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Trade Secrets & Employee Mobility

Mayor Bowser Signs Non-Compete Ban, Congressional Review Underway

By Garen E. Dodge, Nathaniel M. Glasser, Brian W. Steinbach, Maxine Adams & Eric Emanuelson

January 15, 2021

The District of Columbia is bracing for a transition. But while employers across the country wait to see what changes the Biden Administration may bring, Washington, D.C. employers should prepare for a drastic and imminent change in their own backyard. As we previously reported, last month the District of Columbia Council passed the Ban on Non-Compete Agreements Amendment Act of 2020 (D.C. Act 23-563) (the “Act”). On January 11, 2021, Mayor Bowser…

Trade Secrets & Employee Mobility

Less Than a Month After DOJ Brings Its First Wage-Fixing Indictment, DOJ Brings Its First “No-Poach” Indictment

By Janene Marasciullo & David J. Clark

January 15, 2021

In the past month, the U.S. Department of Justice (DOJ) has made good on its 2016 threat, contained in its Antitrust Guidance for Human Resource Professionals (“Antitrust Guidance”) to bring criminal charges against people or corporations who enter into naked wage-fixing agreements or naked no-poach agreements. First, as reported here, on December 9, 2020, DOJ obtained an indictment against the president of a staffing company who allegedly violated Section 1 of the Sherman Act…

Trade Secrets & Employee Mobility

Trade Secrets Law 25 Years After PepsiCo Disclosure Case – Law360 Article

By Epstein Becker & Green, P.C.

January 12, 2021

Our colleagues Peter Steinmeyer and Brian Spang have co-authored an article in Law360, titled “Trade Secrets Law 25 Years After PepsiCo Disclosure Case.” (Read the full version – subscription required.) Following is an excerpt: Twenty-five years ago, the U.S. Court of Appeals for the Seventh Circuit issued what many at the time perceived as a landmark decision, PepsiCo Inc. v. Redmond, in which the court applied the concept of inevitable disclosure of trade secrets to affirm an injunction prohibiting…

Trade Secrets & Employee Mobility

Connecticut Non-Compete Laws: 2021 Update

By David Poppick & Carol J. Faherty

January 11, 2021

We’re pleased to share the 2021 update of “Non-Compete Laws: Connecticut,” a Q&A guide published by Thomson Reuters Practical Law. Following is an excerpt (see below to download the full version in PDF format): This Q&A addresses enforcement and drafting considerations for restrictive covenants such as post-employment covenants not to compete and non-solicitation of customers and employees. Federal, local, or municipal law may impose additional or different requirements. … In particular, this Q&A addresses: Overview…

Trade Secrets & Employee Mobility

Preparing for Non-Compete Litigation: 2021 Update

By Peter A. Steinmeyer

January 6, 2021

Thomson Reuters Practical Law has released the 2021 update to “Preparing for Non-Compete Litigation,” a Practice Note I co-authored with Zachary Jackson. See below to download the full Note – following is an excerpt: Non-compete litigation is typically fast-paced and expensive. An employer must act quickly when it suspects that an employee or former employee is violating a noncompete agreement (also referred to as a non-competition agreement or non-compete). It is critical to confirm that…

Trade Secrets & Employee Mobility

With Wage-Fixing Indictment, Department of Justice Initiates Long-Promised Criminal Proceedings

By David J. Clark

December 29, 2020

Earlier this month, the U.S. Department of Justice (“DOJ”) announced that a federal grand jury in Texas indicted Neeraj Jindal, the former owner of a physical therapist staffing company, in connection with an illegal wage-fixing conspiracy to depress pay rates for physical therapists (“PTs”) and physical therapist assistants (“PTAs”) who travel to patients’ homes or assisted living facilities in the greater Dallas-Fort Worth area. The indictment was something of a landmark for the U.S. Department…

Trade Secrets & Employee Mobility

Washington, D.C., Poised to Ban Most Non-Compete Agreements

By Garen E. Dodge, Nathaniel M. Glasser, Brian W. Steinbach, Maxine Adams & Eric Emanuelson

December 22, 2020

Non-compete agreements may all but disappear from the Washington, D.C. employment landscape in 2021. On December 15, 2020, the District of Columbia Council voted 12-0 to approve the Ban on Non-Compete Agreements Amendment Act of 2020 (B23-0494) (the “Bill”), which would prohibit the use and enforcement of non-compete agreements for all employees except certain highly paid physicians. If enacted into law, Washington, D.C. will have adopted a much stricter policy than several other states that…

Trade Secrets & Employee Mobility

What’s “So” Important: Computer Fraud and Abuse Act Gets a Close Look from SCOTUS

By Aime Dempsey

December 4, 2020

In a case with significant ramifications for employers concerned with protecting sensitive information, and for employees accused of abusing access to computer networks, the United States Supreme Court (“SCOTUS”) heard oral argument this week in Van Buren v. United States, No. 19-783, a case from the Court of Appeals for the Eleventh Circuit that will require interpretation of the Computer Fraud and Abuse Act (“CFAA”), 18 U.S.C. § 1030. The argument was lively. All…

Trade Secrets & Employee Mobility

Non-Compete Boilerplate Loses Steam Where Independent Contractor Receives Call and Confidences Directly

By James P. Flynn

November 30, 2020

The Court of Appeals for the Sixth Appellate District of Texas at Texarkana issued an opinion on November 24, 2020 in Titan Oil & Gas Consultants LLC v. David W. Willis and RIGUP, Inc., a case addressing application of a non-competition provision in the independent contractor context in the oil and gas drilling and production industry in the Permian Basin and elsewhere. Titan addressed non-competition claims of interest both to those focused on the…

Trade Secrets & Employee Mobility

Garden Leave Provisions in Employment Agreements: 2020 Update

By Peter A. Steinmeyer & Lauri F. Rasnick

November 2, 2020

The 2020 update to our Practice Note, “Garden Leave Provisions in Employment Agreements,” is now available from Thomson Reuters Practical Law. We discuss garden leave provisions in employment agreements as an alternative or a companion to traditional employee non-compete agreements. Following is an excerpt (see below to download the full article in PDF format): In recent years, traditional non-compete agreements have faced increasing judicial scrutiny, with courts focusing on issues such as the adequacy of consideration,…

Trade Secrets & Employee Mobility

News, Updates, and Commentary on Trade Secret and Employee Mobility Developments

Blog Authors

Mayor Bowser Signs Non-Compete Ban, Congressional Review Underway

Less Than a Month After DOJ Brings Its First Wage-Fixing Indictment, DOJ Brings Its First “No-Poach” Indictment

Trade Secrets Law 25 Years After PepsiCo Disclosure Case – Law360 Article

Connecticut Non-Compete Laws: 2021 Update

Preparing for Non-Compete Litigation: 2021 Update

With Wage-Fixing Indictment, Department of Justice Initiates Long-Promised Criminal Proceedings

Washington, D.C., Poised to Ban Most Non-Compete Agreements

What’s “So” Important: Computer Fraud and Abuse Act Gets a Close Look from SCOTUS

Non-Compete Boilerplate Loses Steam Where Independent Contractor Receives Call and Confidences Directly

Garden Leave Provisions in Employment Agreements: 2020 Update

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