Buyer beware as the asset protection afforded by non-disclosure and non-solicitation agreements signed by prospective purchasers may not survive the sale. This issue was addressed in a recent federal decision in Illinois offering some cautionary reminders for business buyers. In this case, Keywell LLC (“Keywell”) sought to sell its assets. Croniment Holdings, Inc. (“Croniment”)
Ring in the New Year – New Illinois Pregnancy Fairness Law Goes Into Effect January 1st
What is the Illinois Pregnancy Fairness Law?
Effective January 1, 2015, the Illinois Pregnancy Fairness Law provides workplace protections to all expectant mothers, regardless of an employer’s size. The Illinois Pregnancy Fairness Law amends the Illinois Human Rights Act, adding “pregnancy” as a protected class under state law. “Pregnancy” is defined broadly to mean “pregnancy
Franchisors and Franchisees as Joint Employers – NLRB’s Next Steps in McDonald’s Claims
Today the Office of the General Counsel of the National Labor Relations Board (“NLRB”) took its next step in the investigation of labor practices within the McDonald’s franchise system and issued consolidated complaints against McDonald’s franchisees and the franchisor – McDonald’s USA, LLC on the theory that the franchisor is a joint employer with its
Common Sense – Businesses Need to Take Steps to Protect Their Confidential Information
A recent decision from the Seventh Circuit is a reminder that if a business wants trade secret protection for certain information, it must actually implement reasonable measures to protect the secrecy of that information. While what is “reasonable” depends on the facts of each case, a business should take basic steps such using confidentiality agreements
Shareholder Inspection Rights Offer an Effective Shield Against Self-Dealing
The officers and directors of a corporation are vested with broad protection in the management the entity’s affairs. This broad discretion can make it difficult for minority shareholders to ensure that those with majority control, often serving as the corporation’s management, are operating the entity to maximize value as opposed to promoting individual self-interest. However
Supreme Court Fails to Provide FCPA Guidance to U.S. Companies Doing Business Overseas
In a surprise move, on Oct. 6, the U.S. Supreme Court decided to not decide one of the most anticipated cases of the year. No, not the much ballyhooed same sex marriage cases the Supreme Court declined to decide.
The other surprise move by the Supreme Court that same day; little noted by the media
Setting Forth the Damages the Employer is Entitled to if an Employee Breaches His/Her Non-Competition Agreement Will Help Deter Breaches and Save Money in Litigation
Business Tip: Include a liquidated damages clause in your restrictive covenant agreements that clearly sets forth how damages will be calculated in the event your employee breaches the non-competition agreement.
As a President, CEO or General Counsel of your company, you have recognized the need to have your key executives and employees enter into non-competition
Make Sure Your Non-Competition, Non-Disclosure and Non-Solicitation Agreements Have Extension Clauses
Business Tip: Include extension clauses in your restrictive covenant agreements to ensure that the time of the restrictions will not begin to run until the employee has stopped violating the restrictions.
In order to make sure that an employer gets the full benefit of the restrictive time period in its non-competition, non-disclosure or non-solicitation agreements
Financial Information, Aging and Sales Reports and Laboratory Equipment Wish List Found To Be Trade Secrets
In a recent decision from the United States District Court for the Northern District of Illinois in Intertek USA Inc. v. AmSpec, LLC, the Court found that certain financial information, aging and sales reports and laboratory equipment wish list qualified as trade secrets and entered a preliminary injunction to protect the use of that
Competition is Competition Regardless of One’s Physical Location
A recent Illinois Appellate Court decision found that one’s physical location is irrelevant in determining whether one has violated a non-competition provision.
In this case, the defendant owned and operated an integrative medicine business that provided services to patients in and around Bloomington and Peoria, Illinois. Defendant sold his business to the plaintiff through an