Fisher Phillips • March 08, 2020
Can a former employer’s alleged misconduct defeat a request for injunctive relief against former employees when those departing workers take confidential information and clients to another employer? A federal appeals court recently addressed this question in Scherer Design Group, LLC v. Ahead Engineering LLC and decided not to apply the “unclean hands” doctrine against the employer in a trade secrets case, clearing the way for the injunction. While not a suggested approach that you should take without consulting with your attorney, the case does present an interesting situation that all employers should familiarize themselves with.
Littler Mendelson, P.C. • February 26, 2020
Nondisclosure Agreements (NDAs) have recently come under fire within the #MeToo debate. Opponents of the NDA argue that its sole (and negative) purpose is to silence victims of sexual harassment and allow those accused to continue to harass others. NDA proponents, however, offer a different perspective. An NDA is one of many mechanisms used to defend against allegations that are in dispute. It can provide a smooth transition to resolution rather than litigation, and can benefit both the alleged victim and the employer.
Jones Walker • January 31, 2020
Employers often place limitations on their employees’ ability to compete following the termination of the employment relationship. The justification for restraints on trade is that employers have a protectable interest in their customer and vendor relationships, the goodwill associated with their brand, and their confidential information and trade secrets.
Ogletree Deakins • January 28, 2020
Severance and litigation settlement agreements often include a provision that prohibits one or more of the parties from making “disparaging” statements about the other. Such non-disparagement clauses are commonly used, but infrequently litigated. Consequently, employers negotiating these terms (as well as their counsel) may not be familiar with how they might be triggered and the practical effects of trying to enforce them. Here are a few thoughts for employers considering incorporating non-disparagement clauses in their settlement agreements.
Jackson Lewis P.C. • January 28, 2020
The use of non-competition agreements between employers and employees has raised concerns at the Federal Trade Commission (FTC). On January 9, 2020, the agency held a program “to examine whether there is a sufficient legal basis and empirical economic support to promulgate a Commission Rule that would restrict the use of non-compete clauses in employer-employee employment contracts.”
Fisher Phillips • December 27, 2019
When it comes to physician employment agreements, non-compete provisions can be controversial and tricky. The use of these agreements is nonetheless increasing and evolving as hospitals and other groups try to protect their investments in successful medical practices, especially those that they helped launch and nurture. After assuming the risks and costs of building a medical practice, they obviously do not want to see employed doctors move their practices (and patients) to a competitor.
Jackson Lewis P.C. • November 21, 2019
On November 14, 2019, the U.S. Senate Committee on Small Business and Entrepreneurship held a hearing to examine recently proposed bills that would regulate non-compete agreements at the federal level. Discussion during the hearing indicates that it may have the necessary support to move forward.
Jackson Lewis P.C. • November 18, 2019
A bipartisan bill aimed at generally banning non-compete agreements across the country has been introduced in the Senate by Senators Chris Murphy (D-Conn.) and Todd Young (R-Ind.). The Workforce Mobility Act of 2019, which closely tracks the Democrat-led Workforce Mobility Act of 2018, is a stark contrast to the limited and more measured approaches that have predominated at the state level.
Jones Walker • July 16, 2019
AT&T Services, Inc. and its subsidiary, DirectTV, LLC (collectively, “AT&T”) sued Max Retrans, LLC (“Max Retrans”), a consulting company that works with local broadcasting companies to sell their content to Pay-TV service providers for re-broadcast.
Jones Walker • May 30, 2019
The large majority of employment based trade secret claims start with an employer uncovering evidence that its employee or former employee improperly downloaded confidential business information. But a recent case in Boston illustrates that such evidence may not be necessary to bring a trade secret or unfair competition claim.