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Anyone who has had even passing exposure to technology companies has dealt with Non-Disclosure Agreements (commonly referred to as "NDAs" in high-tech companies but "CDAs" in pharma/biotech to distinguish them from the other...more
As we continue to report, noncompete agreements have been subject to unprecedented scrutiny over the past few years. Last April, the Federal Trade Commission (FTC) finalized a rule (“Final Rule”) ostensibly banning...more
In Valkyrie AI LLC v. PriceWaterhouseCoopers LLP, 2024 N.Y. Slip Op. 06141 (1st Dept. Dec. 5, 2024) (here), the Appellate Division, First Department affirmed an order involving claims for unfair competition, tortious...more
On November 25, 2024, the Indiana Court of Appeals ruled that a former chief operating officer (COO) at a medical fee collection company did not breach noncompete agreements and a nondisclosure provision when she took a job...more
As the Federal Trade Commission (FTC) implements “the final rule” banning non-competes, businesses with sensitive intellectual property (IP) must look to alternative measures to safeguard it. Despite apprehension about the...more
Introduction - As we enter a new era of business landscape dynamics, Seyfarth Shaw is pleased to present the latest edition of our annual cornerstone publication. This comprehensive 50-State Non-Compete Desktop Reference,...more
The Rhode Island legislature recently moved two bills forward that would limit employers’ use of restrictive covenants with employees. On June 19, 2023, the Rhode Island House of Representatives passed a bill, Senate Bill (S)...more
In a case that should make employers rethink how they draft non-disparagement clauses, a panel of the DC Circuit ruled in a split decision that a provision that required a non-profit simply to “direct” certain executives not...more
In the second installment of this two-part Labor Law Insider podcast, attorneys Terry Potter and Tom O’Day join host Tom Godar to discuss the impact of the National Labor Relations Board decision of McLaren Macomb, as well as...more
The Background: McLaren Macomb - On February 21, 2023, the National Labor Relations Board (“the Board”) decided McLaren Macomb, a case where a hospital offered severance pay to eleven permanently furloughed employees in...more
In the United States, as many as one in five employees (some 30 million individuals) are currently subject to some form of “non-compete” agreement with their employer. Although the details can vary widely, such agreements...more
The Labor Law Insider invites two experienced counsel, attorneys Terry Potter and Tom O’Day, to explore the implications of the National Labor Relations Board’s decision in McLaren Macomb, issued in late February, as well as...more
Venture capitalists refer to “secret sauce” as the differentiator that gives one startup the edge over competitors. The secret sauce, properly protected, is a trade secret. However, employee turnover can threaten the secret...more
By now, most compliance professionals are aware of the Federal Trade Commission (FTC) press release from January 5, which announced its proposed rule to ban noncompete clauses. The FTC proposed adding a new subchapter J,...more
Last month we published an article on the NLRB’s decision in McLaren Macomb Hospital where the Board reversed course on the NLRB’s prior position on interpreting severance agreements under Section 7 of the NLRA. In McLaren,...more
THE MCLAREN RULING - Just when employers thought the Federal Trade Commission (FTC) proposed rule banning non-competes in employment agreements was confounding, employers are now faced with a new paradigm...more
Q: What is the FTC, and why is my non-compete agreement any of its business? A: The FTC is short for the Federal Trade Commission, the agency responsible for regulating, among other things, unfair methods of competition...more
It is no hidden secret that many employers use various restrictive covenants to protect their trade secrets, confidential information, goodwill, and customer relationships. For example, employers often use non-compete...more
Non-compete clauses are a common component in employment agreements for many businesses and healthcare providers. Employers and healthcare providers, ranging from large public hospitals and Fortune 500 companies to small...more
Over the last several years, the Oregon Legislature has whittled away employers’ ability to enforce employee non-competition agreements (see our posts from 2007, 2015). Senate Bill 169, which Governor Brown signed into law...more
For employers, non-compete agreements and other restrictive covenants, such as non-solicitation or non-disclosure agreements, can serve as a powerful tool to protect their business and defend their interests. However, these...more
As sophisticated employers know, an employer must track and comply with developments not only in federal law, but also state and local law. This blog post details key changes in employment laws in the Commonwealth of Virginia...more
A New London Connecticut Superior Court jury awarded an $839,423 verdict in November 2019, involving theft of trade secrets for a $70 million U.S. Navy underwater drone project. This case, LBI, Inc. v. Sparks, et al.,...more
Manhattan restaurant Sottolio, Inc., d/b/a Norma Gastronomia Siciliana hired Giuseppe Manco—“a noted Italian pizza chef, or pizzaiolo”—to consult on its menu. At the same time, Manco and his wife purchased a 9% interest in...more
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....more