The article, entitled Down to the Wire for Proposed Non-Compete Reform Legislation in Massachusetts and published on Jackson Lewis’ website, can be found here
Nevada Confirms Its Restrictive Covenant Law, But Rejects Blue Penciling
Elayna J. Youchach, Paul T. Trimmer, Deverie J. Christensen, and Lisa A. McClain of Jackson Lewis’ Las Vegas office have written an article on the first decision to reach the Nevada Supreme Court regarding whether state district courts may modify or “blue pencil” non-competition agreements. Read the article here
Colorado Broadens Whistleblower Protection for State Employees Who Disclose Confidential Information
Tim Kratz and Kristen Baylis in our Denver office have reported on an important new law in Colorado, extending whistleblower protection to state employees who disclose confidential information in the context of reporting waste, mismanagement of public funds, abuses of authority or illegal and unethical practices to a designated “whistleblower review agency.” To review the
President Obama Signs Defend Trade Secrets Act of 2016
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.
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
9th Circuit: Claims proceed in California despite French forum selection clause
A federal appeals court has held a forum selection clause in a non-disclosure agreement does not cover trade secret misappropriation and related claims that are not based on the agreement. In re Orange, S.A. v. United States District Court, 2016 U.S. Ap. LEXIS 648 (9th Cir. 2016). Telesocial is a San Francisco start-up, formed