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

North Carolina Business Court Holds Pleading Stage Too Early to Dismiss Broad Non-compete

On May 7, 2015, Judge Gregory McGuire of the North Carolina Business Court denied defendants’ motion to dismiss a claim that a physician’s assistant breached non-competition and non-solicitation provisions in her employment...more

Tom Brady, Deflategate, and Florida Non-Competes

Free trade, in theory, increases competition. Competition forces innovation, higher productivity, better quality, lower prices or some combination of these elements to allow the marketplace to provide suitable options for...more

The Multi-State Non-Compete Agreement “Drilled Down”

Our February article addressed the options available to the multi-state employer attempting to design its non-compete agreements within the “tangled mess” of the various state laws applicable to agreements for employees who...more

State Legislatures Reconsider Noncompetes

With companies’ use of noncompetes on the rise, whether to ban, restrict or encourage noncompetes has garnered attention from legislatures across the country. Legislatures in four states – Massachusetts, Michigan, Washington...more

Things to Think About Before You Leave to Work for a Competitor

An employee who leaves a company to work for a competitor can run into a hornet’s nest of legal problems.  The latest example of this classic fact pattern involves William Georgelis, a sales manager for building material...more

Class Action Attempt to Void Jimmy John's Non-Competes Goes Stale

Sandwich chain Jimmy John's has been in the news lately because of non-compete agreements that employees of its franchisees sign. This is not necessarily good news for Jimmy John's, but it does underscore some interesting...more

Hospitalitas Newsletter - Spring 2015

In This Issue: - The Next Hot Trend in Economic Development: Craft Beer - Class Action Attempt to Void Jimmy John’s Non-Competes Goes Stale - Use of Customer Survey Data Upheld in Hotel Franchise...more

Employer Can Proceed With Breach Of Noncompete And Trade Secrets Claims Against Former Employee Who Refused To Relinquish Control...

Recently, an Illinois federal district court denied in part an employee’s motion to dismiss various claims asserted by his former employer, allowing the employer to proceed with its claims for breach of a non-compete...more

Court, Applying Pennsylvania And California Law, Declines To Enjoin Alleged Violation Of Worldwide Non-Compete

A non-competition covenant prohibited employees of Adhesives Research (AR), a company based in Pennsylvania, from performing services for a competitor of AR anywhere in the world for two years after termination. Newsom, AR’s...more

Argentina's new Franchise Law: unusual and unclear

As the effective date of Argentina’s new Franchise Law approaches, businesses are beginning to comprehend its unexpected parameters. For years, franchises operating in Argentina were governed only by contract...more

Meritas Capability Webinar - California’s Prohibition Against Non-Compete Agreements (B&P Code § 16600), the Protection of Trade... [Video]

Many attorneys representing company’s in or from other states (freedom of contract jurisdictions) believe a well drafted covenant not to compete can be an employer’s best defense against competition from former employees....more

Ninth Circuit Reviews Enforceability of Waiver of Right to Reemployment

Does California Business and Professions Code § 16600 prohibit employees from waiving their right to reemployment with prior employers? The answer is maybe, according to the Ninth Circuit’s recent decision in Golden v. Calif....more

"Insights Conversations: Joint Venture Agreements"

Joint venture (JV) arrangements offer parties a number of benefits and opportunities they wouldn’t be able to realize on their own. However, because a poorly drafted JV agreement can present significant pitfalls, careful...more

Noncompete Law in France—Payment of a Noncompete is Required During Garden Leave

In France, a valid noncompete clause in an employment contract must provide for the payment of financial compensation to the departing employee, as long as the employee remains bound by and complies with the clause’s terms...more

Fenwick Employment Brief - April 2015

Ninth Circuit Reviews Enforceability of Waiver of Right to Reemployment - Does California Business and Professions Code § 16600 prohibit employees from waiving their right to reemployment with prior employers? The...more

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

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