Non-Compete Agreements

Gavel to Gavel: Agreements enforceable

by Sharolyn Whiting-Ralston | McAfee & Taft on 5/23/2013

For years, Oklahoma employers have required employees to sign agreements stating they will not solicit the company’s employees if they go to work for another employer. In April, Gov. Mary Fallin signed legislation confirming...more

New Jersey Bill Could Put An End To The Use Of Non-Compete Agreements As We Know It

by Kali Wellington-James | Pepper Hamilton LLP on 5/22/2013

Last month, the New Jersey Legislature introduced a bill that could drastically limit the enforceability of non-compete, non-solicitation, and non-disclosure agreements that New Jersey employers routinely enter into with...more

Wielding A Scalpel, Court Grants Injunction In Favor Of Surgical Instrument Manufacturer

by Gary Mouw | Varnum LLP on 5/20/2013

Headquartered in Kalamazoo, Michigan, Stryker Corporation is a manufacturer of surgical instruments, including image guided "navigation software and hardware" that enables surgeons to precisely insert implants or perform...more

Proposed Non-Compete Legislation in Connecticut Follows Legislative Trend

by Kenneth Vanko | Clingen Callow & McLean, LLC on 5/16/2013

So far, 2013 has been active for proposed non-compete legislation. At the beginning of any calendar year, it's not surprising to see a number of bills introduced in state assemblies or legislatures - many of which have...more

You Can't Reverse Blue-Pencil a Non-Compete

by Kenneth Vanko | Clingen Callow & McLean, LLC on 5/14/2013

By now, I hope readers of this blog would be aware that the title of this post simply reinforces the obvious....more

Steps To Consider Before Hiring An Employee from A Competitor To Minimize The Likelihood Of Litigation

by Thomas Dye | Carlton Fields on 5/10/2013

Hiring an employee away from a competitor can be a potential legal minefield. It can lead to significant exposure to lawsuits for causes of action including misappropriation of trade secrets, claims of tortious interference...more

Bill introduced in New Jersey Legislature would invalidate restrictive covenants for individuals collecting unemployment benefits

by Ruth A. Rauls | Saul Ewing LLP on 5/9/2013

Currently pending in the New Jersey State Legislature is a bill that, if passed, would invalidate any covenant, contract or agreement not to compete, not to disclose or not to solicit, entered into by any individual with the...more

Supreme Court of Georgia Rejects Independent Claim for "Inevitable Disclosure"

by Kenneth Vanko | Clingen Callow & McLean, LLC on 5/8/2013

The "inevitable disclosure" doctrine is one of the most discussed, controversial topics in unfair competition law. The commentary among academics and bloggers reminds me of the ongoing debate over the proper scope of the...more

Non-Party Employer Made to Pay Costs in Restraint Litigation

by Bryan Belling, Matthew Parker | K&L Gates LLP on 5/8/2013

On 1 May 2013, the Supreme Court of New South Wales handed down judgment in HRX Pty Ltd v Scott [2013] NSWSC 451 (HRX v Scott). In doing so, the Court sent a clear message to employers about the risks associated with...more

Chinese Supreme Court Guidelines Make It Easier for Employers to Enforce Non-Compete Covenants

by Ron Cai, Victoria Ding | Davis Wright Tremaine LLP on 5/6/2013

On Jan. 18, 2013, the Supreme People’s Court of China promulgated Judicial Interpretation IV on Several Issues Concerning the Application of Law in Hearing Labor Dispute (the “Interpretation”). The Interpretation went into...more

Bill Introduced in NJ Assembly to Limit Enforcement of Non-Compete and Non-Solicitation Agreements

by Wendy Klein | Cole Schotz on 4/26/2013

A bill introduced in the New Jersey Legislature on April 4, 2013, Assembly Bill 3970, seeks to prohibit enforcement of agreements restricting departing employees from competing, disclosing confidential information, or...more

NJ Lawmakers: Invalidating Restrictive Covenants Will Assist the Unemployed

by Laura A. Kowal, Steven Suflas | Ballard Spahr LLP on 4/26/2013

Citing the state’s jobless rate, three New Jersey state assemblymen are challenging the longstanding employer practice of restricting the post-employment activities of employees who are terminated or resign. On April 4, 2013,...more

Protecting Your Intellectual Property

by Ned Sackman | Bernstein Shur on 4/25/2013

In This Presentation, Ned Sackman, an attorney and member of Bernstein Shur’s Labor and Employment Practice Group, explores ways companies can secure intellectual property using the following tools: • Non-disclosure,...more

Florida Court Reverses Preliminary Injunction On Restrictive Covenant

by Peter C. Vilmos | Burr & Forman on 4/24/2013

If you have followed this blog, then you likely already know that restrictive covenants are legal and enforceable in Florida. You should also know that – although enforceable – restrictive covenants are strictly construed...more

