As expected, on May 24, 2023, Governor Tim Walz signed a new law banning noncompete agreements 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 with California, Oklahoma and North Dakota) to ban noncompetes.
Earlier this year, the United States Department of Justice (“DOJ”) announced that it was launching the Disruptive Technology Strike Force (“Strike Force”) in an effort “to target illicit actors, strengthen supply chains and protect critical technological assets from being acquired or used by nation-state adversaries.” The DOJ’s initial announcement can be found here. The Strike Force is co-led by the DOJ and Commerce Department with the goal of countering efforts by hostile nation-states seeking to illegally acquire sensitive United States technology. On May 16, 2023, the DOJ announced criminal charges in five cases from five different U.S. Attorney’s Offices in connection with the Strike Force’s efforts. Two of the cases involve allegations of trade secret theft from U.S. technology companies with the intent to market the technology in foreign countries.
Epstein Becker Green (EBG) is pleased to announce the launch of our 50-State Noncompete Survey, designed to give employers a desktop guide to the great variety and specificity of noncompete laws across the United States.
EBG’s 50-State Noncompete Survey is here to help provide key insights on all of the following areas of noncompete law in your state:
Continue Reading Epstein Becker Green Launches 50-State Noncompete Survey for Employers
On February 21, 2023, the National Labor Relations Board (“NLRB” or “Board”) continued its aggressive application of the National Labor Relations Act (“Act” or “NLRA”) to workplaces without union representation and lessened the value of severance agreements for all employers by finding it unlawful for an employer to merely proffer a severance agreement that includes broad non-disparagement and confidentiality provisions to an employee. In McLaren Macomb, the Board held that a severance agreement that contains a confidentiality clause and a non-disparagement clause was unlawful because, in the Board’s view, these provisions impermissibly infringe on employees’ rights under the Act. Specifically, the Board found that these two provisions limit employees’ ability to discuss their wages, hours, and working conditions (which could include disparaging remarks) with other employees, prevent employees from assisting other employees seeking assistance, and hinder employees themselves from seeking assistance from the NLRB, unions, and other outside organizations.
Epstein Becker Green is proud to sponsor the American Intellectual Property Law Association’s (AIPLA) 2022 Trade Secret Summit in Miami, FL on December 8-9, 2022. The AIPLA Trade Secret Summit is the leading trade secret conference in the nation, with speakers from across the spectrum of private practitioners, in-house counsel, government, and academia, as well as fantastic networking opportunities.
Erik Weibust, Member of the Firm, is the outgoing-Chair of the AIPLA Trade Secret Committee and will speak on a panel entitled “Protecting AI-generated Inventions as Trade Secrets.” Eddie Loya, Member of the Firm, will be speaking on a
Continue Reading Save the Date – 2022 AIPLA Trade Secret Summit
We encourage our readers to visit Workforce Bulletin, the newest blog from our colleagues at Epstein Becker Green (EBG).
Workforce Bulletin will feature a range of cutting-edge issues—such as sexual harassment, diversity and inclusion, pay equity, artificial intelligence in the workplace, cybersecurity, and the impact of the coronavirus outbreak on human resources—that are of concern to employers across all industries. EBG’s full announcement is here.
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Continue Reading Workforce Bulletin: Insights on Labor and Employment Law – a New Blog from Epstein Becker Green
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., KNL-cv12-6018984-S, is a classic example of the blatant theft of an employer’s confidential and proprietary information that is so easily traceable to electronic files – and the costly consequences for the defendant employer’s complicity in that trade secret misappropriation.
Plaintiff LBI, Inc., a small Groton-based research and design development company, was to design, build and test the Navy’s underwater drones, and LBI partnered
Continue Reading New London Connecticut Superior Court Jury Awards $839,423 Verdict for Theft of U.S. Navy Underwater Drone Project Trade Secrets
Thomson Reuters Practical Law has released the 2019 update to “Non-Compete Laws: Connecticut,” a Practice Note co-authored with David S. Poppick and Carol J. Faherty.
See below to download it in PDF format—following is an excerpt:
OVERVIEW OF STATE NON-COMPETE LAW
1. If non-competes in your jurisdiction are governed by statute(s) or regulation(s), identify the state statute(s) or regulation(s) governing:
GENERAL STATUTE AND REGULATION
Connecticut has no statute or regulation that governs non-competes generally. Most non-compete agreements in Connecticut are governed by case law.
INDUSTRY- OR PROFESSION-SPECIFIC
Continue Reading Non-Compete Laws: Connecticut – Practice Note Update
A recent decision in Edward D. Jones & Co., LP v. John Kerr (S.D.In. 19-cv-03810 Nov. 14, 2019), illustrates the unique challenges that broker-dealers may face when enforcing post-employment covenants that prohibit former registered representatives (“RRs”) from soliciting clients. Edward Jones sued Kerr, a former RR, to enforce an employment contract that required him to return confidential information upon termination and prohibited him from “directly or indirectly” soliciting any Edward Jones’ client for a period of one year. Although Kerr did not challenge the validity of the confidentiality and non-solicitation provisions, the court denied Edward Jones’ request for a temporary
Continue Reading Enforcing Non-Solicitation Agreements Against Financial Professionals: A Court Finds Financial Professionals Have a Duty to Notify Clients About a Change of Employment
Thomson Reuters Practical Law has released the 2019 update to “Preparing for Non-Compete Litigation,” a Practice Note I co-authored with Zachary Jackson.
See below to download the full Note – following is an excerpt:
Non-compete litigation is typically fast-paced and expensive. An employer must act quickly when it suspects that an employee or former employee is violating a non-compete agreement (also referred to as a non-competition agreement or non-compete). It is critical to confirm that there is sufficient factual and legal support before initiating legal action. Filing a complaint for monetary damages or a request for an injunction can backfire
Continue Reading Preparing for Non-Compete Litigation – Practice Note Update