Deputy general counsel and labor and employment partner Mary Will spoke to Business Insurance about increased laws barring noncompete and nonsolicitation agreements, with Colorado being the latest state to enact such a law.
The Colorado law “shines a hard light” on what is and is not a trade secret, said Will. “Many employers think they have trade secrets, and sometimes they may not,” she stated, adding that they are “going to have to have their ducks in a row in terms of what they want to protect.”
Will also noted that a March ruling by the 5th U.S. Circuit Court of Appeals in New Orleans in Rouse Enterprises LLC v. James B. Clapp II said employers could not have candidates sign noncompete agreements before they are actually employed.