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Legal Risks of Hiring Competitors' Employees

 

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.

Agenda

Faculty

Stephen E. Baumann, II

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

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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