On Thursday, October 7, 2021, at 2:00 p.m. EST Boston partner Erik Weibust will present a webinar for Thomson Reuters’ West LegalEdCenter entitled “The Future of Noncompetes and What it Means for the Protection of Your Workforce and Trade Secrets: Part 1.”

This is the first installment of a three part series, and will focus on recent developments in federal
Continue Reading Erik Weibust to Present “The Future of Noncompetes and What it Means for the Protection of Your Workforce and Trade Secrets: Part 1” for Thomson Reuters

A recent Ninth Circuit ruling in a dispute between two health care staffing agencies clarifies that non-solicitation provisions in business-to-business collaboration agreements are not per se violations of the Sherman Act. Aya Healthcare Services, Inc. v. AMN Healthcare, Inc. No. 20-55679, 2021 WL 3671384 (9th Cir. Aug. 19, 2021).

Background and District Court Proceedings

When hospitals and other health care facilities have nursing shortages, travel nurses provide a temporary solution. Health care facilities often turn to staffing agencies to recruit nurses for these assignments.
Continue Reading Collaborate Away: Ninth Circuit Rules that Non-Solicitation Provisions in Collaboration Agreements Are Not Per Se Violations of Federal Antitrust Law

Earlier this month, Plaintiff Bright Side, LLC dba Herbal Edibles, a manufacturer of cannabis edibles, filed a lawsuit in New Mexico state court to enforce a 3-year non-compete and enjoin the misappropriation of its trade secret cannabis recipes by one its former bakers, Christina Johnson.

Based on the complaint, Ms. Johnson had been employed by Herbal Edibles as a baker for less than one year when she was terminated. Ms. Johnson allegedly started her own competing business, selling cannabis edibles such as “psychedelic sugar cookies” through Instagram and an open air market.
Continue Reading Cannabis Baker’s Plans of Own Business Potentially Put On Backburner

Along with 54 other lawyers and two paralegals from across the country, Seyfarth partners Kate Perrelli, Robert Milligan, and Erik Weibust recently signed a letter, penned by our friend Russell Beck, in response to President Biden’s July 9, 2021 Executive Order on Promoting Competition in the American Economy, which we previously wrote about. The letter, which
Continue Reading Seyfarth Partners Join More Than 50 Lawyers Nationwide to Recommend to the White House and FTC that Regulation of Non-Competes Should Be Left to the States

On Monday, July 19, 2021, Houston partner Jesse Coleman and Boston partner Erik Weibust are presenting a webinar entitled “Available Remedies in Trade Secret and Restrictive Covenant Cases” for LawPracticeCLE at 2 p.m. Eastern. It will also be available on demand.

Course Description

When a current or former employee or business partner misappropriates trade secrets or breaches a restrictive covenant
Continue Reading Jesse Coleman and Erik Weibust Present Webinar on “Available Remedies in Trade Secret and Restrictive Covenant Cases” for LawPracticeCLE

On Friday, July 9, 2021, the Biden Administration released its executive order on “Promoting Competition in the American Economy.” We previously wrote about the forthcoming order and predicted that the executive order’s treatment of non-compete provisions would be a general call to rulemaking versus a more authoritative or immediate directive to the FTC.
Continue Reading President Biden Issues Executive Order Encouraging the FTC to Consider Curtailing the Use of “Unfair” Non-Competes, but Without Providing any Additional Guidance or Details

As changes in restrictive covenants laws sweep the nation, Nevada is one of the latest jurisdictions to update its non-compete statute. Last month, the state legislature amended the Nevada Unfair Trade Practices Act to add new requirements for enforceability of non-competes.

The amendment makes the following changes in Nevada law:
Continue Reading Nevada Amends Non-Compete Statute Protecting Low-Wage Workers and Imposing Award of Attorneys’ Fees for Certain Violations

In the fourth installment of our 2021 Trade Secrets Webinar Series, Seyfarth attorneys Jesse Coleman, Matt Simmons, and Kevin Green outlined recent legal developments in Texas trade secret and non-compete law and how it is similar to and diverse from other jurisdictions. The webinar also covered how these latest developments impact counseling, litigation, and deals involving companies with employees based
Continue Reading Webinar Recap! How and Why Texas is Different When it Comes to Trade Secrets and Non-Competes

In the third installment of our 2021 Trade Secrets Webinar Series, Seyfarth attorneys Dan Hart, Kevin Young, and Cary Burke outlined the connection between wage and hour law and restrictive covenant law. We addressed how these important and impactful areas of employment law intersect and can, if not managed appropriately, create layered and compounding risks for employers. We also addressed
Continue Reading Webinar Recap! The Connection Between Wage and Hour & Restrictive Covenant Law

With unemployment levels reaching a new high during the global pandemic, courts across the country have become increasingly reluctant to enforce non-compete agreements in employment contracts. As an example, a recent district court case, Robert Garcia v. USA Industries, Inc., demonstrates what may be a shift in Texas’ formerly lenient approach to non-competes. There, the court granted the plaintiff’s request for a temporary restraining order against the non-compete clause in his severance agreement, finding not only that there was inadequate consideration to enforce the non-compete provision, but that the provision itself was unreasonable. While this is only one case, in light of this shift in the interpretation of non-compete agreements as reflected in this decision, companies should ensure that their non-competes are reasonable as to scope and time, supported by adequate consideration, and narrowly tailored to protect the company’s legitimate business interests so as to increase the chances of the agreement being upheld. This will only become more important as more and more states pass restrictive covenants legislation limiting what is permissible.
Continue Reading Texas Decision Highlights Concerns Regarding Limiting Enforceability of Non-Compete Agreements During COVID-19 Pandemic