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Former Executive Accused of Breaching Non-Compete Agreement by Joining Competitor

COOK COUNTY RECORD

Monday, November 25, 2024

Former Executive Accused of Breaching Non-Compete Agreement by Joining Competitor

Federal Court
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Surge Staffing LLC has taken legal action against a former executive for allegedly breaching her employment agreement and misappropriating confidential information. The complaint was filed by Surge Staffing LLC in the United States District Court for the Northern District of Illinois on July 9, 2024, against Heather O’Brien.

According to the complaint, Surge Staffing LLC is seeking to enforce its rights under an employment agreement with Heather O’Brien, who previously served as their Executive Vice President. Despite explicit prohibitions in her contract, O’Brien has reportedly joined a competitor company, SURESTAFF, LLC. Surge alleges that O’Brien has been or will inevitably be soliciting their customers and employees while also misappropriating confidential and trade secret information from Surge.

Surge Staffing LLC argues that O’Brien’s actions have caused or will cause significant damage to their business relationships and competitive advantage. They claim that O’Brien’s new role at SURESTAFF places her in direct competition with Surge, which violates the non-compete clause of her employment agreement. This clause restricts her from working for any competing staffing agency within a 50-mile radius of any city where Surge operates for two years following her departure.

The plaintiff further contends that O’Brien had access to critical proprietary information during her tenure at Surge. This includes customer lists, pricing models, strategic plans, and other sensitive data stored in their confidential database known as Beyond. Surge asserts that this information gives them a competitive edge in the staffing industry and that its unauthorized use by a competitor would result in severe harm to their operations.

In addition to monetary damages exceeding $75,000, Surge Staffing LLC is seeking injunctive relief to prevent O’Brien from using or disclosing their confidential information. They are also requesting an order to stop her from performing staffing-related services for SURESTAFF within the restricted area and timeframe specified in her contract.

The case highlights the importance of protecting trade secrets and enforcing non-compete agreements in highly competitive industries like staffing services. The outcome could set a precedent for how similar cases are handled in the future.

Representing Surge Staffing LLC are attorneys Sarah K. Dunkley and Christopher R. Parker from Golan Christie Taglia LLP. The case is being overseen by Judge [Name] under Case ID 1:24-cv-05789.

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