New Jersey may be next up to join the growing number of states that significantly restrict the use of non-competition agreements in employment.  As we discussed back in December 2017, a bill proposed in New Jersey at the time, Senate Bill 3518, would “impose significant restrictions and limitations” on the use of restrictive covenants in the employment context.   Ultimately, SB 3518 died in committee, but a revival is underway. On February 24, 2021, a …

(This is part of the Restrictive Covenant Report “Employers’ Toolbox Series,” where we examine lesser-utilized methods of protecting confidential information, trade secrets, and other business interests.) The Defend Trade Secrets Act (“DTSA”), 18 U.S.C. § 1836, et seq., is approaching its fifth anniversary after being signed into law by President Barack Obama on May 11, 2016.  To celebrate, we are highlighting some of the issues that have developed in five years of litigating the law’s most…

The District of Columbia appears poised to join the growing number of nearby states regulating and limiting restrictive covenant agreements in the employment context. Unanimously passed by the D.C. City Council on December 15, 2020 and signed by Mayor Muriel Bowser on January 11, 2021, the “The Ban on Non-Compete Agreements Amendment Act of 2020” goes further than recent laws enacted across the country.  It is a ban on virtually all non-compete agreements.…

In the midst of the COVID-19 pandemic, Indiana has enacted a new law governing non-compete agreements used with physicians. Our Practice Group members in Indianapolis authored an article detailing the new law’s requirements.  As the article notes, the new law raises multiple unanswered questions. And, while not as sweeping as other statutes, Indiana now joins the parade of states enacting new laws limiting the use of non-compete agreements.  We will continue to monitor all state…

It’s not often that a case in our practice area reaches the Supreme Court of the United States, so we are genuinely excited! In Van Buren v. United States, No. 19-783, the U.S. Supreme Court will have a chance to resolve (finally) the circuit split regarding the scope of the Computer Fraud and Abuse Act.  Some circuits (the 2nd, 4th and 9th) take a narrow view of the CFAA, allowing claims against employees who…

Is anyone focusing on anything other than the COVID-19 Pandemic?  Apparently, the Virginia legislature and governor are undeterred, enacting a series of new laws.  Among them, Virginia has banned non-compete agreements for lower wage earners, becoming the most recent state to do so.  A summary of the key provisions is included in this article written by our Virginia colleagues Matt Nieman and Jason Ross: https://www.jacksonlewis.com/publication/virginia-enacts-wage-theft-non-compete-laws-amidst-flurry-new-employee-protections   …

Texas courts are increasingly encountering efforts to challenge restrictive covenant agreements on free speech grounds, where the restricted activity includes business-related communications. A recent Texas appellate court decision indicates that this strategy has its limits. In Hieber v. Percheron Holdings, LLC, No. 14-19-00505-CV (Tex. App.—Houston [14th Dist.] Nov. 14, 2019), Percheron Holdings, LLC (“Percheron”) sued Hieber, a former sales executive, for violation of a non-compete and non-solicitation agreement, based on Hieber’s employment with a…