minnesota non-compete legislationOn February 22, 2022, the Minnesota legislature came one step closer to banning non-compete clauses under certain circumstances. On that date, the Minnesota House Labor, Industry, Veterans and Military Affairs Finance and Policy Committee passed HF999.

HF999 renders non-compete clauses in Minnesota void and unenforceable unless either of two circumstances are present: (1) upon termination, the employee earned an annual salary that is more than the median family income for a family of four in Minnesota (as determined by the most recent US Census Bureau data), or (2) the employer agrees to pay, on a pro-rata basis, fifty percent of the employee’s highest annual salary over the past two years for the duration that the employee is subject to the non-compete clause.
Continue Reading Minnesota Advances Partial Ban on Non-Compete Clauses

The ongoing saga of DC’s controversial Ban on Non-Compete Agreements Amendment Act of 2020 (the “Act”) logged another chapter last week when the DC Council passed a further amendment delaying the effective date of the Act from April 1, 2022, until October 1, 2022. The Act, which was originally passed in December 2020, would prohibit employers from utilizing non-compete agreements, a statutory ban which has been adopted in certain other states, but would also prohibit employers from utilizing anti-moonlighting provisions or other “duty of loyalty” policies for DC employees. This latter prohibition would be a first-of-its-kind ban, and would prohibit employer policies which are generally viewed as both reasonable and non-controversial, even in states that have taken a negative view toward post-employment restrictive covenants.
Continue Reading The Effective Date of DC’s Non-Compete Ban Delayed Yet Again

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Trade secrets are critical intellectual property, and the threat to trade secrets continues to increase year after year. It’s vital for companies to protect trade secrets, both in the US
Continue Reading Upcoming Webinar! Protecting Trade Secrets and Enforcing Restrictive Covenants Internationally

Please join Seyfarth at the 2021 AIPLA Trade Secret Summit, which is being held November 8-9, 2021 at the headquarters of SolarWinds in Austin, Texas.

Boston Partner Erik Weibust is Chair of the AIPLA Trade Secret Committee and he will be offering welcoming remarks and moderating a panel entitled “Expert Advice: Practical tips for working with experts in a trade
Continue Reading Join Seyfarth at the 2021 Trade Secret Summit in Austin, Texas

For the fourth time in six years, Oregon is in the news again for an update to its non-compete laws.

Prior Oregon Law

Oregon last updated its non-compete laws just two years ago, with a statute that requires employers to provide terminated employees with a signed, written copy of their non-compete within 30 days of termination. That new obligation was in addition to other Oregon-specific requirements, including:

  1. Similar to Massachusetts’ 2018 law, the employer must inform the employee that a non-compete is a condition of employment in a written employment offer received at least two weeks before the employee’s first day, or the agreement must entered into upon a “bona fide” promotion;
  2. The employee must be engaged in administrative, executive, or professional work and must (a) perform predominantly intellectual, managerial or creative tasks, (b) exercise discretion and independent judgment, and (c) be salaried;
  3. The employee’s gross annual salary and commissions at the time of termination exceeds the median family income for a four-person family; and
  4. The duration of non-compete duration could not exceed 18 months.


Continue Reading Oregon Blazes a Trail of Non-Compete Amendments

The Massachusetts Superior Court recently held in Now Business Intelligence, Inc. v. Donahue that a temporary reassignment during a business slowdown, consisting of the addition of certain non-billable duties, does not constitute a material change invalidating a non-compete agreement. The dispute centered on Now Business Intelligence, Inc.’s (“NBI”) ability to hold its former employee, Sean Donahue (“Donahue”), liable for breach of his covenant not to compete.
Continue Reading Massachusetts Superior Court Axes an Attempt to Expand the Scope of the Seminal Non-Compete Law Concerning Material Change in Employment

On Thursday, April 23 at 12 p.m. Central, Seyfarth attorneys Erik Weibust, Marcus Mintz, and Jeremy Cohen are presenting Weathering the COVID-19 Storm With Your Trade Secrets and Customer Goodwill Intact, a webinar is Seyfarth’s Responding to the COVID-19 Pandemic Webinar Series.

COVID-19 has changed the way most companies are currently doing business, from requiring remote work, to using new
Continue Reading Upcoming Webinar! Weathering the COVID-19 Storm With Your Trade Secrets and Customer Goodwill Intact

The Ninth Circuit has certified questions to the California Supreme Court in Ixchel Pharma v. Biogen seeking guidance as to: 1) whether section 16600 of the California Business and Professions Code extends to contracts between businesses; and 2) whether pleading an independent wrongful act is necessary to state a claim for intentional interference with a contract outside the at-will employment contract context. The California Supreme Court has agreed to accept the Ninth Circuit’s inquiry and the appellate briefing was recently completed. We expect the Supreme Court to have oral argument and likely rule in the summer or fall of 2020. The California Supreme Court’s disposition of the novel issues could have sweeping ramifications that ripple through commercial and business industries.
Continue Reading Ninth Circuit Seeks Guidance From California Supreme Court on Business to Business Non-Competes

On June 28, 2019, Governor Mills signed LD 733, An Act To Promote Keeping Workers in Maine, into law.  The Act places limits on non-compete agreements and bans restrictive employment agreements.

Non-Compete Agreements

The Act defines a non-compete agreement as one restricting the employee “from working in the same or similar profession or in a specified geographic area for a certain period of time following termination of employment.”
Continue Reading Maine Governor Restricts Restrictive Covenants

On October 9, Los Angeles County Superior Court Judge Frederick Shaller confirmed his tentative decision weeks earlier that the “show cause” penalty in the NCAA’s bylaws violates California law.

The decision was issued as a tentative ruling on plaintiff (former running back coach at USC) Todd McNair’s claim for declaratory relief. McNair sought—and received—a determination that the NCAA bylaw provisions including the “show cause order” penalty levied against him were void under Cal. Bus. & Prof. Code § 16600.     
Continue Reading California State Court Rules that NCAA “Show Cause” Penalty Constitutes an “Unlawful Restraint” Under California Law