LITIGATION OVER NONCOMPETE PACTS ON RISE

As many executives are taking extra measures to protect their compa- nies during the economic down- turn, employment attorneys are seeing an increase in litigation around trade se- crets. Specifically, employers are being more aggressive

"In these economic times, companies are taking precautions to protect their business," says Marguerite Walsh, a shareholder at employment law firm Littler Mendelson. "These lawsuits serve two purposes: One is to salvage a situation, but also it's to send a message to people at the company."

In the past, the majority of litigation around noncompetes seen by Walsh has involved key executives or salespeople at the firms. But now, Walsh is seeing more litigation involving junior and midlevel employees.

Even in these tough economic times, top-performing employees can be offered positions elsewhere, and companies want to be prepared for that, she says.