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BT Currents - Hot Topics in Employment Law

14 Aug Does Your Non-Compete Agreement Survive Under Massachusetts’ New Non-Compete Law?

The Bay State’s long-anticipated non-compete law has finally hit the books. After years of debate, speculation, and worry, the final result does not appear to be as bad for employers as we feared.   The Basics   First, let’s review what the new Massachusetts law does not do.   The law – which impacts agreements entered into on or after October 1, 2018 – only applies to non-competes, or similar provisions under which an employee promises not to compete with the employer after the employment…

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23 Feb Wisconsin Supreme Court Splashes Cold-Water on the Enforceability of Non-Solicitation of Employee Covenants

  Wisconsin is one of the states which has a statute regarding the enforceability of restrictive covenants.  Under Wisconsin law, such a covenant is enforceable within a specific territory and for a specified time, but only if the restrictions imposed are reasonably necessary for the protection of the employer or principal (Wisconsin Statute § 103.465).   Wisconsin courts historically have applied the statute to all forms of employee limitations, including non-disclosure covenants.  See Tatge v. Chambers & Owen, Inc., 579 N.W.2d 217 (Wis. 1998).  In…

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18 Dec On Second Thought … State Supreme Court Questions Key Noncompete Drafting Strategy

  As I have written here many times, a key dynamic in the drafting and enforcement of noncompete agreements are the distinctions between different states’ laws. Therefore, it is a big deal when a state Supreme Court rules on one of the key issues in the area of noncompete law, as typically happens two to three times per year. The North Dakota Supreme Court recently issued a decision calling into question choice of forum (or venue) clauses as a tool to maximize the enforceability of noncompete agreements….

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12 Sep California Dreaming: Court Upholds Restrictions in Employment Agreement, Bars Use of Confidential Information

  As most multi-state employers already know, California is inimical to employer-employee non-compete agreements; indeed, the state even has a statute saying as much. Consequently, many employers tend to surrender before imposing any restrictions on departing workers in California. But, there’s hope. A recent decision from the U.S. District Court for the Northern District of California (Fidelity Brokerage Services, LLC v. Brett Rocine, Case No. 17-cv-4993-PJH) provides some solace for businesses trying to fend off competition from faithless employees in the Golden State.   The…

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19 Jul Third Circuit Addresses Application of Inevitable Disclosure Doctrine

  For an employer seeking to protect its trade secrets, the inevitable disclosure doctrine – when recognized – provides a sound basis for obtaining injunctive relief. This doctrine typically applies when a former employee, with knowledge of the former employer’s confidential or trade secret information, accepts a similar role with a competitor. Oftentimes, such an employee cannot “unlearn” the information provided by the former employer and will inevitably use it to the former employer’s competitive disadvantage.  Utilisave, LLC v. Miele, 2015 WL 5458960 (Del. Ch….

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