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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 -

Continued Employment Isn’t Always Sufficient – Minnesota Requires Additional Consideration For Non-Compete With Current Employee

by Jackson Lewis P.C. on

The Minnesota federal district court recently refused to enforce a non-compete agreement, in part, because the employer failed to establish that the agreement was supported by valuable consideration. The decision, issued on...more

Seventh Circuit Court of Appeals – Super Human Resource Department?

by Ruder Ware on

The Seventh Circuit Court of Appeals (which addresses federal court cases brought in Wisconsin) has stated in the past that it does not intend to be a “super human resource department” for employers. Recent court decisions...more

I-16 – Kneeling, Indefinite Leave, DC Updates, Non-Compete Consideration, and Pretty as a Protected Class

by Cozen O'Connor on

This episode discusses kneeling in the NFL/workplace, indefinite leave entitlement, and sufficient consideration for non-competes, provides an update from DC on OT exemptions and class action waivers, and questions whether...more

Massachusetts Legislature Schedules Hearing on Non-Compete Reform

by Seyfarth Shaw LLP on

The Massachusetts legislature is back at it again. Under new leadership, the Joint Committee on Labor & Workforce Development recently scheduled a hearing for October 31, 2017 on the non-compete reform bills proposed in...more

European Labour & Employment Update - September 2017

by Jones Day on

In this edition, we report from around Europe on some interesting case law developments that affect the way employers manage their employees. The range of issues covered shows that, despite the breadth of directives issued by...more

Seventh Circuit Rules that Company’s Distributor Is Not its Competitor

by Dorsey & Whitney LLP on

The sale of a business virtually always involves a promise by the seller not to engage in competition with the purchaser, within certain time and geographic parameters. Frequently, such agreements contain robust prohibitions...more

Departing Employees: Ensuring Protection of Trade Secrets and Intellectual Property

“Knowledge is power” goes the old adage. Well, that is certainly true in the world of business where secret processes, confidential designs, and even a good customer list can give a business a vital commercial edge over its...more

Connecticut Court Declines to Apply Physician Non-Compete Statute Retroactively

A Connecticut superior court recently held that Connecticut’s statute limiting the noncompetition agreements by which Connecticut physicians may be bound, may not be applied retroactively....more

North Carolina Business Court Addresses Consideration Requirement for Covenant Not to Compete

by Nexsen Pruet, PLLC on

In American Air Filter Co., Inc. v. Price, No. 16 CvS 13610, 2017 WL 2797794 (N.C. Super. Ct. June 26, 2017), the plaintiff’s former employee signed an employment agreement that renewed automatically each year. The agreement...more

Refer to This: Referral Sources Can Be a Legitimate Business Interest for Non-Compete Purposes in Florida

Can relationships with referral sources give rise to a legitimate business interest sufficient to enforce a non-compete? The answer is yes, at least in Florida....more

Referral Sources Can Be A Protectable Interest Under Florida Law

by Jackson Lewis P.C. on

In Florida, non-competition and other restrictive covenant agreements are enforceable to the extent they are tailored to protect a legitimate business interest. On September 14, 2017, the Florida Supreme Court held that a...more

Client Alert: Supreme Court Settles Debate in Florida in Favor of Protection of Referral Sources Under Non-Compete Statute at...

On September 14, 2017, the Florida Supreme Court issued a unanimous opinion in consolidated cases White v. Mederi Caretenders Visiting Services of Southeast Florida, LLC, SC Appeal No. SC 16-28 and Americare Home Therapy,...more

Non-Compete News - Florida Supreme Court Holds Referral Sources Are Legitimate Business Interests Under Florida's Non-Compete...

by FordHarrison on

On Thursday, September 14, 2017, the Florida Supreme Court held that referral sources can be valid legitimate business interests under Florida’s non-compete statute, potentially warranting enforcement of a restrictive...more

Florida Supreme Court: Referral Sources Can Be Protected By A Non-Compete

Big news for home health agencies and others whose business comes from referral sources: the Florida Supreme Court just held that referral sources are the kind of protectable business interest that will support a non-compete...more

Kansas Decision Highlights The Perils Of Overreach In Restrictive Covenant Agreements

by Jackson Lewis P.C. on

In a recent decision examining Kansas non-compete law, the United States District Court for the District of Kansas partially granted a company’s motion to enjoin its former employee’s violations of the non-compete and...more

Blog: Non-Competes for California Employees in M&A Deals: Don’t Fudge It

by Cooley LLP on

Post-employment non-compete covenants are generally invalid in California, with certain limited but important exceptions like when a business or associated goodwill is sold and the buyer – as part of the deal – wants to...more

Swimming Pool Company’s Non-Compete Claim Takes a Dive

by Zuckerman Spaeder LLP on

When a company believes that an employee has breached a non-compete agreement by going to work for a competitor, one remedy it can seek is a preliminary injunction. A preliminary injunction is meant to preserve the status quo...more

Ineligible Coach On The Field – Assessing Whether Restrictions Are Enforceable In Contracts

With the start of college football season around the corner, attention turns to off-season shake ups in coaching staffs. One controversial change involved defensive coordinator Robert H. Shoop. Shoop traded in his blue and...more

Non-compete post-termination restrictions: de minimis carve-out - Tillman v. Egon Zehnder Limited

by Dentons on

We considered the case of Tillman in our last edition of the newsletter but it's back again. Ms Tillman has successfully appealed to the Court of Appeal, which has made a finding that her non-compete restriction was...more

Drafting Matters: When Non-Competes And Renewal Provisions Collide

by Fox Rothschild LLP on

If a franchisor waives the non-compete provision in its current franchise agreement, can it enforce a non-compete when the franchise agreement is renewed? According to a recent decision by the 9th Circuit Court of Appeals,...more

Protecting Business Interests: Don't Get Stung by an Overly Wide Non-Compete

by Faegre Baker Daniels on

In Tillman v Egon Zehnder Ltd [2017] EWCA Civ 1054 the Court of Appeal examined the enforceability of a non-compete covenant. Ms Tillman was the global co-head of financial services at Egon Zehnder Ltd (EZ), a professional...more

FRANCHISOR 101: Selective Enforcement of Franchise Agreement Provisions

by Lewitt Hackman on

A franchisor's ability to set renewal terms can bind franchisees to terms in a later franchise agreement before the renewal agreement even exists. In a recent case, a franchisor could enforce a hypothetical non-compete...more

New York Appellate Decision Questions Enforceability of Employee Non-Compete Agreements, Demonstrates Need for Employers to...

by Wilson Elser on

For more than a century, New York courts have been enforcing employee non-compete agreements, despite expressing their disfavor of these agreements and related enforcement challenges. In New York, as in many states,...more

Who Poked Whom First: Does a Friend Request or Social Media Invite Count as Solicitation?

by Fisher Phillips on

When Gregory Gelineau quit his job at an Illinois-based insurance company to work for a competitor, he sent LinkedIn invitations to a group of his former co-workers. In response, Gelineau’s former company sued him. The...more

The Questionable Non-Compete: How to Hire Someone but Avoid a Tortious Interference Claim

by Nilan Johnson Lewis PA on

The Scenario - Your company has a great applicant for a job opening, Jane, but you learn during the interview process that Jane signed a non-compete agreement with her current employer. You can quickly spot some reasons...more

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