Protecting Investments In IP And People

Companies are advised to pay attention to recent DOJ Antitrust Division initiatives to go after anti-poaching pacts between companies, including by way of criminal prosecutions. Non-compete agreements can subject a company to criminal fines of up to $100 million or double the loss or gain from the agreement, and individuals involved can face prison time. The feds, the individual states and the courts are all coming down on the side of workers’ rights in this area, and even in Delaware, long known as having laws favoring corporations, recent state court decisions suggest greater recognition for employee mobility rights. This does not mean, however, that companies are without options. Employers may still require employees to sign confidentiality and non-disclosure agreements to protect sensitive information, and the DOJ’s Antitrust Division has recognized situations where employee non-solicitation provisions are permissible. This article from Morrison & Foerster attorneys Roxann Henry and Eric Akira Tate helps sort it out.