Non-Compete Agreements

Non-Compete Agreements are contracts, typically formed in employment or business purchase contexts, where one party agrees to refrain from engaging in a particular line of work or pursuing business within a... more +
Non-Compete Agreements are contracts, typically formed in employment or business purchase contexts, where one party agrees to refrain from engaging in a particular line of work or pursuing business within a certain industry or locale. The purpose of these agreements is to protect employers or business purchasers from competition stemming from former employees or former owners of a business. less -
News & Analysis as of

Competing After Employment (Part 1)

A key employee departs. The employer, worried that confidential information has leaked out of the company, scrambles to respond. After a frenzied period of preparation, the employer starts a lawsuit and seeks an injunction...more

Looking At Those Amazon Non-Competes From A Kentucky Perspective, P.2

In our last post, we began looking at a non-compete agreement Amazon has been imposing on warehouse workers, even temporary workers. We’ve specifically been looking at how the agreements might fare under Kentucky law. ...more

Physician Non-Compete Agreements and Antitrust

Antitrust claims based on employee non-compete agreements generally fail because the plaintiff cannot establish antitrust standing. In the Eleventh Circuit, the test for antitrust standing requires the plaintiff show (1)...more

New Arkansas Law Boldly Embraces Noncompetition Provisions

On April 2, 2015, Arkansas enacted a new law (the Act) that greatly expands the enforceability of noncompete agreements in the state. The Act makes striking changes to Arkansas non-compete law. ...more

New 'Golden Rule' Removes the Peace from Employer Settlement Agreements

Under California Business and Professions Code Section 16600 (“Section 16600”), “every contract by which anyone is restrained from engaging in a lawful profession, trade, or business of any kind is to that extent void.”...more

Protecting Trade Secrets Insufficient to Enforce Covenant Not to Compete in Any Capacity Worldwide - NanoMech, Inc. v. Suresh

Addressing the enforceability of a non-compete agreement to protect trade secrets, the U.S. Court of Appeals for the Eighth Circuit upheld a ruling finding that a non-compete agreement which prevented the employee from...more

Navigating Non-Competes When a Worldwide Presence Is the New Norm

Businesses that compete globally are once again reminded of the need to avoid overreaching when requiring employees to sign non-compete agreements. Earlier this year, the Court of Appeals for the Eighth Circuit affirmed a...more

Employer's "No Re-Hire" Provision May Violate California's Non-Compete Laws

Pretty much everyone knows that California courts do not favor covenants not to compete. We even have our own state laws that address this very issue (Business & Professions Code section 16600). But what about provisions in...more

Looking At Those Amazon Non-Competes From A Kentucky Perspective

We’ve been talking about non-compete agreements on this blog, first focusing on the various factors judges consider when evaluating the legality of such agreements and then looking at the non-competes to which Amazon.com...more

2015 Employment Law Issues Tournament: Final Four Results and Recap

“There’s a tradition in tournament play – not to talk about the next step until you’ve climbed the one in front of you. I’m sure writing a tournament championship blog entry is beyond your wildest dreams, so let’s just keep...more

Should These Non-Compete Agreements Be Enforced?

In our last couple posts, we’ve been speaking about non-compete agreements and the way they are evaluated by courts in the state of Kentucky. Given all that we have discussed, it is interesting to look at the way a massive...more

Non-Compete Nonsense: Louisiana Enforces Non-Competes Against Cardiologists (but not Car Dealers)

A recent case out of the Louisiana Court of Appeal reminds us that some states will enforce physician non-compete agreements, even in the absence of a clear protectable interest and even where such enforcement threatens harm...more

What factors bear upon the enforceability of noncompete agreements? P.2

In our last post, we began speaking about the factors that are taken into consideration when determining the enforceability of noncompete agreements. We’ve already mentioned that the fundamental consideration is whether the...more

2015 Employment Law Issues Tournament: Sweet Sixteen Results and Recaps

The Sweet Sixteen has come and gone and it was glorious. Streamed live over our new Apple Watches, 16 employment law issues battled it out for the right to move onto the Elite Eight, which will be held next week at Sixth...more

Labor & Employment E-Note - March 2015

In This E-Note: - Expanding Eligibility: Is Your FMLA Policy Ripe for Misinterpretation? - New Year’s Resolution Continued: The Multi-State Non-Compete Agreement - The Corporate Board: The False Claims...more

What Factors Bear Upon The Enforceability Of Noncompete Agreements?

For businesses, non-compete agreements can be an important way to protect their interests in work product, resources and other knowledge to which employees become privy in the course of their employment....more

Restrictive Covenants: The Employee Choice Doctrine Explained … Yet Again

The “employee choice” doctrine is one of those employment terms that is as misunderstood as “right to work,” “employment at will” and my personal favorite, “labor lawyer”. But a recent New York Federal court in IBM v Smadi,...more

Track More Than Case Law When Drafting a Noncompete Covenant

No doubt, ensuring that any agreement is consistent with judicial precedent is critical if you want to enforce that agreement at some point in the future. Nevertheless, merely incorporating precedential concepts or language...more

Avoiding Litigation: Using Non-Compete Agreements to Protect Your Business Assets

In this presentation: - Enforceability of non-compete agreements and other restrictive covenants - Why using a form agreement is a bad idea - Using restrictive covenants as a proper shield -...more

Are Restrictive Covenants in Sale Agreements Enforceable?

The Supreme Court of Canada recently addressed the issue of the enforceability of restrictive covenants where the purchaser of a business offered employment to the business’s previous owners (Payette v Guay Inc. 2013 SCC 45)....more

Illinois Restrictive Covenants: The “Gray” Bright Line Regarding Sufficient Consideration

Illinois non-compete law continues to wend a circuitous path through the employment landscape, making it occasionally difficult for employers and employees alike to predict outcomes in these cases....more

Restrictive Covenants in the Construction Industry: An Often Overlooked and Underutilized Source of Protection

Restrictive covenants come in many forms; they can be stand-alone agreements, such as a confidentiality agreement, or they can be included in various types of contracts, such as noncompete or nonsolicitation provisions in...more

SEC Continues to Investigate Contractual Impediments to Whistleblower Complaints

As Rachel Louise Ensign reported earlier this week in the Wall Street Journal (subscription required), the Securities Exchange Commission (“SEC”) continues to probe obstacles to corporate employees blowing the whistle. This...more

This ‘n’ that from the world of the workplace

Religious accommodation, the Oscars, non-competes, social media, Brian Williams versus Bill O’Reilly, workplace violence, and inspirational employees — we have it all today! Here are some links about recent news and court...more

Brokers Switching Firms: The Protocol and Recent Developments

In August 2004, Merrill Lynch, Citigroup, and UBS entered a pact not to sue one another over client relationships in their wealth management businesses. This pact was known in the industry as the Protocol for Broker...more

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