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Category Archives: Covenants Not to Compete in Other Jurisdictions

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Two Things You Can Do To Reduce the Likelihood That Your Company Will Be Found Liable For Conspiring Or Aiding And Abetting In An Employee’s Breach of Duty To A Former Employer

Posted in Breach of Fiduciary Duty/Duty of Loyalty, Covenants Not to Compete in California, Covenants Not to Compete in Other Jurisdictions, Employee Raids, Hiring a Competitor’s Employees, Other Restrictive Covenants, Protecting Trade Secrets and Other Business Information, Unfair Competition

When companies sue their former employees for theft they often claim that the former employee’s new employer has conspired with the former employee to misappropriate trade secrets, or that that new employer has aided and abetted the former employee’s breach of duty he/she owed to his/her former employer. Like Woodward and Bernstein, liability “follows the… Continue Reading

Senate and House of Representatives Pass the Defend Trade Secrets Act

Posted in Covenants Not to Compete in California, Covenants Not to Compete in Other Jurisdictions, Employee Raids, Hiring a Competitor’s Employees, New Legislation, Other Restrictive Covenants, Protecting Trade Secrets and Other Business Information, Unfair Competition

Senate and House of Representatives Pass the Defend Trade Secrets Act (DTSA).  First federal trade secret bill awaiting presidential signature.  More details can be found at the following Forbes article:  “The New Defend Trade Secrets Act is the Biggest IP Development in Years,” dated April 28, 2016.

Are “No Rehire” Provisions in Settlement Agreements at Risk?

Posted in Breach of Fiduciary Duty/Duty of Loyalty, Covenants Not to Compete in California, Covenants Not to Compete in Other Jurisdictions, Hiring a Competitor’s Employees, Protecting Trade Secrets and Other Business Information, Unfair Competition

The use of “No Rehire” Provisions in settlement agreements between employers and their former employees allow employers to protect themselves against “boomerang” lawsuits.  For instance, a former employee who claims he/she was terminated because of discrimination would be prevented from later submitting a new job application and then suing the employer again claiming he/she was… Continue Reading

A Noncompete To Go With Your Sandwich?

Posted in Covenants Not to Compete in California, Covenants Not to Compete in Other Jurisdictions, Protecting Trade Secrets and Other Business Information

A few months ago, this blog noted that there was press coverage about the nationwide increase in the use of noncompete agreements in various industries.  A story that has made the rounds in the past week illustrates this point clearly.  Jimmy Johns, a “gourmet sandwich” franchise, has apparently been inserting noncompete provisions in its employment… Continue Reading

New York Times Article: Noncompete Clauses Increasingly Pop Up in Array of Jobs

Posted in Covenants Not to Compete in California, Covenants Not to Compete in Other Jurisdictions

What do yoga instructors, event planners and exterminators have in common?  These are fields that are reportedly witnessing an increase in the use of noncompete provisions in employment agreements.  Details of this increase in the use of noncompete provisions were reported in a New York Times article this Sunday.  Click here to view article. While… Continue Reading

Non-Competes and the “Trade Secret Exception” Revisited

Posted in Covenants Not to Compete in California, Covenants Not to Compete in Other Jurisdictions, Hiring a Competitor’s Employees, Unfair Competition

We periodically discuss California law regarding non-compete provisions in this Blog. The California Supreme Court has made clear that non-compete provisions are unenforceable unless they fall within one of the statutory exceptions set out in sections 16601 et seq. (i.e., in connection with the sale of a business, goodwill, etc.).  Over the years, courts have… Continue Reading

CUTSA Preemption: Plead Alternatives; Have Alternatives

Posted in Covenants Not to Compete in Other Jurisdictions, Protecting Trade Secrets and Other Business Information

I can say “CUTSA preemption” and see eyes begin to immediately glaze over. Even those who follow trade secrets closely sometimes have to stifle a yawn when it comes to CUTSA preemption. Boring or not, CUTSA preemption should be understood by those who seek to protect their trade secrets.  Both federal and state courts have… Continue Reading

Uncertain Future: Are Agreements Not to Solicit Employees Still Enforceable?

Posted in Covenants Not to Compete in Other Jurisdictions, Hiring a Competitor’s Employees

California courts have long held that agreements that prohibit a former employee from hiring a former co-worker are void.  These decisions are based on California’s fundamental public policy (which is codified in Business & Professions Code section 16600) protecting workers’ rights to pursue any lawful trade or profession.  With only a few narrow exceptions, California… Continue Reading