Employment Contract Non-Compete Agreements

News & Analysis as of

Pennsylvania Supreme Court Rules That Continued Employment Is Not Sufficient Consideration for Non-Competes Entered Into After the...

In a landmark ruling of first impression, the Pennsylvania Supreme Court recently held that an employer’s non-competition covenant, which included the employee’s pledge not to challenge the covenant for inadequate...more

Do Non-Competes Really Stifle Tech Innovation?

As has been well-chronicled in this blog, Massachusetts and many other states (and even the federal government) have been grappling with proposed legislation that would ban or severely limit non-competes in employment...more

PA Supreme Court Addresses Consideration Required To Enforce Restrictive Covenants

In a highly anticipated decision, the Pennsylvania Supreme Court ruled earlier this week that “new and valuable” consideration must be conveyed to an employee entering into an agreement containing a restrictive covenant after...more

Non-Competes Must Be Supported By Consideration in Pennsylvania: No Exception Based On Employee’s Agreement To Be Legally Bound

The Pennsylvania Supreme Court has ruled that a non-compete entered after the onset of employment without additional consideration is not enforceable even if the employee expressly agreed “to be legally bound.” See Socko v...more

Pennsylvania Supreme Court Finally Kills Hope That Magic Words Can Substitute for Valuable Consideration in Exchange for...

To most practitioners, Pennsylvania law governing the consideration required for an employment agreement containing a restrictive covenant (e.g., a non-competition clause or non-solicitation clause) has been simple: (1) if...more

Trend In The Courts: It’s Getting Harder To Obtain Preliminary Injunctions In Restrictive Covenant Cases

In recent weeks, courts almost routinely have been denying preliminary injunctive relief in cases alleging violation of non-compete and similar employment agreements. Three examples: Burleigh v. Center Point Contractors,...more

Distinguishing Between Types Of Non-Compete Provisions In Rhode Island

Businesses often attempt to protect their valuable, non-public information – for example, confidential business and marketing plans developed through investment and research – from being used by their competitors by requiring...more

The Multi-State Non-Compete Agreement – Part 3

Our most recent article in this series (May, 2015) addressed the first step of the analysis necessary for the multi-state employer’s design and implementation of a manageable, limited number of noncompete agreements compliant...more

The Chicago Cubs, Errors, and Arbitration of Florida Non-Compete Agreements

Some clients prefer to resolve disputes in arbitration. In theory, an arbitration proceeding can more quickly and — in some instances — more cost effectively resolve disputes. However because most arbitration clauses call for...more

[Webinar] Protecting Company Relationships and Information Upon an Employee Departure - Oct. 14th, 1:00pm EST

Learn how your company can prepare to act quickly and strategically to protect important relationships, information and trade secrets at the time that a key employee leaves. This session will review the latest developments in...more

Essential Protection: Restrictive Covenants of Your Employees

No one knows your company better than your employees. And while great employees can be your most valuable asset, disloyal employees can use their insider information to harm or compete against you. You need protection, and an...more

Eleventh Circuit Decision Weakens Injunctive Enforcement of Restrictive Covenants

Last month, in Transunion Risk and Alt. Data Sols., Inc., v. MacLachlan, the Eleventh Circuit held that the district court should have considered hardship to an employee when it enforced a restrictive covenant in an...more

Technology Blunder Lands Ex-Employee In Court

The Winston-Salem Journal (my hometown paper – yay!) reports that a company is suing a former employee in the North Carolina Business Court for breach of his confidentiality and non-compete agreements.* *The article...more

At Will? What’s That?

Did you know that employees in most countries outside the United States have a contractual right to continued employment, whether or not they have written contract? If an employer does not provide an employee with a written...more

Hidden Pitfalls of Old Non-Compete Provisions

Companies and employers around the country seek to protect their intellectual property by, among other things, using non-compete provisions in employment agreements. Generally, these provisions are intended to prevent an...more

New York Court of Appeals Advises Employers to Take Time to Present Restrictive Covenants to New Employees

It is not uncommon for employers to present restrictive covenants, such as non-competition, non-solicitation, or confidentiality agreements, to new employees in a stack of orientation paperwork. A recent case from New York’s...more

Labor law: will employers welcome proposed changes to the Labor Code?

The Ministry of Healthcare and Social Development of the Republic of Kazakhstan developed a new draft Labor Code of the Republic of Kazakhstan. In addition to other novelties, a number of proposed amendments to the labor...more

Hawaii Enacts New Restrictions on Noncompete and Nonsolicitation Agreements for Employees of Technology Businesses

A new Hawaii law prohibits and makes void noncompete and nonsolicit clauses in the employment contracts of “technology business” employees if the contracts are entered into on or after the law’s effective date of July 1,...more

Striking a Balance: Alabama’s Newly-Amended Restrictive Covenant Statute

When Alabama Governor Robert Bentley signed House Bill 352 into law on June 11, 2015, he repealed Alabama’s bare bones restrictive covenant statute and replaced it with a detailed codification of much of Alabama’s restrictive...more

Court Of Chancery Confirms Limitations For Indemnification Claim

This decision confirms that the statute of limitations on a claim for indemnification does not begin to run until the underlying litigation is concluded. Indeed, equitable tolling may also extend the time when a suit may be...more

Effective Carve-Outs to Seek Injunctive Relief from the Court in Arbitration Provisions

Christopher Pike: “That’s a technicality.” Spock: “I am a [lawyer], sir. We embrace technicalities.” Star Trek Into Darkness - Arbitration is no longer the final frontier. Instead, arbitration is often the...more

[Webinar] State Specific Non-Compete Oddities Employers Should Be Aware Of - August 18, 1:00pm Eastern

In Seyfarth's sixth installment of our 2015 Trade Secrets Webinar Series, Seyfarth attorneys will discuss the significant statutory changes to several jurisdictions’ laws regarding trade secrets and restrictive covenants and...more

Tuomey’s Appeal of $237M False Claims Act Judgment Denied by the Fourth Circuit

In This Issue: - Background - Tuomey’s Second Appeal to the Fourth Circuit - The Trial Court’s Grant of a New Trial - Tuomey’s Request for Judgement as a Matter of Law on the Stark Law and FCA...more

Cracks in the Fifield Armor?: New Dissent Marks First Big Challenge to Illinois' Bright-Line Restrictive Covenant Rule

When continued employment is the sole consideration for a post-employment restrictive covenant (such as a noncompetition agreement), the Illinois Supreme Court requires that an employee be continually employed for a...more

Hawaii Bans Non-Compete and Non-Solicit Agreements with Technology Workers

Hawaii joined the small list of states that prohibit certain non-compete agreements with employees. On June 26, 2015, Hawaii’s governor David Ige signed Act 158 which voids any “noncompete clause or a nonsolicit clause...more

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