Navigating through the Challenging German Employment Law Framework for Japanese Companies Doing Business in Germany

by Lutz Hoheisel | Orrick, Herrington & Sutcliffe LLP on 4/23/2013

In This Presentation: 1. Employment law in Germany – General facts 2. The Employee 3. Overview on German social security system 4. Dismissal of employees 5. Managerial authority 6. Modification of...more

Employers Just Get No Satisfaction: NH Enacts Law Restricting Use Of Non-Compete Agreements

by Downs Rachlin Martin PLLC on 4/23/2013

Employers in New Hampshire now must comply with further restrictions on their ability to enforce non-compete and anti-piracy agreements. Venturing further into the already murky area of the enforceability of such agreements,...more

New Jersey Non-Compete Bill Follows Maryland Lead - And Then Takes It a Step Further

by Kenneth Vanko | Clingen Callow & McLean, LLC on 4/23/2013

In January, I discussed Maryland's proposed Senate Bill 51, which (if passed) would ban certain non-compete agreements if an employee was deemed eligible to receive unemployment benefits....more

Settlements (Part 3 of 3): Dealing With a Defendant's Bankruptcy in Non-Compete Litigation

by Kenneth Vanko | Clingen Callow & McLean, LLC on 4/17/2013

This is largely a plaintiff-centric column, offering some practical points to consider when assessing the risk of bankruptcy in connection with non-compete (or other competition) litigation. Though many non-compete suits...more

Business News Digest – April 2013

by Michael Baader, Jamie Barnett, Andrew Bigart, Amanda C. Blunt, Edward Boyle, Gregory Braker, Robert Burton, Emilio W. Cividanes, John F. Cooney, Krista Coons, Ashley Craig, Daniel Danello, more +Robert P. Davis, Paul Debolt, Douglas Emhoff, Lisa Jose Fales, Matthew R. Farley, Kathryn Floyd, Thomas Gilbertsen, Nancy Grunberg, Michael Hartmere, J. Scott Hommer, Stuart P. Ingis, Jay Johnson, Jonathan King, Mitchell Kolkin, George Kostolampros, Dismas Locaria, Elizabeth Lowe, Melissa McLaughlin, Lindsay B. Meyer, Parker B. Morrill, Jonathan L. Pompan, Hillary Profita, Matthew R. Rabinowitz, Megan Roberts-Satinsky, Anthony Rosso, Martin Saad, Sejal Shah, Raymond Shepherd, Eric R. Smith, Robert Smith, Margaret Strand, Joeann Walker, Ariel S. Wolf, Jason Wool, Brian Zimmet | Venable LLP on 4/15/2013

In this issue: - Finders May Pose Risk in Private Capital Raising - NIST Holds First Workshop on Executive Order Cybersecurity Framework - NIST Issues Request for Information, Begins Developing...more

Settlements (Part 2 of 3): 5 Reasons Non-Compete Cases Should (and Do) Settle

by Kenneth Vanko | Clingen Callow & McLean, LLC on 4/12/2013

On Monday, I offered several reasons why non-compete cases don't settle. Today I flip this concept around. It is true most non-compete cases do settle, a reflection that business cases get resolved for pure economic...more

Think Your Company's Confidential Information Is Safe? Think Again!

by Christopher Duke | Akerman Senterfitt on 4/10/2013

Password encrypted computers, locked file drawers, swipe cards allowing for restricted access. These are all measures taken by businesses to protect their confidential business information and trade secrets. While these steps...more

Settlements (Part 1 of 3): 5 Reasons Non-Compete Cases Shouldn't (and Don't) Settle

by Kenneth Vanko | Clingen Callow & McLean, LLC on 4/9/2013

Every judge, lawyer, and litigant is probably familiar with the maxim that most civil cases settle. That's undoubtedly true. But some classes of suits are better positioned to settle than others. In non-compete and other...more

FTC Voids Confidentiality and Non-Compete Provisions in Non-Reportable Transaction and Requires Notification of All Future...

by Farrah Short, Bruce D. Sokler | Mintz Levin - Antitrust on 4/8/2013

Merger agreements often contain ancillary provisions that seem acceptable to the parties in the context of what they are obtaining from the transaction—and those provisions often do not get a hard look by antitrust legal...more

Practice Tip: Don't Call Your Liquidated Damages Clause a "Penalty" In the Contract

by Kenneth Vanko | Clingen Callow & McLean, LLC on 4/3/2013

Readers of this blog know that I am an advocate of using liquidated damages clauses in non-compete agreements. Though not for every situation, they can help avoid the knotty problem of proving lost profits damages through...more

Plaintiffs' Attorneys, Rest Easy: Cease and Desist Letters Likely Aren't Defamatory

by Kenneth Vanko | Clingen Callow & McLean, LLC on 3/26/2013

Non-compete disputes often follow a similar pattern. And part of that pattern involves the dreaded "cease-and-desist" letter. These letters are precursors to litigation, and they can be either effective or damaging,...more

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