When a Non-Compete Agreement Has Been Violated

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Do you know what do do when a non-compete is violated? In Amit Bindra’s last episode, we talked about protecting trade secrets and confidential information. We continue this conversation today by diving into what happens when you need to take an employee to court for violating a non-compete, non-solicit or confidentiality agreement. We touch on what the process looks like and the impact of recent laws in Nevada, Utah, and Illinois.

With us is Amit Bindra from The Prinz Law Firm located in Chicago Illinois. He has extensive experience in employment law, and his practice is focused towards non-compete agreements, non-solicitation agreements, and trade secrets.

Key Points

  • A non-compete could be valid whether an employee leaves voluntarily or is terminated.
  • Legal redress for a violation often happens quickly.
  • A preliminary injunction or a TRO decision (temporary restraining order) could be issued.
  • Sometimes employees try to preempt an employer’s action by filing a suit to declare an agreement void or invalid.
  • Illinois recently passed the Illinois Freedom to Work Act to protect low wage earners.
  • Utah passed a law that a non-compete that exceeds one year is not enforceable.
  • Nevada amended their non-compete law to limit enforceability if a former employee did not solicit your client or if the client left on their own to seek that employee.
  • Congress recently passed the Defend Trade Secrets Act.
  • Employers use the Computer Fraud and Abuse Act to prevent an employee from accessing their computer system without authorization.
  • When drafting agreements, work with your attorney to protect the company’s interests.
  • Typically, employers include a clause in the agreements to ensure that if they win, attorney fees and expenses will be paid by the employee.

We hope you enjoy listening; have a great day!

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