The Employer Handbook

Articles Posted in Trade Secrets and Restrictive Covenants

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In 2016, President Obama signed the Defend Trade Secrets Act into law. A bipartisan approach to creating a nationwide enforcement mechanism, the DTSA prohibits misappropriation of trade secrets in all 50 states.

Fast forward to 2019, and the federal government is back at it again with another bipartisan bill — this time, legislation taking on non-competition agreements. Continue reading

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Blue pencil

User:VasilievVV and user:Jarekt [Public domain], via Wikimedia Commons

One of the benefits of being a client of this handsome employment lawyer/blogger is a weekly email with links to recent HR news and notes, as well as a bonus HR-compliance tip.

The rest of you deadbeats are stuck with only five free weekly blog posts. Continue reading

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Image Credit: Pixabay.com (https://pixabay.com/vectors/resume-unemployed-job-unemployment-2163673/)

In most states, non-competition agreements between an employer and employee are legal, as long as there is some form of consideration (like money) to support them.

But, what about a no-hire or no-poach agreement; e.g., a ‘contract’ between two businesses where one (or both) agrees not to hire the others’ employees during their business relationship and for some time after it ends?

That must be legal too, right?

Probably not. Continue reading

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Handcuffs-Black

Evan-Amos [Public domain], from Wikimedia Commons

Senator Marco Rubio (FL-R) has introduced legislation that, if it becomes law, would be a flamethrower to many of the non-competition agreements that you have with your employees.

Have I piqued your interest? Continue reading

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Image Credit: Pixabay.com (https://pixabay.com/en/stamp-characters-label-informant-143799/)

Until a few years ago, if an employer wanted to pursue a claim for misappropriation of trade secrets, it probably had to do so in state court under state law. The Defend Trade Secrets Act of 2016 changed all that. The DTSA is a federal law that created a private federal civil cause of action for trade secret misappropriation. So, now, if an employee takes your precious trade secrets, you can sue under federal law in federal court. And, in certain circumstances, you can collect your attorney’s fees if you prevail. The DTSA has real teeth!

But, what if you learn that an employee misappropriated your trade secrets before the DTSA took effect on May 11, 2016. Are you stuck in state court? Continue reading

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ContractLaw

By US Army [Public domain], via Wikimedia Commons

Late last week, U.S. Senators Elizabeth Warren (D-Mass.), Chris Murphy (D-Conn.), and Ron Wyden (D-Ore.) introduced legislation to ban employers and employees from entering into non-competition agreements. Continue reading

“Doing What’s Right – Not Just What’s Legal”