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Ohio Appellate Court Holds Logistics Company was Improperly Limited to Half a Remedy, Reviving Noncompete Suit Against a Former Employee
The day after obtaining federal brokerage authority for the logistics company he formed a month earlier, Christopher Johnson, a North Carolina resident, resigned from his employment with Cincinnati-based Total Quality Logistics, LLC (“TQL”). TQL then sued Johnson and his company Patriot Logistics (“Patriot”) in the Clermont County Court of Common Pleas, alleging Johnson breached his […]
Restrictive Covenants in the First Circuit
To continue our series on trade secret employee contract clauses, we’ve surveyed the First Circuit for updates to the law relating to restrictive covenants. Such covenants remain predominantly governed by statutes in Maine, Massachusetts, New Hampshire, and Rhode Island, while Puerto Rico continues to govern them by common law. And with no significant updates since […]
Pinkerton Tobacco v. Kretek Int’l: Defendant’s Statute of Limitations Argument Goes Up in Smoke
A Central District of California court recently denied a defendant’s motion for summary judgment where the defendant argued that the plaintiff’s claims for trade secret misappropriation were barred by the applicable statute of limitations. The court determined that the statute of limitations did not bar the plaintiff’s claim because a reasonable jury could find that […]
An Update on the New York Noncompete Ban: It is Unlikely the Governor Will Sign It Anytime Soon
We wrote previously about how nobody seemed to be talking seriously about the noncompete bill that was passed by both the New York General Assembly and Senate last month. If signed by Governor Hochul, the bill would ban non-competes without a carveout even in the sale of a business context, which both California and the […]
Maine and Iowa Enact Job-Specific Limitations on Noncompetites
The two states recently have enacted restrictions on noncompete agreements being used in certain professions. In Maine, on June 1, 2023, the Governor signed into law LD 688/HP 457, entitled “An Act to Protect Access to Veterinary Care by Prohibiting Noncompete Agreements.” The act amends Maine Revised Statute title 26, § 599-A, which already prohibits […]
NLRB General Counsel Issues Memo Targeting Noncompete Agreements for Nonmanagerial and Nonsupervisory Employees
The National Labor Relations Board’s top lawyer, Jennifer Abruzzo, issued a General Counsel memo today instructing the Labor Board’s Regional Directors of her position that noncompete clauses for employees protected by the National Labor Relations Act (NLRA) (ie., nonmanagerial and nonsupervisory employees) in employment contracts and severance agreements violate federal labor law except in limited […]