Non-Compete Enforceability

A decade ago, the Georgia legislature enacted a new restrictive covenant statute, O.C.G.A. § 13-8-51 et al. (the “Georgia RCA”). Among other things, the Georgia RCA permitted Georgia courts to blue-pencil or “modify a covenant that is otherwise void and unenforceable so long as the modification does not render the covenant more restrictive with regard to the employee than as originally drafted by the parties.” O.C.G.A. § 13-8-53(d).
Continue Reading Georgia Business Court Utilizes Georgia’s Restrictive Covenants Act to Modify the Applicable Time Period of a Customer Non-Solicit Provision

50 State Desktop Reference
What Businesses Need to Know About Non-Competes and Trade Secrets Law, 2020-2021 Edition

Seyfarth’s Trade Secrets, Computer Fraud & Non-Competes practice group is pleased to provide the 2020-2021 edition of our 50 State Desktop Reference, which surveys the most-asked questions related to restrictive covenants and trade secrets in all 50 states, including the recent updates in
Continue Reading Now Available! Seyfarth’s 50 State Non-Compete Desktop Reference

In a move aligned with California’s view of non-competes, the District of Columbia (subject to congressional oversight) will soon impose a complete ban on any employment covenant that restricts employment elsewhere at any time, even restrictions forbidding simultaneous employment somewhere else. On January 11, 2021, Mayor Muriel Bowser signed the Ban on Non-Compete Agreements Amendment Act of 2020 (the “Act”), which will soon become law unless Congress issues a joint resolution disapproving the Act within 30 days of receipt of the Act. The projected date for the Act to become law is March 19, 2021. Then, in all likelihood, the Act will go into effect in the fall of 2021 once the DC Council tees up a fiscal impact statement and funding for the Act after the next budget cycle.
Continue Reading District of Columbia’s Sweeping Ban on Non-Competes

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In the first installment of the 2021 Trade Secrets Webinar Series, Seyfarth attorneys will review noteworthy legislation, cases, and other legal developments from across the nation over the last year in the area
Continue Reading Upcoming Webinar! Trade Secrets & Non-Competes 2020 Year in Review

2020 brought with it a bevy of new challenges for companies of all sizes in every industry, not the least of which was protecting trade secrets and confidential information in the face of newly remote workforces. 2021 brings with it new hope and the promise of a return to “normalcy”—whatever that may mean in this changed world. But companies must remain vigilant about protecting their trade secrets and confidential information. As we enter the new year, here are ten resolutions that companies should make—and keep—to accomplish that important goal in 2021 and beyond.
Continue Reading Ten Trade Secret Resolutions to Keep for 2021 and Beyond

In an expansive recent ruling, the California Court of Appeal in Brown v. TGS Management Co., LLC reversed a judgment confirming an arbitration award, examining the arbitrator’s findings, and ultimately invalidating a confidentiality provisions in an employment agreement under Business and Professions Code section 16600 on the grounds that they operated as a “de facto noncompete provision” and were “void ab initio and unenforceable.” The court’s decision, upholding the state’s long-standing policy in favor of employee mobility, offered a harsh word of caution for employers that use overly broad confidentiality provisions and other restrictive covenants with their California employees.
Continue Reading California Court of Appeal Extends the Reach of Section 16600 to Upset Arbitration Award Because of Alleged Overly Broad Confidentiality Provisions

President-elect Joe Biden has issued a “Plan for Strengthening Worker Organizing, Collective Bargaining, and Unions” on his website, and it includes an interesting statement about what his incoming administration purportedly intends to do about non-compete and no-poach agreements:
Continue Reading Will Biden Ban Non-Competes?

On Tuesday, December 8 at 1 p.m. Eastern, Seyfarth partner and Trade Secrets, Computer Fraud & Non-Competes practice co-chair Robert Milligan is presenting “Negotiating Enforceable Noncompetition and Non-Solicitation Agreements: Compliance with State Statutes and Case Law,” a 90-minute CLE webinar for Strafford.

The webinar will discuss current legislative and case law trends regarding non-compete and non-solicitation agreements, offer best practices
Continue Reading Robert Milligan to Present Latest Developments in Non-Compete Webinar for Strafford

On Tuesday, October 6, 2020, Houston partner Jesse Coleman and Boston Partner Erik Weibust presented a webinar entitled “Recovering Damages for Breach of Restrictive Covenants” for Strafford. The webinar can be downloaded and viewed on demand at Strafford’s website. CLE credits are available. Below is a description of the program and an outline of the topics covered.

Description

When a current or former employee breaches restrictive covenants in an employment agreement, such as a noncompetition, non-solicitation, or nondisclosure agreement, the employer may often, depending on the jurisdiction, pursue damages against the employee as well as injunctive relief. Quantifying the damages to the business resulting from the breach of covenant can be challenging.
Continue Reading Jesse Coleman and Erik Weibust Present Webinar on “Recovering Damages for Breach of Restrictive Covenants” for Strafford

Decision overview

On August 7, 2020, the Fifth Circuit addressed an issue presently undecided by the Texas Supreme Court; namely, whether reformation of an overbroad non-compete restriction is appropriate, and perhaps even required, at the preliminary injunction stage or must occur as a remedy after trial upon the merits.

In reversing and remanding the contrary lower court decision that declined to reform an overboard non-compete due to an inadequate record, the Fifth Circuit held that reformation of an overly broad covenant not to compete agreement was warranted at the preliminary injunction stage. Calhoun v. Jack Doheny Companies, Inc., No. 20-20068, — F.3d —, 2020 WL 4557641 (5th Cir. Aug. 7, 2020).
Continue Reading Fifth Circuit Holds that Reformation of Texas Non-Competes Is Authorized, and Perhaps Required, at Preliminary Injunction Stage