A New London Connecticut Superior Court jury awarded an $839,423 verdict in November 2019, involving theft of trade secrets for a $70 million U.S. Navy underwater drone project. This case, LBI, Inc. v. Sparks, et al., KNL-cv12-6018984-S, is a classic example of the blatant theft of an employer’s confidential and proprietary information that is so easily traceable to electronic files – and the costly consequences for the defendant employer’s complicity in that trade secret misappropriation.…

Trade Secrets & Employee Mobility

Non-Compete Laws: Connecticut – Practice Note Update

By David Poppick & Carol J. Faherty

December 12, 2019

Thomson Reuters Practical Law has released the 2019 update to “Non-Compete Laws: Connecticut,” a Practice Note co-authored with David S. Poppick and Carol J. Faherty. See below to download it in PDF format—following is an excerpt: OVERVIEW OF STATE NON-COMPETE LAW 1. If non-competes in your jurisdiction are governed by statute(s) or regulation(s), identify the state statute(s) or regulation(s) governing: Non-competes in employment generally. Non-competes in employment in specific industries or professions. GENERAL STATUTE AND REGULATION Connecticut…

Trade Secrets & Employee Mobility

Enforcing Non-Solicitation Agreements Against Financial Professionals: A Court Finds Financial Professionals Have a Duty to Notify Clients About a Change of Employment

By Janene Marasciullo

November 21, 2019

A recent decision in Edward D. Jones & Co., LP v. John Kerr (S.D.In. 19-cv-03810 Nov. 14, 2019), illustrates the unique challenges that broker-dealers may face when enforcing post-employment covenants that prohibit former registered representatives (“RRs”) from soliciting clients. Edward Jones sued Kerr, a former RR, to enforce an employment contract that required him to return confidential information upon termination and prohibited him from “directly or indirectly” soliciting any Edward Jones’ client for a period…

Trade Secrets & Employee Mobility

Enforcing Non-Solicitation Agreements Against Financial Professionals: A Court Finds Financial Professionals Have a Duty to Notify Clients About a Change of Employment

By Janene Marasciullo

November 21, 2019

Trade Secrets & Employee Mobility

Preparing for Non-Compete Litigation – Practice Note Update

By Peter A. Steinmeyer

November 14, 2019

Thomson Reuters Practical Law has released the 2019 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 non-compete agreement (also referred to as a non-competition agreement or non-compete). It is critical to confirm that…

Trade Secrets & Employee Mobility

Rhode Island the Seventh State to Pass a Statute Governing Non-Compete Agreements During 2019

By Brian E. Spang

October 28, 2019

Rhode Island is the latest state to jump on the bandwagon of limiting the application of non-compete agreements, with its Rhode Island Noncompetition Agreement Act (the “Act”). See these links for our prior posts explaining the previous six non-compete statues enacted in 2019: Maine; Maryland; New Hampshire; Oregon; Utah; and Washington. Rhode Island’s Act becomes effective on January 15, 2020. Ban on Non-Competes For “Low-Wage Earners”; “Nonexempt” Employees; Minors;…

Trade Secrets & Employee Mobility

Florida Law Limits Physician Restrictive Covenants in Rural Counties

By Daniel J. Green

October 25, 2019

A recently passed Florida law, Florida Statutes 542.336 seeks to prevent medical providers from using restrictive covenants to monopolize medical specialties in rural counties. The law bars the enforcement of “restrictive covenants” against physicians who practice “a medical specialty in a county wherein one entity employs or contracts with, either directly or through related or affiliated entities, all physicians who practice such specialty in that county.” Once a second provider enters the market for a…

Trade Secrets & Employee Mobility

Belief That Information Is a Trade Secret, Even If It Isn’t, Is Enough to Be Convicted for Attempted Theft of Trade Secrets

By Peter A. Steinmeyer

October 11, 2019

A federal judge in Chicago recently held that an individual can be convicted of attempting to steal a trade secret, even if the information at issue did not actually constitute a trade secret, so long as the individual believed that the information was a trade secret. In United States of America v. Robert O’Rourke Opinion, Judge Andrea R. Wood denied a post-conviction motion for a new trial in a case involving attempted and actual…

Trade Secrets & Employee Mobility

Trade Secrets Litigation: 2019 Practice Note Update

By Peter A. Steinmeyer

October 7, 2019

I’m pleased to present the 2019 update to our “Trade Secrets Litigation” Practice Note, published by Thomson Reuters Practical Law. My co-author Zachary Jackson and I discuss litigation for employers whose employees have misappropriated trade secrets. See below to download it in PDF format—following is an excerpt: Trade secrets are often an employer’s most valuable assets. When an employee or former employee misappropriates an employer’s trade secrets, the employer frequently initiates litigation with several goals…

Trade Secrets & Employee Mobility

The Faithless Servant Doctrine: Can an Employer Claw Back Compensation from an Employee Who Binge-Watches “Friends” During Work Hours?

By Frances L. Kenajian

September 3, 2019

New York is known for having many protections for its employees in the workplace, but a long-standing legal doctrine can furnish a remedy to employers with regard to employees who engage in repeated acts of disloyalty during their employment. The “faithless servant doctrine” permits an employer to “claw back” an employee’s compensation when an employee is found to be disloyal to the employer. While the doctrine may seem antiquated, it continues to have vitality. For…

Trade Secrets & Employee Mobility

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

Blog Authors

New London Connecticut Superior Court Jury Awards $839,423 Verdict for Theft of U.S. Navy Underwater Drone Project Trade Secrets

Non-Compete Laws: Connecticut – Practice Note Update

Enforcing Non-Solicitation Agreements Against Financial Professionals: A Court Finds Financial Professionals Have a Duty to Notify Clients About a Change of Employment

Enforcing Non-Solicitation Agreements Against Financial Professionals: A Court Finds Financial Professionals Have a Duty to Notify Clients About a Change of Employment

Preparing for Non-Compete Litigation – Practice Note Update

Rhode Island the Seventh State to Pass a Statute Governing Non-Compete Agreements During 2019

Florida Law Limits Physician Restrictive Covenants in Rural Counties

Belief That Information Is a Trade Secret, Even If It Isn’t, Is Enough to Be Convicted for Attempted Theft of Trade Secrets

Trade Secrets Litigation: 2019 Practice Note Update

The Faithless Servant Doctrine: Can an Employer Claw Back Compensation from an Employee Who Binge-Watches “Friends” During Work Hours?

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