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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
User:VasilievVV and user:Jarekt [Public domain], via Wikimedia Commons
The rest of you deadbeats are stuck with only five free weekly blog posts. Continue reading
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Asking for a friend, of course. Continue reading
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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
Evan-Amos [Public domain], from Wikimedia Commons
Have I piqued your interest? Continue reading
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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
By US Army [Public domain], via Wikimedia Commons
Especially if you overlook that non-solicitation agreement you signed with your prior employer… Continue reading
Imagine that one of your top salespeople leaves to go to work for a competitor. At least you had the foresight to have her sign a nonsolicitation agreement as a condition of employment. So, your customers are safe.
Then again… Continue reading
Your former employee, the one whom you paid an extra boat load of money to sign a non-solicitation agreement, just sent a bunch of LinkedIn invites to connect with some of your current employees.
The Employer Handbook Blog