Louisiana’s amended non-competition statute (La. R.S. 23:921), which meaningfully expands the application of employment-related non-compete restrictions within the state, went into effect on August 1, 2020. This amendment expressly expands the reach of Louisiana non-compete law by, among other things, adding corporate shareholders, partners in partnerships, and members of limited liability companies, to the category … Continue Reading
Although non-competes are generally viewed as matters governed by state law, the issue is increasingly under the scrutiny of federal lawmakers and regulators. The FTC has been studying non-compete clauses and their impact on competition for months, and on January 9, 2020, the Commission held a workshop on the topic. Experts, law professors, labor leaders, … Continue Reading
Washington is the most recent state to adopt a law restricting the use of noncompetition agreements. The new law (HB 1450), which was signed by Governor Jay Inslee on May 8, 2019 and is scheduled to go into effect on January 1, 2020, will add unique challenges for employers and further complicate the restrictive covenant … Continue Reading
The New York State Office of the Attorney General (“NYAG”), working with the Illinois Attorney General, announced on September 18, 2018 that it had reached a settlement with WeWork Companies, Inc. (“WeWork”) regarding its use of non-compete agreements. The WeWork settlement follows earlier non-compete related settlements by the NYAG with, among others, Jimmy John’s Gourmet … Continue Reading
In this episode of The Proskauer Brief, senior counsel Harris Mufson and associate Samantha Regenbogen discuss significant reforms to Massachusetts law that will apply to non-competition agreements as well as adopting the Uniform Trade Secrets Act (UTSA). The law will cover non-compete agreements entered into with Massachusetts residents and Massachusetts employees on or after October 1, 2018 (but not … Continue Reading
On August 10, 2018, Massachusetts Governor Charlie Baker signed into law a bill making significant reforms to Massachusetts’ law regarding non-compete agreements, as well as adopting the Uniform Trade Secrets Act (“UTSA”) (joining 48 other states as well as DC in adopting the UTSA at least in part, and leaving New York as the lone … Continue Reading
On April 3, 2018, the Antitrust Division of the U.S Department of Justice (“DOJ”) announced that it had reached a settlement in a matter involving a “no-poaching” agreement between employers—the first such enforcement action under the Trump Administration. The DOJ’s pursuit of the matter reflects the Department’s continuing scrutiny of employment and hiring agreements between … Continue Reading
The use of social media sites, like LinkedIn, can be a helpful tool to reach a customer base. But a recent district court case out of Minnesota exemplifies the need to ensure that LinkedIn usage complies with the user’s employment agreement. Specifically, in late July 2017, a Minnesota court in Mobile Mini, Inc. v. Vevea granted … Continue Reading
Nevada’s Assembly Bill 276, which became effective on June 3, 2017 (the “NV Law”), articulates new rules and requirements for employee restrictive covenants, some of which fundamentally alter the State’s prior practices. The NV Law addresses consideration generally in non-competition covenants and in circumstances where employees are terminated as the result of a reduction of … Continue Reading
On February 7, 2017, the Third Circuit affirmed a partial preliminary injunction order barring two former ADP employees from soliciting customers for their new employer for one year. This decision is notable as it affirmed the propriety of electronic acknowledgements and rejected a creative challenge to ADP’s electronic signature system. See ADP, LLC v. Lynch, … Continue Reading
Effective January 1, 2017, the Illinois Freedom to Work Act (the “Act”) will prohibit private sector employers from entering into non-competition agreements with employees earning a “low wage.” The Act defines low-wage employees as those who earn the greater of: (a) the federal ($7.25 per hour), state ($8.25 per hour), or local (currently, $10.50 per … Continue Reading
Proskauer’s Labor and Employment Law Department is pleased to announce the release of its inaugural Value Insights: Delivering Value in Labor and Employment Law survey, a resource that includes input from in-house decision makers on labor and employment matters and provides in-house counsel with tools to both more effectively help their business partners achieve their objectives … Continue Reading
Today (May 11, 2016), President Obama signed the Defend Trade Secrets Act (“DTSA”) into law, for the first time creating a federal cause of action for trade secret misappropriation. The law has sweeping implications and is expected to have a noticeable impact on trade secret jurisprudence. In addition, the law adds new obligations for employers … Continue Reading
On April 11 and April 27, 2016, the Senate and House, respectively, passed the Defend Trade Secrets Act of 2016 (DTSA). The DTSA, for the first time, provides a federal cause of action for the misappropriation of trade secrets. This significant development has large implications for companies and employers nationwide. As such, Proskauer has prepared … Continue Reading
Illinois employers are still reeling from the Illinois Supreme Court’s refusal to review the decision in Fifield v. Premier Dealer Services, Inc., No. 1-12-0327 (Ill. App. Ct., 1st Dist. June 24, 2013). In Fifield, the First District Appellate Court ruled that employee non-competition and non-solicitation agreements supported by consideration consisting of less than two years … Continue Reading
On August 10, 2018, Massachusetts Governor Charlie Baker signed into law a bill making significant reforms to Massachusetts’ law regarding non-compete agreements, as well as adopting the Uniform Trade Secrets Act (“UTSA”) (joining 48 other states as well as DC in adopting the UTSA at least in part, and leaving New York as the lone … Continue Reading
On April 3, 2018, the Antitrust Division of the U.S Department of Justice (“DOJ”) announced that it had reached a settlement in a matter involving a “no-poaching” agreement between employers—the first such enforcement action under the Trump Administration. The DOJ’s pursuit of the matter reflects the Department’s continuing scrutiny of employment and hiring agreements between … Continue Reading
Proskauer’s Labor and Employment Law Department is pleased to announce the release of its inaugural Value Insights: Delivering Value in Labor and Employment Law survey, a resource that includes input from in-house decision makers on labor and employment matters and provides in-house counsel with tools to both more effectively help their business partners achieve their objectives … Continue Reading
Today (May 11, 2016), President Obama signed the Defend Trade Secrets Act (“DTSA”) into law, for the first time creating a federal cause of action for trade secret misappropriation. The law has sweeping implications and is expected to have a noticeable impact on trade secret jurisprudence. In addition, the law adds new obligations for employers … Continue Reading
On April 11 and April 27, 2016, the Senate and House, respectively, passed the Defend Trade Secrets Act of 2016 (DTSA). The DTSA, for the first time, provides a federal cause of action for the misappropriation of trade secrets. This significant development has large implications for companies and employers nationwide. As such, Proskauer has prepared … Continue Reading
