Update on the Confusion in Illinois Non-Compete Law

Illinois’ appellate courts are divided into five districts. Illinois’ lower (or trial) courts typically follow the decisions of the appellate district in which they are located. Unfortunately for employees and employers alike, those districts currently disagree about the appropriate standard for enforcing non-compete agreements. As a result, the enforceability of non-compete agreements in Illinois currently depends in part on where a lawsuit is filed.

The most recent appellate case that added to this confusion was the Illinois Court of Appeals for the Second District’s December 2010 opinion in Reliable Fire Equipment Company v. Arredondo, which we blogged about here. However, earlier this year, the Illinois Supreme Court granted leave to appeal in that case so that it could resolve the disagreement in the various appellate districts. Oral argument in that case has now been set for September 22, 2011. As a result, we may be one step closer to resolving the current confusion in Illinois non-compete law. Stay tuned.

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Divide by three – APRA turns twelve prudential standards into four

Divide by three – APRA turns twelve prudential standards into four

By Greg Moss, Gadens Lawyers, Sydney

Following its December 2010 consultation package, the Australian Prudential Regulation Authority (APRA) has released four prudential standards, intended to consolidate 12 existing standards across the authorised deposit-taking, general insurance and life insurance industries. read more

 

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Advertising Alert: IS THIS THE END OF PREMIUM TEXT MESSAGING GAMES?

More than four years after lawsuits were filed against Fox Broadcasting, NBC, and other parties claiming that sweepstakes promoted on the TV shows “Deal Or No Deal” and “American Idol” were illegal under California and Massachusetts law, the parties have reached a tentative settlement.

The settlement, scheduled for a preliminary hearing in federal district court in California on September 19, provides that the defendants will:

1)  refund all premium text message charges paid by class members – potentially millions of people – who submit valid claims,

For the full alert, please click here.

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HEALTH REFORM: CMS Innovation Center Announces Four Models in Bundled Payments for Care Improvement Initiative

On August 23, 2011, the Centers for Medicare & Medicaid Services (“CMS”) Innovation Center announced a new initiative to encourage health care providers to better coordinate patient care.[1] The Bundled Payments for Care Improvement Initiative (“Bundled Payments Initiative”) seeks to align the financial incentives among hospitals, physicians, and non-physician practitioners through the use of a single negotiated payment for all services provided during an episode of care. The use of a bundled payment is expected to encourage hospitals, doctors, and other specialists to coordinate in treating a patient’s specific condition during a single hospital stay and recovery.

This is one of several new initiatives from the CMS Innovation Center intended to change the existing Medicare payment structure from one that pays for the quantity of care to one that pays for the quality of care. Participation in the Bundled Payments Initiative may serve as a first step for forming partnerships to improve care coordination and encourage participants to move into initiatives aimed at improving population health.

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Lawyers Karl-Erich Trisberg and Tauno Tark joined TARK GRUNTE SUTKIENE team

Lawyers Karl-Erich Trisberg and Tauno Tark commenced work at the Tallinn Office of TARK GRUNTE SUTKIENE in early September. Both of them graduated from the University of Tartu with a B.A in law in 2010 and are planning to finish their masters’ studies next spring. Karl-Erich, who used to work as a lawyer in the corporate banking department of Nordea Bank Finland Plc Estonia branch, joined the banking and finance team while Tauno became a member of the firm’s dispute resolution practice group.

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HEALTH REFORM: Updated – HHS Publishes Health Insurance Premium Rate Review Final Rule, Amends Rule to Include Policies Sold Through Associations, and Lists States with Effective Rate Review Programs

EBG Introduces Interactive National Rate Review Scorecard

This Client Alert updates and replaces the Implementing Health and Insurance Reform alert issued on August 19, 2011, titled “HHS Publishes Health Insurance Premium Rate Review Final Rule Effective September 1st and List of States with Effective Rate Review Programs.”

On May 23, 2011, the Center for Consumer Information & Insurance Oversight (CCIIO), in the Centers for Medicare & Medicaid Services (CMS) of the United States Department of Health and Human Services (HHS) published its Final Rule implementing Section 2794 of the Public Health Service Act (PHSA). This Section requires HHS to establish a process for the review of “unreasonable” health insurance premium rate increases in the individual and small group markets. The Final Rule[1] remains largely unchanged from the Proposed Rule, with important exceptions.[2] The Final Rule and the key changes are summarized in this Client Alert.

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Immigration Alert: September 2011

DOL Temporarily Suspends Work on Prevailing Wage Determinations Required for PERM Labor Certification Applications

H-1B Nonimmigrant Classification Is Still Open for Fiscal Year 2012

Important Developments in H-1B Areas of “Benching,” Retaliation, “Bona Fide” Terminations, and Prevailing Wages

NLRB Rejects Back Pay Claims of Undocumented Workers

U.S. Supreme Court’s Whiting Decision Spurs State Immigration Legislation and Related Litigation

DOJ Takes New Immigration-Related, Anti-Discrimination Enforcement Actions

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Facebook Tutorials – Creating a Profile Part I

Now we are on to a new set of tutorials – Facebook!

You may be wondering why I would choose Facebook as the next social media tool to delve into – isn’t that for kids?

No!

Also, during our LinkedIn tutorial, you may remember that I posed a question in LinkedIn’s Answers feature to illustrate how to do it – and people answered.  My question was whether Facebook or Twitter was more valuable for lawyers.  Of course, the answer is – it depends.  But overwhelmingly, the responses of the group were “Facebook.”  So Facebook it is! 

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Practical Reminder: If You Want to Be Able to Toll Your Restrictive Covenants, It’s Best to Say So

Restrictive covenant agreements often contain “tolling” provisions which extend the duration of the covenants by the time of any violation. Sometimes, employers do not include tolling provisions in their restrictive covenant agreements, but nevertheless subsequently request that a court use its discretion to extend the duration of those covenants by the time of a violation anyways. A recent opinion from the United States Court of Appeals for the First Circuit highlights the danger in not including a tolling provision in a restrictive covenant agreement.

In EMC Corporation v. Arturi, __ F.3d __ (1st Cir. Aug. 26, 2011), EMC requested a preliminary injunction prohibiting its former employee from using its confidential information, from competing with EMC, and from soliciting EMC customers. The trial court issued a preliminary injunction prohibiting the disclosure of confidential information. However, the trial court refused to issue an injunction prohibiting the former employee from competing or soliciting EMC’s customers because the one-year time periods in those restrictive covenants had already elapsed and there was no tolling provision to extend them. On appeal, the First Circuit affirmed the trial court’s refusal to extend the non-compete and non-solicit provisions absent a tolling provision. The court explained that under the governing Massachusetts law, “when the period of restraint has expired, even when the delay was substantially caused by the time consumed in legal appeals, specific relief is inappropriate and the injured party is left to his damages remedy.” The First Circuit also specifically pointed out that “EMC could have contracted…for tolling the term of the restriction during litigation, or for a period of restriction to commence upon preliminary finding of breach. But it did not.”

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Raymond J. Werner profiled in Smart Business article on law firm culture

Arnstein & Lehr Managing Partner Raymond J. Werner

Raymond J. Werner

Arnstein & Lehr Managing Partner Raymond J. Werner was interviewed for an article that recently appeared in Smart Business, a management journal providing insight, advice and strategy for C-level executives of fast-growth, middle-market and large companies. The article is entitled “Ray Werner avoids disagreements at firm by sticking to the facts.” In it he discusses his strategies for resolving conflict. To read the article, please click here.

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