The Vermont Legislature kicked off 2019 with bill H.1, seeking to ban non-competes in the Green Mountain State. The new bill has been filed by Martin LaLonde, who promulgated an identical bill last January. The 2018 bill was read and referred to the Committee on Commerce and Economic Development and never made further progress. Rep. LaLonde has a new co-sponsor
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Top 10 Developments and Headlines in Trade Secret, Non-Compete, and Computer Fraud Law in 2018/2019
Continuing our annual tradition, we have compiled our top developments and headlines for 2018-2019 in trade secret, non-compete, and computer fraud law.
1. Government Agencies Increasing Scrutiny of Restrictive Covenants
In mid-2018, the Attorneys General of ten states investigated several franchisors for their alleged use of “no poach” provisions in their franchise agreements. In a July 9, 2018, letter, the Attorneys General for New Jersey, Massachusetts, California, Washington, D.C., Illinois, Maryland, Minnesota, New York, Oregon, Pennsylvania, and Rhode Island requested information from several franchisors about their alleged use of such provisions. Less than twenty-four hours later, some franchisors (mostly different ones than those who received the information demands) entered into agreements with the Washington State Attorney General’s Office to remove such clauses from their franchise agreements. The recent focus by state law enforcement on franchisors is a new twist, given that restrictive covenant agreements in the franchise industry are typically given more leeway than in the employment context.
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Proposed Federal Non-Compete Legislation Could Have Unintended Consequences
Last week, Florida Senator Marco Rubio introduced the “Freedom to Compete Act” (the “Act”) proposing to amend the Fair Labor Standards Act (FLSA) of 1938 to ban non-competes for most non-exempt workers. The Act is broadly drafted to void any agreement that restricts “any work for another employer,” “any work in a specified geographical area,” and “any work for another employer that is similar” to the employee’s prior work. While it purports to void only non-compete agreements, the bill’s use of the sweeping language “any work” could be interpreted to ban not only non-compete agreements, but other post-employment restrictive covenants such as customer and employee non-solicitation agreements. Further, the Act (if passed) would purportedly apply retroactively to agreements entered into before its enactment.
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Upcoming Webinar! 2018 Year in Review: What You Need to Know about the Recent Cases and Developments in Trade Secrets, Non-Competes, and Computer Fraud
Please join us for a one-hour CLE webinar on Tuesday, January 29, 2019, at 1:00 p.m. Eastern / 12:00 p.m. Central / 10:00 a.m. Pacific.
On Tuesday, January 29 at 12:00 p.m. Central Time, in Seyfarth’s first installment of its 2019 Trade Secrets Webinar Series, Seyfarth attorneys will review noteworthy cases and legal developments from across the nation over the
Fiduciary Duties with Respect to Trade Secrets for Dual or Multiple Directors
As a special feature of our blog—guest postings by experts, clients, and other professionals—please enjoy this blog entry from Donal O’Connell, Managing Director of Chawton Innovation Services Ltd.
Introduction
The purpose of this short paper is to ‘join the dots’ between a director’s fiduciary duties and especially a person holding dual or multiple directorships and trade secrets.
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2018 Trade Secrets and Non-Competes Webinar Series Year in Review
Throughout 2018, Seyfarth Shaw’s dedicated Trade Secrets, Computer Fraud & Non-Competes Practice Group hosted a series of CLE webinars that addressed significant issues facing clients today in this important and ever-changing area of law. The series consisted of seven webinars:
- 2017 National Year in Review: What You Need to Know About the Recent Cases/Developments in Trade Secrets, Non-Compete and Computer Fraud Law
- Protecting Confidential Information and Client Relationships in the Financial Services Industry
- The Anatomy of a Trade Secret Audit
- Protecting Trade Secrets from Cyber and Other Threats
- 2018 Massachusetts Non-Compete and Trade Secrets Reform
- Protecting Trade Secrets Abroad and Enforcing Rights Abroad and in the U.S.
- Criminal Trade Secret Theft: What You Need to Know
As a conclusion to this well-received 2018 webinar series, we compiled a list of key takeaway points for each program, which are listed below. For those clients who missed any of the programs in this year’s series, recordings of the webinars are available on the blog, or you may click on the title of each available webinar below for the online recording. Seyfarth Trade Secrets, Computer Fraud & Non-Compete attorneys are happy to discuss presenting similar presentations to your company for CLE credit. Seyfarth will continue its trade secrets webinar programming in 2019, and we will release the 2019 trade secrets webinar series topics in the coming weeks.
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New Trade Secrets Law for France
As a special feature of our blog—guest postings by experts, clients, and other professionals—please enjoy this blog entry from Gilles Rouvier, founding partner of Lawways.
Context
On July 31st, 2018, France adopted a law on trade secret protection, loi n°2018-670 (hereafter “French Trade Secret Law“). The aim of this French Trade Secret Law is to offer companies protection for their economic and strategic information. This legislation implements the Directive 2016/943/EU on the protection of undisclosed know-how and business information (trade secrets) against their unlawful acquisition, use, and disclosure, enacted by the European Parliament and the Council of the European Union (EU) on June 8th, 2016.
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Dawn Mertineit to Present on New Massachusetts Non-Compete Agreements Law at Boston Bar Association Conference
On Thursday, October 25, 2018, at 3:30 p.m. Eastern, Seyfarth Partner Dawn Mertineit will be a panelist for Boston Bar Association’s first ever Employment Law Conference. The “Non-Compete Agreements—What You Need to Know About the New Law” presentation is focused on the recently passed Massachusetts non-compete law and how it’s been affecting businesses with Massachusetts employees.
For more information or
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Today’s the Day: Massachusetts’ New Non-Compete Law Goes into Effect
Readers of our blog will recall that this summer, the Massachusetts legislature passed a non-compete reform bill after nearly a decade of fruitless attempts. The new law goes into effect today, meaning that any agreements signed today or in the future will need to comply with the new law.
As a brief recap, the key provisions of the new bill are as follows:
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Now Available! 50 State Desktop Reference, 2018-2019 Edition
What Businesses Need to Know About Non-Compete and Trade Secrets Law
Seyfarth’s Trade Secrets, Computer Fraud, and Non-Competes Practice Group is pleased to provide the 2018-2019 edition of our one-stop 50 State Desktop Reference, which surveys the most-asked questions related to the use of restrictive covenants and intellectual capital protection in all 50 states, including the recent non-compete legislation passed
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