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10,000 Lakes and . . . No Noncompetitive? Minnesota Passes Law Banning Non-Competes Effective July 1, 2023
As expected, on May 24, 2023, Governor Tim Walz signed a new law banning noncompete agreement in Minnesota. The ban will be effective for such agreements entered on or after July 1, 2023. By enacting the Omnibus Jobs, Economic Development, Labor and Industry appropriations bill (MN SF 30035), Minnesota becomes only the fourth state (along […]
Not All Documents Labeled Confidential Actually Are: Texas Jury Finds $23M Trade Secret Case Was Brought in Bad Faith | Seyfarth Shaw
On May 31, 2023, a Harris County Texas District Court jury found a telecom company acted in bad faith by filing a $23 million trade secret misappropriation lawsuit against a rival where the underlying technology was found to not actually be a trade secret. Background & Analysis In February 2019, Telecom firm Teligistics, Inc. (“Teligistics”) […]
Questions Remain Regarding Adequate Consideration under Illinois’ Freedom to Work Act | Seyfarth Shaw
On January 1, 2022, the latest amendments to the Illinois Freedom to Work Act (“Act”) became effective. As we previously described, that Act sets forth various requirements governing restrictive covenant agreements in Illinois. Among other things, the Act codified the so-called Fifield Rule by defining adequate consideration for enforcement of a restrictive covenant to be […]
Reminder: Minnesota Non-Compete Ban Takes Effect on Saturday, July 1
As we previously reported, Minnesota will soon become only the fourth state (along with California, Oklahoma and North Dakota) to ban non-competitors. The state’s new law renders void and unenforceable all covenants not to compete entered by employees or independent contractors on or after July 1, 2023. The only exceptions are noncompetitive agreements relating to […]
NLRB Finds Its First Noncompete Target—and Its Charges Go Well Beyond an “Overbroad” Noncompete
The National Labor Relations Board (NLRB) has found its first target under recent guidance issued in a memo from its General Counsel claiming that noncompete agreements may violate the National Labor Relations Act (NLRA). According to Bloomberg Law, “[t]the NLRB’s first enforcement action against an employer’s noncompete agreement targeted a Michigan cannabis processor and ended […]
Spilling Secrets Podcast: How to Pursue Damages in Trade Secrets Litigation
Now on Spilling Secrets, our podcast series on the future of non-compete and trade secret law: Trade secrets and non-compete litigation can result in massive damage awards, but those cases can also be unpredictable. Many viable trade secret claims went unexplored due to financial limitations or a lack of willingness to invest in litigation. Attorney […]