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

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

On December 14 at 9:00 a.m. Central, Seyfarth partner J. Scott Humphrey is presenting “Trade Secrets in the Financial Services Industry,” a webinar for LawPracticeCLE. The webinar will include an overview of the types of restrictive covenants and trade secret protections commonly found in the financial services industry, a discussion of the Protocol for Broker

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

On Tuesday, November 17, 2020, at 1 p.m. Eastern, Houston partner Jesse Coleman and Boston partner Erik Weibust are presenting a webinar entitled “Available Remedies for Trade Secret and Restrictive Covenant Cases” for the Federal Bar Association and myLawCLE. Register for the webinar at the myLawCLE website. CLE credits are available, and an on-demand version of the webinar will be available following the live webinar. Below is a description of the program and an outline of the topics covered.

Description


Continue Reading Jesse Coleman and Erik Weibust to Present Webinar on “Available Remedies for Trade Secret and Restrictive Covenant Cases”

Robert Milligan—Seyfarth partner and co-chair of the Trade Secrets, Computer Fraud & Non-Competes practice group—was recently a speaker for the ABA’s “Annual Review: Key business law developments in bite-size pieces” podcast series. The podcast episode titled “Recent Developments in Employee Mobility, Restrictive Covenants and Trade Secrets” is available on the ABA website at https://www.americanbar.org/groups/business_law/resources/podcasts/to_the_extent_that/annual-review/employee-mobility/.

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

Seyfarth Partner Marcus L. Mintz was recently named as a co-chair of the Restrictive Covenants/Tortious Interference Subcommittee of the American Bar Association Litigation Section.

The Restrictive Covenants/Tortious Interference Subcommittee is part of the Business Torts & Unfair Competition Committee. The Committee and Subcommittee focus on keeping business litigators fully informed on issues and trends regarding

As many of our blog readers will know, the enforceability of restrictive covenants often depends on which state’s law applies to the dispute. For example, California is well known for refusing to enforce employee non-competition agreements and, recently, refusing to honor forum selection clauses in agreements with California employees without the employee first receiving legal advice. In contrast, with limited exceptions, most other states will generally enforce restrictive covenants. Consequently, for employers, controlling and choosing the correct law to  apply to its restrictive covenant agreements can be critical to protection of its business interests.
Continue Reading 6th Circuit Bolsters Employer’s Right to Contract for Chosen Law