Perspectives on Trade Secrets, Noncompetes & Employee Mobility

New York’s potential ban of noncompetition agreements was curtailed by Governor Kathy Hochul. In June 2023, the state legislature passed a bill calling for a broad prohibition on noncompetes.

New York state is poised to enact a radical change to its employment laws: the elimination of all noncompetition agreements. A sweeping bill passed by the state Legislature in June 2023 now awaits signature from Governor Kathy Hochul, who is considering the measure. Although well-intentioned, this legislation is deeply misguided. The governor would be wise to reject it.

Recently, there has been an ever-increasing trend of companies utilizing “bring your own device” (BYOD) policies that permit employees to use their own personal devices, such as smartphones, tablets, or laptops, for work purposes.

In June 2023, a federal judge in the Northern District of Illinois denied Aon Corp.’s request for a temporary restraining order against Alliant Insurance Services, Inc. and nine former Aon employees after they allegedly poached 26 other Aon employees and misappropriated Aon’s trade secrets.

ArentFox Schiff is pleased to announce that 130 attorneys have been recognized by The Best Lawyers in America 2024, with an additional four attorneys highlighted as “Lawyers of the Year” and 69 attorneys listed as “Ones to Watch.”

New York, a state with a GDP larger than most sovereign nations, is on the brink of a significant change to its employment landscape. It may soon join the four other states that have banned employee noncompete agreements.

Earlier this year, the Federal Trade Commission (FTC) proposed a rule that would, with limited exceptions, bar employers from using employee noncompete agreements and require rescission of existing noncompete agreements.

Earlier this month, a federal judge in the Eastern District of Michigan overturned a jury verdict of nearly $105 million against Ford Motor Company for breach of contract and misappropriation of trade secrets.

On May 30, 2023, Jennifer Abruzzo, General Counsel of the National Labor Relations Board (NLRB), published a controversial enforcement memorandum.

On May 16, 2023, the Minnesota legislature passed a bill banning noncompetition agreements. The bill is expected to be signed shortly by Governor Tim Walz. The ban is set to take effect on July 1, 2023, and is not retroactive.

In USA v. Patel et al., US District Court Judge Victor A. Bolden granted the defendants’ motion for acquittal in a criminal prosecution alleging six current and former aerospace executives were involved in an illegal conspiracy.

In a case involving government contracts, the Fourth Circuit held that a company could proceed with its claims against three former employees for actions they took as employees – through their newly formed company - to pursue the same contract the company was pursuing.

Download Our Summary of the Most Important Cases.

On February 16, 2023, the Federal Trade Commission (FTC) held a public forum on its proposed rule that would, with limited exceptions, ban employers from using employee noncompete agreements and require rescission of existing noncompete agreements.

ArentFox Schiff is pleased to announce that five practice areas and 11 attorneys were recognized by Chambers Global 2023.

Helen Ji will moderate a table at the Chicago Women in IP Annual Progressive Networking Dinner on February 8, 2023.

On January 5, 2023, the Federal Trade Commission (FTC) published a proposed rule that, with limited exceptions, would both ban post-termination non-compete covenants in employment agreements and require rescission of existing post-termination non-competes.

ArentFox Schiff is pleased to announce that eight attorneys have been named to Washingtonian magazine’s 2022 Top Lawyers, which features the “top legal talent” in Washington, DC.

On January 5, 2023, the Federal Trade Commission (FTC) proposed a new rule that would ban employers from requiring workers to sign noncompetes and require recission of existing noncompetes. The FTC’s press release accompanying the rule states that its intent is to “promote greater dynamism.”

ArentFox Schiff is pleased to announce that Partner Matthew Prewitt, co-leader of the firm’s Trade Secrets, Non-Competes & Employee Mobility and Privacy, Cybersecurity, and Data Protection practices, has been named among Crain’s Chicago Business’ Notable Gen X Leaders in Law for 2022.

Protecting trade secrets is critical for any company. Being proactive and consistent is the best way to keep your company’s secrets safe.

In today’s competitive employment market, employee resignations are reaching near record-highs. Whether a separation is voluntary or involuntary, employee terminations often happen quickly and involve many moving parts. To protect the company and enhance enforceability.

Matt Prewitt will speak at the 5th Annual Sand Piper Partners LLC Trade Secrets Protection, Enforcement, and Litigation Conference on October 27, 2022.

There is often an assumption that restrictive covenants entered into in connection with a sale of business will be enforceable, even if they are broader in scope of time, geography, and restricted activity than would otherwise be acceptable to a court. 

ArentFox Schiff is pleased to announce the firm is being recognized by Global Citizen Experience (GCE) Lab School in Chicago for donating more than $250,000 in pro bono legal services.