TekSystems - A Traditional Resolution

Posted on May 13, 2011 by Rob Radcliff

Last year we profiled the TEKSystems v. Hammernik case that was filed in the United States District Court for the District of Minnesota.  The case was significant because it was one of the first where a Plaintiff seeking a temporary injunction used communications from social media (LinkedIn) as evidence of a non-solicit violation. 

Ultimately, the case was resolved through entry of a stipulated permanent injunction.  This required the Defendants to among other things: (1) search their computers for TEKSystems documents and information and return or destroy the information; (2) submit their computers to forensic inspection; and (3) not contact, solicit or accept business from any persons identified in an agreed to customer list.

Though the lawsuit was novel in terms of social media evidence it’s resolution was not.  Parties frequently agree to a set of customers that are essentially “hands off” in order to resolve these type of disputes.  

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Social Media Signals of an Employee Departure

Posted on April 21, 2011 by Rob Radcliff

                                           

A few social media signs that an employee is leaving:

  1. The Obvious -  A Linked-In or Facebook profile update that includes the name of a person's new employer;
  2. The Obvious - An actual description of the new employer or business in a social media profile;
  3. The Obvious - A status update where the employee announces their departure;
  4. The Obvious - A posted link to the new business or venture;
  5. The Obvious - Outright solicitations from the former employee to the employer's customers;
  6. The Obvious - General solicitations for business or leads;
  7. Subtle - A request for a reference for a website designer or IT help;
  8. Subtle - A request for a reference for someone to put together business cards, stationary, etc. - basically anything someone would need to start up a business;
  9. Subtle - A request for legal advice regarding business entities (the new business will need a corporate form; and
  10. Though not a necessarily social media related, a request from the employee for their employment contract. 

The interesting byproduct of social media sites is that many employees now maintain their business contacts on line.  A departing employee will alert their contacts that they are leaving.  The question then becomes what can or will the employer do to keep their clients/customers?

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The LinkedIn Lawsuit - Follow Up

Posted on July 27, 2010 by Rob Radcliff

                                              

A few months ago I profiled a non-compete/non-solicit lawsuit where the Plaintiff employer used LinkedIn communications as evidence to support their claims against several former employee recruiters.  The case was covered in a number of media outlets and blogs.

In the interim the Defendants answered the lawsuit and filed a counterclaim.  Here's what the counterclaim alleged:

  • Representatives of the employer told one employee that he could continue to work in the recruiting industry as long as he didn't call on the Plaintiff's customers;
  • The non-compete agreements are unenforceable; and
  • The Plaintiff is tortiously interfering with their new employment agreements.

In their answer, the Defendants allege that what the Plaintiff claims is confidential customer information was publicly disclosed through social media and is no longer protected:

Plaintiff’s claims that relate in anyway to customer and/or client information fail to the extent that Plaintiff, or its employees, have thrust said information into the public domain through the use of sites such as, LinkedIn and Facebook, and/or to
the extent Plaintiff encouraged its employees to place said information into the public domain.

The case is set for trial in August 2011.  We'll keep you posted on any further developments.

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