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

Oregon Tightens the Screws on Noncompetes: 18 Months Will Soon Be the Maximum Period of Restriction

As we blogged about earlier, courts in most states just plain don’t like employee noncompete agreements. Particularly when it comes to mid- and low-level employees, courts worry that enforcing a noncompete agreement will...more

Alabama Rewrites Its Noncompete Statute

The Alabama legislature recently passed a comprehensive revision of the state’s noncompete statute, and Governor Bentley has signed the act into law. The new statute will become effective January 1, 2016. The new statute does...more

So You Have a 10-Page Single-Spaced Alabama Noncompete Agreement, Now What?

Employees in Alabama, like in many other places, often are required to sign employment agreements, most of which contain future restrictions on certain activities. The menu items for these agreements usually include covenants...more

New LLC Is Not Delivered By Sale Membership Interests

Readers of this blog should be well aware of California’s general antipathy to covenants not to compete. See links below. Other jurisdictions, however, are less averse. Assuming that a covenant not to compete is...more

Hooli Needs New Lawyers on “Silicon Valley”

As is obvious from our many posts on the subject, we here at IP Legal Forum are big fans of the show “Silicon Valley.” That said, its season finale could have used more Jared Dunn (can we give him a spin-off already?), as...more

Alabama’s New Non-Compete Statute: Are You Ready For New Year’s Day?

Those involved in drafting, negotiating, or litigating covenants-not-to-compete in Alabama have long known that Alabama’s statute books seldom provide ready answers on this particular topic. The text of current Alabama Code...more

Labor & Employment E-Note - June 2015

In This Issue: - Debruge and Childs Alabama Law Survey on Employee Privacy Laws Published to Practical Law - "WTF", Under the NLRB, Employers Should "Cut the Crap?" - Tom Brady, Deflategate, and Florida...more

Uncertain Future for Non-Compete Agreements in Massachusetts: Legislators Seek Compromise

Hearing Overview: On June 23rd, the Massachusetts Joint Committee on Labor and Workforce Development met to consider legislation relating to the legality and enforcement of non-compete agreements. The committee...more

There's A Difference Between "Confidential And Proprietary Information" And A Trade Secret

I can't remember the last time that the Business Court granted a motion opposing the designation of a case as a mandatory complex business case. And since the Business Court Modernization Act went into effect in October...more

New York Attorney General Pursues Dental Management Company for Corporate Practice Violation

Attorney General (AG) Eric Schneiderman announced a settlement With Aspen Dental Management (ADM). The Settlement Agreement requires ADM to pay $450,000 in Civil Penalties, after the AG found that the company was engaged in...more

Corporate Divorce: Treat Your Employment Contract Like a Prenup

Once again I observe that while I am not a divorce lawyer, the analogies of divorce law to my employment practice are startling. Two parties meet (the interview), they realize how many things they have in common (the job...more

Non-Competes & Disintermediation (Cutting Out the Middle Man) – A Recent Case from NJ

A recent case out of the District of New Jersey addresses disintermediation as a legitimate business interest in the non-compete context. Disintermediation is just a technical term for cutting out the middle-man. Let’s take...more

May Court Decision Round-Up

Nedschroef Detroit Corp. v. Bemas Ents. LLC, Case No. 14-10095, 2015 WL 2453511 (E.D. Mich. May 22, 2015). U.S. District Judge Linda V. Parker granted summary judgment in favor of plaintiff Nedschroef Detroit Corp...more

Caught Stealing More Than Bases, St. Louis Cardinals Teach Trade Secret Safety to All Employers

The recent hacking attack against the Houston Astros is a wake-up call for all employers: no organization is safe from its adversaries’ attempts to steal proprietary information to gain a leg up in the competition. The...more

Oregon Tightens Restrictions on Noncompetition Agreements

Oregon strictly regulates the use of noncompetition agreements by statute, generally limiting them to (a) exempt employees earning more than the median income for a family of four (approximately $74,000 currently), and (b)...more

For Here or To Go? Senators Introduce Bill to Ban Noncompete Agreements, Increase Mobility For Sandwich Makers and Other Low-Wage...

Congress is getting into the non-compete business.  Citing the use of non-compete agreements by companies such as Jimmy John’s sandwich shops, Senate Democrats recently introduced a bill—called the Mobility and Opportunity...more

Tenth Circuit Affirms Lift Of Arbitration Stay For Failure To Pay Requisite Fees

In late May, the Tenth Circuit Court of Appeals affirmed a district court decision to lift an arbitration stay for Plaintiff Pre-Paid Legal Services, Inc. (“Pre-Paid”) as Defendant Todd Cahill (“Cahill”) failed to pay his...more

[Webinar] How and Why California is Different When it Comes to Trade Secrets and Non-Competes - June 23, 1:00 EDT

Seyfarth attorneys will present the fifth installment in our 2015 Trade Secrets Webinar Series. They will focus on recent legal developments in California trade secret and non-compete law and how it is similar to and diverse...more

Non-Compete That Grants An Employer The Right To Seek Injunctive Relief No Guarantee That Injunction Will Issue

A trial court declined to enter a preliminary injunction in a non-compete covenant case despite a provision in the covenant giving the employer the “right to seek injunctive relief in addition to any other remedy available to...more

Competing After Employment (Part 2)

A few weeks ago, Jawbone, a fitness tracking hardware and software maker, sued its arch-rival Fitbit, alleging that Fitbit lured its employees away to obtain access Jawbone’s confidential information and product plans. How...more

MLB Litigation Brief: 4th Circuit Hostile Work Enviro, Class Action Trends Cause Concern, Low-Wage Non-Competes & More

Survey Says Increasing Number of Class Actions Most Important Litigation Trend: Norton Rose Fulbright recently released its global 2015 Litigation Trends Annual Survey, which compiles litigation trends and data gathered...more

Wholesale Grocery Products Case Raises Questions About How and When to Apply Per Se Rule and Rule of Reason

The Supreme Court recently denied review in In re: Wholesale Grocery Products Antitrust Litigation, an action that came up from the District of Minnesota and the Eighth Circuit. Substantively, the case is a useful reminder...more

Things You Can’t Un-See … Such As Trade Secrets

A federal appeals court has ruled that “features and functions” of software programs are not trade secrets, particularly when those with access are not required to sign confidentiality agreements. This ruling reinforces the...more

Democratic Senators Propose Federal Legislation to Ban Use of Non-Compete Agreements with Low-Wage Employees and to Require...

U.S. Senators Al Franken (D-Minn.) and Chris Murphy (D-Conn.) proposed federal legislation last week to ban the use of non-competes for low-wage employees and require companies to provide advance notice before asking...more

The Sounds of Silence: Non-Compete Reform Efforts Largely Absent in Massachusetts Legislature

Last summer was a busy time for legislators in Massachusetts mulling over non-compete reform. As we reported, several competing bills were in play as the legislative session drew to a close, including a compromise bill that...more

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