Last Tuesday, Stormy Daniels, a porn star, sued President Trump seeking to declare her 2016 confidentiality agreement with him unenforceable and void so that she can tell the world about her affair with the President back in 2006. Here’s why she may lose.
Employees owe a duty of loyalty to their employer and may not: (1) appropriate company trade secrets; (2) solicit away the employer’s customers while working for the employer; (3) solicit the departure of other employees while still working for the employer; (4) carry away confidential information.
A court order prohibiting defendant from using trade secrets must be broad enough to cover all possible circumstances while narrow enough to include only the illegal activities. Where that line lies depends on the circumstances of each particular case.
What a lot of companies do not realize, however, is that if they wait too long to ask for an injunction after finding out about the employee’s competitive activities, a court may deny their request simply because they waited too long
A hostile work environment arises when there is ongoing harassment, based on the plaintiff’s protected characteristic, so severe or pervasive that it has altered the conditions of employment and created an abusive working environment.
The business world is littered with the carcasses of companies which, after they shared their confidential information and trade secrets with a non-competitor, such as their client, supplier, or vendor, were undercut by that party, who all of a sudden realized that they could profit from the information by cutting out the middle-man.
The Tax Cuts and Jobs Act prohibits companies from claiming tax deduction for confidential settlements paid for sexual harassment and abuse and the related lawyer’s fees.
Any Texas companies that have employees who primarily work and reside in California, should update their non-compete agreements with such employees to meet the requirements of the California Labor Code Section 925.
Texas courts have issued several interesting opinions in 2017 regarding Texas non-compete law, explaining and defining when the Texas Covenants not to Compete Act applies and clarifying procedural mechanisms and remedies in non-compete disputes.
The Fifth Circuit recently considered whether the federal copyright and patent laws preempt (trump) Texas common law claim of unfair competition by misappropriation.