News & Analysis as of

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

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

New York Court Refuses to Enforce Agreement's Covenant Not to Compete Where Employer Breached the Agreement First

The right to enforce a covenant not to compete may be lost when the employer first violates the terms of the same agreement, says a New York appeals court. In Fewer v. GFI Grp. Inc. et al., 124 A.D.3d 457, 2015 WL 176227...more

Court Of Chancery Rejects Application Of Delaware Law

This is an important decision on choice of law. The Court held that the parties’ choice of Delaware law to govern the terms of a noncompete agreement was unenforceable in the face of contrary public policy of California that...more

2015 Labor and Employment Law Checklist

Each year, LP’s Labor & Employment Practice Group is pleased to provide a short checklist of steps that all companies should consider taking to measure their readiness for the coming year. We hope that you find this 2015...more

A Win for Employers Enforcing Restrictive Covenants in Virginia

The enforceability of a restrictive covenant in an employment agreement, including a non-competition, non-solicitation, or non-disclosure provision, depends greatly on the state in which the covenant is to be enforced. ...more

California Sunshine Warms the Market: A Twist on Customer Non-Solicitation Provisions in the Golden State

Those of you reading our Employee Mobility blog posts are familiar with California’s unique approach to non-compete agreements: they are, except in a few limited circumstances, unenforceable in the Golden State. And that...more

Missouri Court Refuses to Enforce Non-Compete in Staffing Agency Fight Between Kforce and Beacon Hill

A recent case out of the Eastern District of Missouri provides a perfect example of what judges should do when evaluating non-compete agreements: That is to say that judges should conduct a thoughtful analysis that accounts...more

New Year’s Resolutions for Companies Seeking to Protect Their Trade Secrets in 2015

The start of a new year is a perfect opportunity to set lofty goals of self-improvement. While the odds of completing a New Year’s resolution aren’t exactly inspiring (over half are expected to fail within six months) studies...more

Backlash Against Jimmy John’s Non-Compete Agreement Highlights Risks of Overzealous Business Protection Measures

The submarine sandwich franchise Jimmy John’s has come under fire recently following the publication of a broad non-compete agreement that it has allegedly required rank-and-file employees to sign. The non-competition...more

Pa. Supreme Court: Non-Compete Restrictions Need Clarifying

The Pennsylvania Supreme Court has agreed to review Socko v. Mid-Atlantic Systems of CPA, Inc., a case of interest to employers regarding what consideration is necessary to support employee non-compete agreements. The court...more

Court Enforces Five-Year Noncompete Agreement in Connection With Sale of Business

Employers drafting and seeking to enforce noncompete agreements struggle with structuring the temporal and geographic scope of the proposed noncompete covenant. The Texas Supreme Court has wrestled over the last few years to...more

Et tu, Brutus? Yet Another New York Court Offers Guidance on the Do’s and Don’ts (Mostly Don’ts) in Post-Employment Restrictive...

A recent non-compete case out of a New York County court offers employers valuable drafting tips on non-compete and non-solicitation provisions....more

Texas Court Refuses to Apply Texas Choice of Law in Non-Compete Fight Involving Texas Bank

A recurrent theme in non-compete litigation is the overriding importance of choice-of-law. The latest example comes to us from the United States District Court for the Southern District of Texas and pits a Texas choice-of-law...more

The Point Of An Unenforceable Noncompete May Be Very Sharp Indeed

Writing for Mother Jones, Kevin Drum recently asked “What’s the point of an unenforceable noncompete agreement?” He posits two possible answers: First, it’s just boilerplate language they don’t really care about but...more

An Overview of Tennessee Law Regarding Non-Competition Agreements

Often employers invest significant resources in training and developing employees. Prudent employers recognize that, as unfortunate as it may be, employment relationships do not always go as planned. These employers might...more

To Compete or Not to Compete: Is That the Question?

A June 8, 2014 New York Times article highlighted an increasing trend in the areas of antitrust, competition, and employment law: the enforcement of covenants not to compete. As noted in the article, businesses have...more

Court Was Wrong to Re-Write Covenants

In Prophet v Huggett [2014] ECWA Civ 1013, the Court of Appeal has overturned a recent decision of the High Court in which it had re-written a non-compete covenant to give it commercial effect. You may recall that we...more

Having Employees Sign Non-Compete Agreements After They Have Already Started Working Could Be A Big Problem For Some Employers

A non-compete agreement is a vital tool that companies use to protect their confidential and trade secret information and their customer and employee relationships. Employers, of course, want to avoid the trouble of running...more

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

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

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

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

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