Trade Secrets & Employee Mobility

Now on Spilling Secrets, our podcast series on the future of non-compete and trade secrets law:

As college basketball madness sweeps across the nation this March, we’re seizing the opportunity to explore the intriguing intersection of trade secrets law and the sports world.

In this episode of Spilling Secrets, Epstein Becker Green attorneys Peter A. Steinmeyer, James P. Flynn, Daniel R. Levy, and Susan Gross Sholinsky appeal to both sports fans and lawyers alike to examine the strategic use of non-compete agreements across various sports. From scrutinizing non-competes in football and dissecting no-poaching arrangements in golf to unraveling compelling trade secrets in boxing, the team embarks on an examination of the legal dynamics shaping competitive sports.

On January 1, 2022, amendments to the Illinois Freedom to Work Act, 820 ILCS 90/1, et seq. (the “Act”), became effective, trumpeting reforms and limitations on an employer’s ability to enter into covenants not to compete and covenants not to solicit with certain categories of employees whose actual or expected annualized rate of earnings fall below certain thresholds.

Now, just two short years later, the Illinois state legislature has introduced four different bills containing proposed amendments to the Act that would undermine, if not completely obliterate, the Act’s ...

Last summer, the New York State legislature made waves when it passed a bill that effectively would have banned noncompete agreements.  New York’s Governor vetoed that bill in late December 2023.  This year, however, it is expected that the legislature will consider, and maybe pass, a less draconian bill that the Governor may be more likely sign.  Instead of an outright ban, such a bill might limit the use of noncompetes by, for example, prohibiting noncompetes only for certain types of employees, such as low wage earners.

While the business and legal communities await the state ...

Now on Spilling Secrets, our podcast series on the future of non-compete and trade secrets law: Restrictive covenants are evolving at a record pace right now at both the federal and state levels. Employers are struggling to keep up, and that’s especially true in the health care industry.

In this episode of Spilling Secrets, Epstein Becker Green attorneys Katherine G. Rigby, Erik W. Weibust, Glenn P. Prives, and Denise Merna Dadika discuss restrictive covenants in relation to physician groups and other health care organizations employing direct care providers.

Explore Epstein Becker Green's 50-State Noncompete Survey, now featuring a 50-state health care supplement.

In a bombshell ruling last year that upended longstanding Delaware law, the Delaware Chancery Court ruled in Ainslie v. Cantor Fitzgerald, L.P., 2023 WL 106924 (Del. Ch. Jan. 4, 2023), that forfeiture-for-competition clauses, under which departing employees must forfeit certain long-term incentive compensation if they join a competitor, are akin to post-employment noncompetes and other restraints of trade.  As a result, the Chancery Court determined these forfeiture provisions should be analyzed under a reasonableness standard rather than the employee choice doctrine ...

Thomson Reuters Practical Law has released the 2024 update to “Trade Secrets Litigation,” co-authored by Peter A. Steinmeyer.

The Note discusses trade secrets litigation for employers whose employees or former employees have misappropriated trade secrets. This Note describes pre-litigation investigations, sending cease and desist letters, and contacting law enforcement. It also addresses filing a legal action, including forum selection and choice of law issues, deciding whether to include the employee’s new employer and third parties, common causes of action ...

Now on Spilling Secrets, our podcast series on the future of non-compete and trade secrets law:

On an employee’s first day, employers can begin protecting trade secrets by ensuring they maintain ownership over all intellectual property (IP) that the employee will create.

In this episode of Spilling Secrets, Epstein Becker Green attorneys A. Millie Warner, James P. Flynn, Hemant Gupta, and Adelee Traylor dive into the key steps employers can take to maintain IP ownership, including using the right verb tense in employee IP provisions.

Thomson Reuters Practical Law has released the 2024 update to “Preparing for Non-Compete Litigation,” co-authored by Peter A. Steinmeyer.

The Note describes the steps an employer can take to prepare to successfully litigate a non-compete action, the primary options for enforcing a non-compete agreement, and the strategic decisions involved with each option. It discusses gathering evidence, assessing the enforceability of a non-compete, considerations before initiating legal action, cease and desist letters, seeking declaratory judgments, damages, and ...

Thomson Reuters Practical Law has released the 2024 update to “Garden Leave Provisions in Employment Agreements,” co-authored by Peter A. Steinmeyer and Lauri F. Rasnick, Members of the Firm in the Employment, Labor & Workforce Management practice, in the firm’s Chicago and New York offices, respectively.

The Note discusses garden leave provisions in employment agreements as an alternative or a companion to traditional employee non-compete agreements. It addresses the differences between garden leave and non-compete provisions, the benefits and drawbacks ...

Our colleague attorney Phillip Antablin recently joined a roundtable discussion hosted by Russell Beck, regarding California’s expanded anti-restrictive covenants laws under Business and Professions Code Section 16600.

Phillip joined as many as 50 restrictive covenant, trade secrets, and employee mobility lawyers from around the country to discuss:

• the amendments to Business and Professions Code Section 16600 the new notice requirement to current and former employees that their restrictive covenant is void;
• Section 16600’s application as a whole, including Section ...