Insights on Trade Secrets, Noncompetes & Employee Mobility

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. 

Lauren Schaefer will speak at PLI’s Noncompetes and Restrictive Covenants conference on September 29, 2022 at 8:30 AM PST.

Earlier this month, the US District Court for District of Maryland denied a partial motion for summary judgment in a case filed by Infotek Corporation against Mr. Dwight Preston, a former employee.  See Infotek Corp v. Preston, No. CCB-18-1386, 2022 WL 4121414 (D. Md. Sep. 9, 2022).  

In a previous article, Litigating Spoliation Claims in Trade Secret Cases, we discussed the rise of spoliation in trade secret and restrictive covenant cases. In that article, we provided background on trade secret laws and the spoliation standard, and laid out a “how-to” guide with practice tips.

Join Matthew Nolan for the 12th SIPS Symposium on Sustainable Development.

ArentFox Schiff is pleased to announce that 121 attorneys have been recognized by The Best Lawyers in America 2023, with an additional six attorneys highlighted as “Lawyers of the Year” and 40 attorneys listed as “Ones to Watch.”

ArentFox Schiff secured a complete victory in an appeal before the Third Circuit, which found our client responsible for $0 of actual or intended loss in a case that the federal government claimed was “one of the largest, if not the largest, theft of trade secrets in U.S. history.”

On June 15, Lina Khan was sworn in as Chairwoman of the Federal Trade Commission. In an interview with The Wall Street Journal last week, Khan announced that the agency plans to use enforcement actions to curtail the use of covenants not to compete.

The 2022 edition of Legal 500 US has rated 77 ArentFox Schiff attorneys as national leaders in their field. In addition, 19 of the firm’s practice areas were ranked among the best in the country.

The 2022 edition of Chambers USA: America’s Leading Lawyers for Business has recognized 66 ArentFox Schiff attorneys as leaders in their field.