Following a nationwide trend, New Jersey recently joined a growing list of states seeking to limit the use of non-compete and non-solicitation agreements by employers.
Illinois Imposes New Restrictions on Non-Competes and Non-Solicits
Illinois recently passed legislation amending the Freedom to Work Act (the “Act”), following a growing trend of states imposing greater restrictions on employers’ use and enforcement of non-competition and non-solicitation covenants.
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Illinois Governor Signs Non-Compete Legislation
On August 13, 2021, Governor Pritzker signed into law a bill amending the Illinois Freedom to Work Act governing restrictive covenants and non-competition agreements. On May 30, 2021, the Illinois General Assembly passed a bill codifying existing noncompete law in some respects and modifying it in others. We detailed the Bill in a prior blog here. The Bill is now the law. The amendments become effective on January 1, 2022 and will not apply retroactively.
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Lessons Learned: Tips on How to Allege and Argue Trade Secret Misappropriation at a Preliminary Injunction Hearing
Since its passage in 2016, the Defend Trade Secrets Act (DTSA) has increasingly become a valuable tool for employers seeking to enjoin former employees and competitors from misappropriating trade secrets. However, in requests for preliminary injunctive relief, companies often struggle with adequately alleging a likelihood of success on the merits of their claims under both the DTSA and state trade secret laws. A recent case filed in the Northern District of Illinois, Cortz, Inc. v. Doheny Enterprises, Inc., exemplifies this struggle and offers valuable lessons when moving for a preliminary injunction on a trade secret misappropriation claim.
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Illinois Limits Non-Compete Agreements Yet Again
On August 19, 2016, Governor Bruce Rauner officially signed into law the Illinois Freedom to Work Act (the “Act”), with an effective date of January 1, 2017. The Act, while short and to the point, will have a significant impact on private sector employers who routinely require all employees, regardless of job level or wage, to enter into non-competition agreements.
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The Defend Trade Secrets Act – Coming to a Federal Court Near You
The Defend Trade Secrets Act (the “DTSA”), the first of its kind at the federal level, has been passed in both the Senate and the House of Representatives. Now, the DTSA merely awaits President Obama’s expected signature to become law. The DTSA has the potential to transform trade secret litigation and create more uniform case law nationwide.
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