Articles Posted in Trade Secrets and Restrictive Covenants

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On Thursday, the Federal Trade Commission proposed a new rule prohibiting employers from imposing noncompetes on their workers. I wrote about it on Friday and spent the weekend reading all 216 pages of the official “Non-Compete Clause Rule Notice of Proposed Rulemaking.” So, let’s discuss it on Zoom today.

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I love to litigate employment disputes. And restrictive covenant cases are at or near the top of my list. They are fast-paced, usually well-lawyered on both sides, and lucrative. The primary goal of the dispute is to obtain a preliminary injunction — quickly — to stop someone from working. That means obtaining, organizing, and presenting an entire lawsuit worth of evidence in just months or weeks. Continue reading

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I’ve litigated many battles between companies over trade secrets and non-competition and non-solicitation agreements. The tie that binds them all is that these cases are expensive to prosecute and defend. Continue reading

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For one of the most employee-friendly states in the country, the current state of play in New Jersey for restrictive covenant agreements like non-competes and non-solicits is employer-friendly. Although your mileage may vary by judge, most will enforce reasonable contracts of up to two years with a geographical footprint that coincides with where the company does business. Continued employment is sufficient consideration, and if the agreement is too broad, the judge can reform it.

Those days may be ending soon. Continue reading

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A little over five years ago, TikTok, the social networking platform where users post videos ranging in length from 15 seconds to three minutes, was born. Now, I know that it’s hard to keep up with technology. But if your employee handbook doesn’t specifically reference TikTok — and I’m not just talking about your social media policy — then you, or your employees, or perhaps both, are looking for trouble.

Just ask a former flight attendant for a major airline. Continue reading

I warned — didn’t I? — you that President Biden was preparing to tell the Federal Trade Commission to either ban or curtail private employers from using non-competition agreements. Continue reading

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