Know your rights when hiring competitors' employees and avoid legal pitfalls.
With a post-pandemic mobile workforce and an increasingly tight labor market, many employers are faced with the challenges and risks associated with hiring a competitor's employee, particularly with respect to candidates who pose a high competitive threat and/or had access to confidential information. Compounding these challenges are recent legislative developments limiting the use of restrictive covenants in numerous states, in addition to the FTC's proposed rulemaking banning non-compete agreements altogether. In this session, you will learn how restrictive covenants and non-disclosure agreements may impact hiring decisions, including possible challenges to their enforceability, best practices during the hiring process, the offer stage, and the commencement of employment to insulate the company from liability to the maximum extent possible. Should litigation erupt after hiring a competitor's employee, you will learn about the most prevalent claims against former employees and their new employers, the most common and most effective defenses to those claims, and the possible counterclaims that may turn the tide of litigation in an employer's favor. This topic will help you understand the legal and practical risks associated with hiring a competitor's employee, minimize those risks, utilize knowledge gained to effectively resolve issues short of litigation, and zealously defend any litigation that may ensue despite the employer's best efforts.
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Why Lorman?
Over 37 years and 1.4 million customers worth of experience providing continuing education. Our passion is providing you world-class training to help you succeed in business and as a professional.
Agenda
Non-Competes and Trade Secrets in American Business
- Hiring a Competitor's Employees and Risks Associated
- Non-Compete and Non-Solicitation Agreements and Recent Legislative Limitations
- Trade Secrets, Duties of Loyalty
Trigger Points When Hiring a Competitor's Employees
- Competitiveness of Positions
- Contractual Limitations
- State and Federal Law
- Relationship With Competitor
Best Practices in Hiring a Competitor's Employees
- The Interview Process
- Making an Offer
- Start of Employment
- Avoiding Allegations of Misappropriation
Preempting and Defending Claims
- Declaratory Judgment Actions
- Claims Against Former Employees
- Defenses to the Most Common Claims
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Why Lorman?
Over 37 years and 1.4 million customers worth of experience providing continuing education. Our passion is providing you world-class training to help you succeed in business and as a professional.
Credits
OnDemand Course
This course was last revised on April 18, 2023.
Call 1-866-352-9540 for further credit information.
- ASA 1.0
- This program may qualify for 1.0 continuing education hour(s) towards maintaining your ASA credential. Please contact ASA for more information at [email protected]. Please retain proof of attendance in the event your CE record is audited.
- AK CLE 1.0
- Alaska attorneys may receive 1.0 hours of continuing legal education for completing this program. Please contact the Alaska Bar Association or go to www.alaskabar.org for details regarding reciprocity with other states.
- AL CLE 1.1
- This course or a portion thereof has been approved by the Alabama State Mandatory Continuing Legal Education Commission for a maximum of 1.1 hours credit.
- AR CLE 1.0
- This course has been approved for 1.0 hours of CLE by the Arkansas CLE Board.
- Arizona CLE 1.0
- The Arizona State Bar does not pre-approve or pre-certify MCLE programs. However, records of this program and attendance will be maintained by Lorman Education Services for auditing purposes. This activity may qualify for up to 1.0 hours toward your annual CLE requirement for the State Bar of Arizona.
- CA MCLE 1.0
- Lorman Education Services is a State Bar of California approved MCLE sponsor and this course qualifies for 1.0 CLE hours of participatory credit.
- CT CLE 1.0
- Neither the Connecticut Judicial Branch nor the Commission on Minimum Continuing Legal Education approve or accredit CLE providers or activities. This course has been approved for CLE credit in jurisdictions aside from CT and therefore it automatically meets the content and delivery requirements in Connecticut. Credit is based on a 60 minute credit hour and shall be awarded as follows: 1.0 CLE credit(s).
- GA CLE 1.0
- This program has been approved by the Georgia Commission on Continuing Lawyer Competency for 1.0 CLE hours.
- HI CLE 1.0
- This program was approved by the Hawaii State Board of Continuing Legal Education for 1.0 CLE credit hours.
- MO CLE 1.3
- This course qualifies for self-study CLE credit in Missouri.
- ND CLE 1.0
- North Dakota CLE policy does not allow for pre-approval of any self-study courses. This course may qualify for up to 1.0 hours of CLE credit.
- NH MCLE 1.1
- NH MCLE does not approve or accredit CLE activities for the NH Minimum CLE requirement. Lorman Education Services believes this Ondemand course meets the requirement of NH Supreme Court Rule 53 and may qualify for CLE credit(s). Program Length: 67 Minutes.
