Following a national trend that we previously posted about, Illinois recently passed legislation to further restrict the use of non-compete agreements against low-wage workers. Under the previous version of the Illinois Freedom to Work Act, employers were prohibited from entering into non-compete agreements with employees making less than $13 per hour. The new version expands this restriction to include employees earning $75,000 or less and defines “earnings” to include salary, bonus, and other forms of taxable income. In addition, the amendment prohibits employers from entering into non-solicitation agreements with employees making $45,000 or less annually.
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Non-competes
Texas Supreme Court Issues First Texas Uniform Trade Secrets Act Decision
The Texas Supreme Court on Friday issued its first decision interpreting the recently enacted Texas Uniform Trade Secrets Act (TUTSA), holding that a defendant’s corporate representative does not have an absolute right to remain in the courtroom while a plaintiff’s trade secrets are discussed. In re M-I L.L.C. d/ba/ MI-Swaco, No. 14-1045 (Tex. Jan. 13, 2016). The Court’s decision is significant both because it is the first time the Texas Supreme Court has addressed the relatively new legislation (TUTSA was passed in late 2013), but also because its signals the Court’s willingness to interpret TUTSA expansively.
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2015 Trade Secret Year in Review: Key Courtroom Developments
Last year saw many important trade secret developments in the court. Here is our Top 5:
1. DuPont v. Kolon
This case had it all. What appeared at first to be the actions of one disgruntled employee turned out to be a long-standing high-level initiative of Kolon to target former DuPont employees in order to develop its fledgling para-aramid fiber using the secrets behind industry standard Kevlar. There was spoliation, 400 page expert reports arguing all of DuPont’s trade secrets were disclosed in its own patents, antitrust counterclaims, criminal charges, Korean investigations, a two-month jury trial culminating in a damages award just shy of a billion dollars, an appeal, and finally—in 2015—resolution. This epic battle came to end with Kolon being criminally indicted, paying $275 million to DuPont in restitution, and settling the civil case under undisclosed terms. Read about it here.Continue Reading 2015 Trade Secret Year in Review: Key Courtroom Developments
Federal Non Compete Law?
Earlier this month four Senators proposed a federal law to prohibit the use of covenants not compete against so-called “low wage employees.” The Mobility and Opportunity for Vulnerable Employees Act (MOVE Act) would seemingly be the first federal law related to non competes, which have traditionally been creatures of state law.
The MOVE Act covers…