Conrad S. Kee from our Salt Lake City office and Cliff Atlas, co-chair of the firm’s non-compete practice group have written on the firm’s website about two new important laws in Utah, the Post-Employment Restrictions Act and the Computer Abuse and Data Recovery Act.
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Unintended Consequences of Arbitration Provisions
A recent unpublished decision of the United States District Court, Eastern District of Pennsylvania, highlights the importance for employers to review carefully their agreements containing restrictive covenants to ensure they do not unintentionally limit the available avenues for relief.
In Healthcare Servs. Grp., Inc. v. Fay, 2015 BL 33694 (Oct. 14, 2015), Healthcare sued…
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…
Louisiana Court of Appeals Holds Non-Compete Was Triggered When Employment Agreement Expired, Not When Actual Employment Ended
The Louisiana Court of Appeals, First Circuit, recently affirmed a lower court’s denial of a preliminary injunction to enforce a covenant not to compete in Gulf Industries, Inc. v. Boylan (La. App. 1 Cir. June 6, 2014). The case demonstrates continued careful scrutiny by Louisiana courts of non-compete agreements.
Gulf Industries provides highway safety, highway…
Either Way You Say it, It’s Unauthorized: Mass. Federal Court Declines to Dismiss CFAA Claim
On November 12, 2013, A court in the U.S. District Court for the District of Massachusetts issued a decision concerning the ongoing debate about the meaning of “exceeding authorized access” under the Computer Fraud and Abuse Act. Moca Systems, Inc. v. Bernier, No. 13-10738-LTS (D. Mass. Nov. 12, 2013). MOCA Systems, Inc. filed suit…
The Georgia Restrictive Covenants Act – Two Years Later
As previously reported in a legal alert issued by Jackson Lewis on May 12, 2011, Georgia Governor Nathan Deal signed the Georgia Restrictive Covenants Act into law almost two years ago, on May 11, 2011. Since that time, many employers have required employees to sign new covenants that comply with the law.
The Georgia Restrictive…
North Dakota Non-Compete Law Shares History with California
North Dakota has one of the fastest-growing workforces in the country as the result of recent advances in extracting natural gas and oil. As more employers seek to hire in or transfer employees to the Peace Garden State, many are surprised to discover that North Dakota law prohibits non-compete agreements. North Dakota Century Code Section…
NY Appellate Division Rejects Challenge to Forum and Choice of Law by California Defendant
In the latest chapter of an ongoing dispute between Aon Risk Services and Alliant Insurance Services (stemming from Alliant’s hiring of dozens of Aon employees and accepting millions in annual revenue from former Aon clients), on January 10, 2013, the New York State Supreme Court, Appellate Division, First Department issued a decision upholding key rulings…
Will Tolling Provisions Gain Popularity?
Tolling clauses in non-compete agreements extend the period of noncompetition by a period of time usually equal to the time an employee is in violation. Appellate courts in some states, including Illinois and Massachusetts, have affirmed injunctions based on contractual extension clauses. For example, in Prairie Eye Center v. Butler, No. 4-01-0005 (Ill. Ct.…
Trade Secrets – Is Kevlar the New Coke?
Kevlar (R), a high-strength para-aramid fiber created by E. I. du Pont de Nemours and Company and famously used in body armor for soldiers and police officers, is the subject of a recent criminal indictment by the U.S. Justice Department against Kolon Industries, Inc. and several of its executives. According to the October 18, 2012…