- NM CLE 1.1
- This program has been approved by the New Mexico Minimum Continuing Legal Education Board for 1.1 hours of credit.
- NV CLE 1.0
- This program has been approved by the Nevada Board of Continuing Legal Education for 1.0 CLE hours.
- PA CLE 1.0
- This Distance Learning program has been approved by the Pennsylvania Continuing Legal Education Board for 1.0 hours of substantive law, practice and procedure CLE credit.
- RI CLE 1.0
- This program has been approved by the Rhode Island Mandatory Continuing Legal Education Commission for 1.0 hours of CLE credit.
- VT CLE 1.0
- This self-study program has been approved by the Mandatory Continuing Legal Education Board of Vermont for 1.0 hour(s) of CLE credit. Please note: Attorneys may only claim 12 credits per compliance period in this format. This course is considered "Non-Moderated Programming without Interactivity".
- WA CLE 1.0
- This program has been approved by the Washington State Board of Continuing Legal Education for 1.0 hours of A/V credit under the Law & Legal Procedure category.
- WV MCLE 1.3
- This program has been approved by the West Virginia State Bar MCLE Commission for 1.3 MCLE hours.
HR Certification Institute 1.0
- This E-Learning program has been pre-approved for 1.0 (General) recertification credit hours toward aPHR®, aPHRi(TM), PHR®, PHRca®, SPHR®, GPHR®, PHRi(TM), and SPHRi(TM) recertification through HR Certification Institute® (HRCI®). For more information about certification or recertification, please visit the HR Certification Institute website at www.hrci.org.
SHRM 1.0
- Lorman Education Services is recognized by SHRM to offer Professional Development Credits (PDCs) for the SHRM-CPSM or SHRM-SCPSM. This program is valid for 1.0 PDC(s) for the SHRM-CP or SHRM-SCP.
To earn each credit Lorman offers through the OnDemand learning platform, you need to watch 100% of the program. Also, for certain credits you will need to fulfill additional requirements which will be displayed on the "credits" tab when viewing the course.
- Those applying for AIA and HRCI must view 100% of the program and answer the questions following the program.
This program does NOT qualify, nor meet the National Standard for NASBA accreditation.
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Why Lorman?
Over 37 years and 1.4 million customers worth of experience providing continuing education. Our passion is providing you world-class training to help you succeed in business and as a professional.
Faculty
Stephen E. Baumann, II
Littler Mendelson P.C.
- Provides nationwide, risk-adjusted advice to employers of all sizes, from small startups to Fortune 500 companies, about enforcement of non-compete agreements and other unfair competition
- Has successfully negotiated resolutions of countless unfair competition disputes, whether protecting companies and new hires from threats of litigation by former employers or protecting companies’ assets and relationships when employees leave to join a competitor
- Has a robust litigation practice in federal and state courts nationwide, including complex litigation involving trade secrets, noncompete agreements, discrimination, retaliation, harassment, failure to accommodate, and wrongful termination
- Has obtained temporary restraining orders (TROs) and preliminary injunctions following hotly contested evidentiary proceedings to protect the trade secrets, confidential information, and competitive advantages of energy companies, advertising companies, mid-size distributing companies, medical device companies, industrial maintenance and repair companies, and others
- Has also obtained Rule 12 dismissal of allegations seeking a declaratory judgment on enforceability of a non-compete agreement, as well as damages for outrageous conduct, intentional infliction of emotional distress, and invasion of privacy, on behalf of an alternative energy company, including an award of fees and costs against plaintiff
- Author of various articles for Littler Mendelson P.C., including A New, More Restrictive Era for Restrictive Covenants in Colorado and Colorado Criminalizes Certain Restrictive Covenants
Danielle Van Katwyk
Littler Mendelson P.C.
- Practice consists of defending employers in federal and state court against claims of discrimination and harassment, retaliatory discharge, and restrictive covenant matters
- Representative experience includes obtaining a temporary restraining order in federal court, restraining former employee from disclosing employer’s confidential information, and soliciting client’s customers.
- Has presented on various topics, including Restrictive Covenants Updates: The Cutting Edge on Colorado and Beyond and Restrictive Covenants During the Great Resignation: Legislative Updates and Strategic Approaches for Employers
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Why Lorman?
Over 37 years and 1.4 million customers worth of experience providing continuing education. Our passion is providing you world-class training to help you succeed in business and as a professional.
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