When an individual’s employment terminates and that individual goes from being a trusted employee to a competitor, numerous issues can arise regarding actions taken by that individual, prior to leaving the employer, in preparation for his or her new job. Those issues may continue and become more complicated when the individual is subject to notice/garden leave obligations and/or a non-competition agreement for some period(s) of time after his or her final day working for the employer.
A recent decision of the Circuit Court of Cook County, Ill., Chancery Division, in an action titled Citadel Investment Group, LLC v. Teza Technologies, LLC, highlights some of these post-departure issues, which apparently have not yet been explored in detail in New York case law. Familiarity with the Citadel case, and cases from other jurisdictions, discussed below, may assist the New York practitioner in addressing whether an individual’s steps taken during these restricted periods in preparation for competing with his or her former employer are permissible or not.
General Rules in New York
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