Minnesota Federal Court Reinforces Narrow Interpretation of Computer Fraud and Abuse Act (“CFAA”)
In Lube-Tech Liquid Recycling, Inc. v. Lee’s Oil Serv., LLC, Civ. No. 11-2226 (DSD/LIB) (D. Minn. June 3, 2013) (unpublished), the U.S. District Court for the District of Minnesota held that the federal Computer Fraud and Abuse Act (the “CFAA”) does not apply to employees who use authorized access to misappropriate employer information. The scope […]
Modifying Mid-Stream Non-Compete Agreements Under Minnesota Law
It is unclear under Minnesota law whether an employer who modifies an otherwise valid non-compete agreement with an existing employee must provide “independent consideration” to support the changes to the agreement. In National Recruiters, Inc. v. Cashman, 323 NW 2d 736 (Minn. 1982), the Minnesota Supreme Court held that restrictive covenants not ancillary to commencement […]
Minnesota Supreme Court Clarifies Standards for MHRA Sexual Harassment and Aiding and Abetting Claims
In Rasmussen v. Two Harbors Fish Co., Civ. No. A11-2178, 2013 Minn. LEXIS 274 (Minn. May 22, 2013), the Minnesota Supreme Court agreed with the Minnesota Court of Appeals, holding that a person who is both the sole owner of a business and sole harasser cannot aid and abet his or her own discriminatory conduct […]
Craig W. Trepanier Speaks at Minnesota Safety & Health Conference
On May 15, 2013, Craig W. Trepanier spoke about motor carrier liability for trucking accidents and avoiding negligent entrustment claims at the 79th Annual Minnesota Safety & Health Conference. The Minnesota Safety Council organized and hosted the Conference at the Minneapolis Convention Center. Craig’s presentation provided an overview of the theories of liability, including: negligent […]
Recent Amendments to Minnesota Unpaid Wages Laws (Minnesota Statutes Sections 181.13 and 181.14)
The Minnesota Legislature recently amended two important statutes governing unpaid wages for Minnesota employees (Minn. Stat. § 181.13 and Minn. Stat. § 181.14). The amendments are generally favorable to employees and provide clarification on several important aspects. The amendments are effective as of April 30, 2013. The text of the statutes with the amendments can […]
Which Corporate Documents are Shareholders Entitled to Examine?
Shareholders often want access to information about the corporations in which they own shares, especially in the context of closely held or family-owned businesses. In many situations, however, those in control of the corporation do not want to provide minority shareholders with unfettered access to corporate records such as financial statements, tax returns, business plans, […]
Minnesota House Bill Banning Non-Competes Stalls in Committee
Minnesota, like several other states across the country, is considering legislation to ban or severely limit the use of non-compete agreements. As discussed in a previous article, Minnesota House Bill 506: Banning Non-Compete Agreements, a bill was introduced in the Minnesota House of Representatives on February 11, 2013 that would ban non-compete agreements under many […]
Minnesota House Bill 506: Banning Non-Compete Agreements
On February 11, 2013, Representatives Joe Atkins (District 52B) and Alice Hausman (District 66A) introduced Minnesota House Bill 506 (“Bill 506”). If passed, Bill 506 would significantly restrict the legality of non-compete agreements in the State of Minnesota. Presently, although Minnesota courts view non-compete agreements as partial restraints of trade and construe them narrowly, courts […]
ALJ Finds Individual Confidentiality and Non-Disparagement Clauses Violate NLRA Section 7 Rights
The National Labor Relations Board (“NLRB”) is increasingly applying the rights under the National Labor Relations Act (“NLRA”) to individual employment contracts for employees that are covered by the NLRA. Most recently, in Quicken Loans, Inc., No. 28-CA-75857 (Jan. 8, 2013), Administrative Law Judge Joel P. Biblowitz (“Judge Biblowitz”) determined that two provisions contained in […]
It’s Time to Update Your Corporate Minute Book
As 2012 winds down, corporations and limited liability companies should ensure they have documented major transactions occurring during 2012, and have otherwise complied with required and recommended corporate formalities. Failing to do so can jeopardize the “limited liability” protection afforded corporations, leaving shareholders exposed to claims based on corporate activities. Even a closely-held corporation, with […]