The implementation of the District of Columbia’s ban on most non-competition agreements has been delayed by the District of Columbia Council until October 1, 2022.

On July 9, 2021, President Biden issued an Executive Order that seeks, among other things, to ban or limit non-competition agreements. Many states already limit such non-compete agreements, as opposed to non-solicitation or confidentiality agreements that are usually enforced.

Trade secret practitioners know that in order for information to constitute a trade secret under either federal or state law, it usually must not be known outside of the company and subject to reasonable methods to protect its secrecy. Notwithstanding, many trade secret lawsuits contain just a conclusory allegation that the information constitutes a “trade secret” with very vague allegations that the company employed reasonable measures to ensure secrecy. They should contain more, or risk dismissal.

Tesla recently sued a competitor and former employees for violations of state trade secret laws, breach of contract and interference with contract. This case is a bit different because in addition to claiming that the departing employees took technical data related to the production of Tesla's electric vehicles, the lawsuit also alleges that the employees took recruiting and employment data.