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Managing the Modern Workplace
V&E International Labor & Employment Resources

The Westeros Citizens Participation Act (Yeah, Right)

My disappointment with the Game of Thrones’ finale on Sunday night was greatly alleviated by the news on Monday morning that a bill amending the Texas anti-SLAPP law is on its way to the governor’s office. This amendment to the Texas Citizens Participation Act (the anti-SLAPP law) – should it be signed into law by Gov. Abbott – explicitly says that the TCPA does not apply to a legal action arising from an employer-employee relationship (among other relationships) that seeks to recover for trade secrets misappropriation, or seeks to enforce a non-compete or non-disparagement agreement.

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DOJ Settles Enforcement Action Targeting “No Poach” Agreements

In our February post discussing this issue, we predicted that federal criminal antitrust prosecutions of no-poaching and no-hire agreements were on the near horizon due to the U.S. Department of Justice, Antitrust Division’s (“DOJ”) October 2016 guidance alerting companies and HR professionals to beware of the antitrust risk involved in hiring and compensation decisions. Making good on these warnings, the DOJ recently announced a settlement with two of the world’s largest rail equipment suppliers (Germany-based Knorr-Bremse AG (“Knorr”) and Delaware corporation Westinghouse Air Brake Technologies Corporation (“Wabtec”)) to resolve allegations that the companies maintained long-standing agreements not to compete for employees.

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  • 23
  • March
  • 2018

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Inevitable Disclosure in Texas: Are Companies Protected from Employee Movement that Threatens Their Trade Secrets?

Imagine an employee who has access to valuable information regarding how your business is run. That employee then accepts a position with a competitor in which he would perform similar job duties and in which the sensitive or proprietary information he knows about would be helpful (and probably made him a strong candidate in the first place). Moreover, it is almost certain that the sensitive or proprietary information will be revealed by virtue of that position. Even without a non-compete or confidentiality agreement, the former employer may have a claim that his former employee is violating trade-secret laws in the new job. This concept — that the employee will necessarily divulge his former employer’s confidential information in a subsequent job — is called “inevitable disclosure.”

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Contributors

Thomas H. Wilson

Thomas H. Wilson Partner

Christopher V. Bacon

Christopher V. Bacon Counsel

Sean Becker

Sean Becker Partner

Stephen M. Jacobson

Stephen M. Jacobson Partner

Martin C. Luff

Martin Luff Counsel

Lawrence S. Elbaum Partner

S. Grace Ho

S. Grace Ho Counsel