Category Archives: Confidentiality Clauses

Employer Gets Dinged When Illinois Court Refuses Request for Partial Enforcement of Non-Compete Against Low-Wage Worker

Posted on by
Confidentiality Clauses, Non-Compete, Non-Solicit, Confidential Information, Illinois

Bad facts make bad law, the saying goes. In the non-compete world, it might more aptly be said that filing a weak lawsuit against a sympathetic defendant makes bad law.

A recent decision by the Illinois Appellate Court is a good example. The court refused to enforce a non-solicitation agreement that many judges would have upheld under the right circumstances. The likely (if unspoken) reason? The defendant was a low-wage employee who fixed car dents for a living and who hadn’t done anything particularly wrong after quitting his job.

Continue reading →

Non-Disclosure Clauses in Employment Agreements Held Void Under Wisconsin Law for Lack of Time Limitations

Posted on by
Non-Compete, Nondisclosure, Trade Secrets, Wisconsin, Confidential Information

It is well-settled that a non-compete must include a reasonable time limitation in order to be enforceable. Most employers understand this requirement and limit the duration of the their non-competes (and non-solicits) to 2 years or less.

But what about confidentiality/non-disclosure provisions in employment agreements? Must they also contain time limitations?

Continue reading →

Be Careful With Your Non-Compete Agreements When You Rehire Employees

Posted on by

office-4959785_1280

In a decision that may contain some useful reminders as businesses rehire employees who were let go during the coronavirus pandemic and economic downturn, the U.S. Court of Appeals for the First Circuit recently handed down a decision affirming the denial of a former employer’s request to enforce a non-competition agreement against an employee it had terminated and then rehired. Russomano v. Novo Nordisk Inc., No. 20-1173 (Ist. Cir. June 2, 2020). 

The employer did not have the employee sign a new agreement upon rehire, but instead tried to rely on the his original agreement. The First Circuit held that the non-compete ran from the date of the employee’s original termination and expired one year into his rehire, leaving him free to compete after its expiration. Continue reading →

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

Posted on by

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

A common issue when advising an employee changing jobs is how to deal with company information on the 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 →

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

Posted on by

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 →

Evidence Does Not Support Nationwide Injunction Against Competition by Former Employee

Posted on by

Confidentiality Clauses, Non-Compete, Restrictive Covenant, Employment Agreements, Nevada

The Nevada Supreme Court reversed an injunction entered by a district court, when it found the employer failed to put on sufficient evidence to justify an injunction enforcing a 50-state non-compete against a former employee. Here’s what happened. Continue reading →

Court Finds Two-State Non-Compete in Sale of Business Contract Void for Overbreadth

Posted on by

blue-pencil_cropSometimes a party to a contract gets greedy. As an example, sometimes a party seeks an onerous non-competition provision in a contract. Will a court enforce it? Will the court modify the agreement if it is too broad in some respect? Let’s see how this played out in a real case.  Continue reading →

Employment Agreements, Confidentiality Clauses & Whistleblower Rights – a Balancing Act

Posted on by

pexels-photo-26045

 

Most severance agreements these days specify that nothing in the agreement prevents the employee from speaking with regulators about possible violations of the law. This is due to regulators’ concerns that the confidentiality clause that is standard in severance agreements may chill employee whistleblowing.

But what about other employment agreements that have confidentiality clauses?

Employees sign all sorts of agreements with confidentiality restrictions, ranging from offer letters to deferred compensation award agreements. Must these agreements also exempt whistleblowing from their confidentiality obligations?

Continue reading →