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

Business Litigation Reporter -- June 2014

Goodwin Procter’s Business Litigation Reporter provides timely summaries of key cases and other developments within dedicated Business Litigation sessions and related courts throughout the country – courts within which...more

Uncertain Fate of Non-competes in Massachusetts: Senate Passes Compromise; Legislation Heads to Conference Committee Negotiations

On July 1, 2014 the Massachusetts Senate voted for a compromise on employee non-compete agreements, and the Joint Economic and Emerging Technology Committee heard testimony on the same issue. Governor Deval Patrick spurred...more

5 Attributes of a Successful Non-Compete Agreement

Given the rising use of non-competes in all manner of businesses, we asked JD Supra contributors to tell us what's required in a successful agreement between employer and employee. Here is what we heard back....more

Massachusetts Federal Court Refuses to Transform Non-Disclosure Agreement into a Non-Competition Agreement

A recent decision from the Massachusetts federal district court serves as a good reminder to Massachusetts employers that courts are unlikely to view the breach of a non-disclosure/confidentiality agreement as justification...more

Construction E-Note - June 27, 2014

In This Issue: - Mississippi Legislature Expands State’s Lien Law to Protect Subcontractors, Suppliers, and Materialmen - The Alabama Supreme Court Broadens the Definition of “Occurrence” in a General...more

Using Non-Competes When Greater Employee Responsibility = Greater Protectable Interest

Many employers require new hires to sign non-compete agreements and we have advised previously about best practices for employers to refresh their non-compete terms on a regular basis. A recent decision by a Maryland federal...more

UWOA Exception Does Not Apply to Noncompete Agreements in Pennsylvania

The Pennsylvania Superior Court recently reaffirmed Pennsylvania’s longstanding position that employers must provide valuable consideration to employees who enter into noncompete agreements. In a case of first impression, the...more

Massachusetts Employers Prepare for Employment Law Changes

The pending proposals include a ban on noncompete agreements and a boost to the minimum wage. Employers with workers in Massachusetts should closely watch the upcoming close of the Massachusetts legislature’s current...more

Labor & Employment E-Note - June 12, 2014

In This Issue: - Unions Battle with Employers Over Covering ACA Costs - More Types of Companies Requiring Workers to Sign Non-Competes - Employers Cut Back on Benefits, Push Health Costs onto Workers - High...more

Pennsylvania Appellate Court Finds Uniform Written Obligations Act Inapplicable to Covenants Not to Compete

In a case of first impression, the Pennsylvania Superior Court (one of Pennsylvania’s two state appellate courts) recently issued a ruling in Socko v. Mid-Atlantic Systems of CPA, Inc. (“Socko”), 1223 MDA 2013 (May 13, 2014),...more

Federal District Court Rejects Challenges to Employee Non-Solicitation Agreement

As reported in EmployNews, in recent years North Carolina courts have increased the degree of scrutiny used when reviewing employee non-compete agreements, rejecting as overbroad agreements that would have been upheld in the...more

Proposed Ban on Non-Competes in Massachusetts

Proposed legislation introduced by Governor Patrick to eliminate most forms of non-competition agreement in Massachusetts may be enacted before July 31, 2014. This legislation creates significant risks for employers with...more

Federal Court Reminds Trade Secret Owners That the Statute of Limitations Isn't Everything When it Comes to Misappropriation...

Several years after an employee leaves your company, you realize that he or she has been using confidential and proprietary information acquired from your business to compete against you. Your non-compete agreement with the...more

Damages for Breach of a 12-Month Non-Compete Covenant

In Merlin Financial Consultants Ltd v Cooper [2014] EWCH 1196, the High Court awarded damages to an employer where the employee had breached a 12-month non-compete covenant in a business (rather than employment) agreement. ...more

Managing the Risks of a Mobile Workforce

Retiring after 30 years with the same company is rare today. The symbolism of a retirement party and a gold watch will be lost on generations as frequent employee transition between companies becomes the norm. ...more

Restrictive Covenants and the Cross-Border Employer

In most U.S. states employers are free to bind employees with restrictive covenants – which commonly take the form of post-employment restrictions on soliciting clients or employees – as a condition of employment. The wide...more

Pennsylvania Superior Court Rules that Employers Must Provide Additional Consideration to Bind Current Employees to a Non-Compete...

In Socko v. Mid-Atlantic Systems of CPA, Inc., 2014 WL 1898584 (Pa. Super. Ct. 2014), a case of first impression, the Pennsylvania Superior Court ruled that simply reciting, in a non-competition agreement with a current...more

Pa. Superior Court: ‘Valuable Consideration’ Required for Employer Enforcement of Non-Compete Agreement

In a case of first impression, a Pennsylvania appellate court recently held that contractual language satisfying the state’s Uniform Written Obligations Act (UWOA)—that is, a statement that the parties “intend to be legally...more

Ski Manufacturers Hit for Off-Piste Non-Compete

When it comes to the US Federal Trade Commission, healthy competition for ski manufacturers is just as important off the slopes as on. Ski equipment makers, Tecnica Group and Marker Völkl, learned this lesson on Monday when...more

Prepare To Consider Your Former Employees Your New Competition

There’s nothing that gets employers more fired up than a former employee jumping ship to join a competitor. But, in an effort to prevent such future angst, you’ve had your employees sign a non-compete. You’re golden, right?...more

A Case in Point: When and How to Use Non-Compete Agreements for Bank Executives and Key Managers

Consumer and commercial banks have interests that may legitimately be protected by a noncompete agreement. Such banks are in the business of using a sales force, direct mail, telemarketing, branches, the Internet and other...more

Pennsylvania Court Refuses to Enforce Non-Competition Agreement; Holds that Continued Employment Alone is Insufficient...

Most jurisdictions in the United States hold that continued employment constitutes sufficient consideration in exchange for entering into a non-competition agreement. A handful of jurisdictions however – Minnesota, North...more

Employers Must Provide "Valuable Consideration" To Current Employees When Entering A Non-Compete Agreement During Employment

In a case of first impression for the appellate courts of this Commonwealth, the Pennsylvania Superior Court recently ruled in Socko v. Mid-Atlantic Systems of CPA, Inc. that language contained in an employment agreement...more

Dispelling Employment Myths Series – Issue 2: Non-Compete Agreements

Ever play the game telephone? It’s a game in which one person whispers something into the ear of the next person, and that person is supposed to whisper the same thing into the ear of the next person, and so on. When the...more

Pa. Superior Court Reiterates That Employers Have to Provide Additional Consideration When Obtaining Noncompete Agreements with...

The Pennsylvania Superior Court recently ruled in Socko v. Mid-Atlantic Systems of CPA, Inc., that employers cannot enforce noncompete agreements entered into after the employee has already commenced employment, unless the...more

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