California Statute Does Not Void Promise Not to Compete During Employment

Non-Compete, California, Employment Agreements, Techno Lite, Emcod

Many believe that a non-compete agreement is never enforceable in California. A recent decision by the California Court of Appeal shows that there may be some protection afforded by such an agreement, at least as against competition during the employment relationship. Continue reading

1st Circuit Bars Pharma Executive From Working For Competitor For 18 Months

Non-Compete, Non-Solicit, Nondisclosure, CVS, PillPack, Rhode Island

After working for nearly three decades at CVS Pharmacy, Inc., including in senior-level jobs, John Lavin accepted a new position at a company called PillPack LLC, a direct competitor of CVS. PillPack is an online retail pharmacy founded in 2013 and wholly owned by Amazon.

At four points during his employment as a senior vice president, CVS required Lavin to sign a restrictive covenant agreement (“RCA”). Each RCA contained non-competition, non-solicitation, and nondisclosure covenants. The RCAs defined competitors of CVS but contained no geographic limitations. Each time Lavin signed a RCA, he was awarded CVS stock.

CVS Obtains A Preliminary Injunction Enforcing The Non-Compete

CVS sued Lavin and moved for a preliminary injunction, which was granted. Continue reading

Blue Pencil Really “Just an Eraser” — Indiana Courts Cannot Fix Overbroad Non-Competes By Adding New Terms

Non-Compete, Non-Solicit, Indiana, blue pencil doctrine, Employment Agreements

The Indiana Supreme Court[1] has reaffirmed its narrow interpretation of the “blue pencil” doctrine, holding that courts may not add terms to an overbroad non-solicitation or non-competition provision to make it reasonable even if the contract has a reformation clause.

As the court puts it: “This doctrine … is really just an eraser.”   Continue reading

To Delete or Not to Delete? Illinois Federal Court Helps Answer Question for Employees Changing Jobs

Illinois, Employment Agreements, Spoliation, Confidentiality Clauses, Trade Secrets

A common issue in employee transitions is how to deal with company information on an employee’s phone or personal laptop. Should the employee simply delete it? Or should a forensic copy be made before deletion to preserve evidence in anticipation of litigation?

A recent decision by U.S. District Court for the Northern District of Illinois gives comfort to those who opt for the more pragmatic approach of simply deleting the data. Even so, the case suggests steps that could have been taken to avoid litigation and a claim of destruction of evidence.  Continue reading

New Efforts On All Sides to End Non-Compete Agreements

Non-Compete, Employment Agreements, Restrictive Covenants, Senate Bill 2614

Non-compete agreements are in the cross-hairs of both federal and state officials, who are looking to ban non-competes in many instances. Senate Bill 2614, introduced on October 16, 2019, if enacted, would outlaw most non-compete agreements as a matter of federal law. There would be a few limited exceptions. In addition, the Attorneys General of nearly twenty states and the District of Columbia have urged the Federal Trade Commission to use its rulemaking authority to end the use of non-compete clauses in employment contracts. Continue reading

Dilly Dilly! The 7th Circuit Remands Preliminary Injunction in Bud Light Case for Not Being Set Forth in a Separate Document

 

Bud Light King

When is a preliminary injunction not really a preliminary injunction?  When it is contained in the body of the opinion granting the injunction, rather than being made a stand-alone injunctive order – at least according to the U.S. Court of Appeals for the Seventh Circuit.

Continue reading

When Is a Trade Secret Not a Trade Secret? When You Don’t Protect It Like One

Non-compete, confidentiality clauses, nondisclosure, employment agreements, Illinois

In Abrasic 90 Inc. v. Weldcote Metals, Inc., 364 F. Supp.3d 888 (N.D. Ill., 2019), U.S. District Court Judge Tharp of the Northern District of Illinois provides a virtual checklist of the steps a company should consider if it wants its important information to be treated as a trade secret. Alternatively, the decision serves as a valuable reminder of what happens if an employer fails to implement appropriate protective measures. Continue reading