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

The High Price Of Trying To Enforce The Unenforceable

Readers of this blog will know that California marches to its own drummer when it comes to the enforceability of covenants not to compete. California Business & Professions Code Section 16600 declares these covenants void...more

No Way Around It: SB 1241 Further Restricts Non-Compete Agreements For California Workers

Companies often seek to protect their trade secrets by requiring employees to sign non-compete agreements. California law invalidates such provisions except in very limited circumstances. See Bus. & Prof. Code §§ 16600 et...more

Employment Law This Week: Break Pay, Misclassification of Franchisees, California Computer Professional Exemption, Non-Compete... [Video]

We invite you to view Employment Law This Week® - a weekly rundown of the latest news in the field, brought to you by Epstein Becker Green. We look at the latest trends, important court decisions, and new developments that...more

4.5 Million Reasons to Abide by a Non-Solicitation Agreement

On September 9, 2016, the Pennsylvania Superior Court upheld an award of $4.5 million in punitive damages against several former employees, who violated non-compete/non-solicitation agreements with their former employers. In...more

New California Law May Preclude Use of Forum-Selection Clauses to Enforce Non-Compete Agreements in Employment Contracts

On September 25, California Governor Jerry Brown signed into law Senate Bill 1241. SB 1241, effective January 1, 2017, adds Section 925 to the Labor Code to restrain the ability of employers to require employees to litigate...more

Recent Decisions Highlight Courts’ Reluctance to Modify Overbroad Non-Compete Provisions

In what may be a trend, several courts around the country this year have embraced strict interpretations of non-compete agreements, refusing to blue pencil or equitably reform overbroad or unreasonable clauses in non-compete...more

Pa. Superior Court Affirms Punitive Damage Award in Breach of Noncompetition Agreement

The Pennsylvania Superior Court has affirmed a lower court ruling that assesses punitive damages against several individuals and their new employer resulting from their en masse departure from a previous firm and, in the...more

Recent Illinois Law Prevents Use of Non-Competition Agreements for “Low-Wage Employees”

On August 19, 2016, Governor Bruce Rauner signed into law the Illinois Freedom to Work Act (the “Act”), which prohibits private sector employers from entering into non-competition agreements with their “low-wage employees”. ...more

Alabama’s Restrictive Covenants Statute: New Insight on Retroactivity, Employee Training, and the Blue Pencil Rule

Alabama’s new restrictive covenant statute became effective on January 1, 2016. Recently published committee comments clarified certain provisions of the law. The following briefly summarizes the final committee comments...more

Accountant and Attorney Liability Newsbrief - Fall 2016

Massachusetts recently amended its pay equity statute, which substantially enforces the protections of the Massachusetts Equal Pay Act. These changes will go into effect in July 2018. The prohibitions against discriminating...more

Government Attacks on Non-Compete Agreements Continue

Non-compete agreements have long been used by employers as an effective tool to protect their valuable trade secrets and confidential information. However, employers’ overuse of non-compete agreements and employers’ practice...more

New Illinois law prohibits non-competition agreements with low-wage employees

In a rare move, the Illinois legislature has enacted new legislation establishing a clear rule invalidating non-compete agreements for certain employees. Effective January 1, 2017, employers are prohibited from entering into...more

A Rose by Any Other Name is Not as Sweet: When a Non-Solicit is Actually a Non-Compete

The Ontario Court of Appeal has held that the words “accept business”, in what the employer intended to be a non-solicitation clause, served to restrict competition and is therefore not merely a non-solicitation...more

New Illinois Law Restricts Use of Employee Non-Compete Agreements

Governor Bruce Rauner has signed into law the Illinois Freedom to Work Act, prohibiting private sector employers from requiring their “low-wage employees” to sign non-compete agreements. The Act takes effect on January 1,...more

Illinois Limits Non-Compete Agreements Yet Again

On August 19, 2016, Governor Bruce Rauner officially signed into law the Illinois Freedom to Work Act (the “Act”), with an effective date of January 1, 2017. The Act, while short and to the point, will have a significant...more

Company's Position Taken in Bankruptcy Voids Noncompete Obligations

The Delaware Court of Chancery's decision in Hipcricket v. mGage, C.A. No. 11135-CB, (Del. Ch. July 15, 2016), highlights the importance of coordinating the positions taken in different legal proceedings. The plaintiff in...more

Workplace Policy Institute Insider Report — September 2016

The September edition of Littler's Workplace Policy Institute Insider Report examines what federal agencies were up to while Congress was out of session, and discusses state and local laws that advanced in the weeks leading...more

Court Upholds Enforceability of “Clickwrap” Employee Agreement

As we have previously discussed, if you want your electronic contracts to be enforceable, it is a best practice to require the counterparty to affirmatively accept the contract by checking a box or clicking a button. A recent...more

The New York Attorney General’s Crackdown on Non-Compete Agreements: What It Means for Companies

Background - Recently, the NYAG has turned quite a few heads by entering into a new legal arena: challenging non-compete agreements between companies and their employees. The NYAG settled two investigations brought...more

New Non-Compete Law Regarding Low-Wage Workers Passes in Illinois

In the wake of increasing federal and state scrutiny on the use of non-compete agreements for lower wage workers, Illinois has enacted the Illinois Freedom to Work Act (the “Act”). The Act, which applies to agreements entered...more

Illinois Prohibits Non-Compete Agreements with Low-Wage Employees

Effective January 1, 2017, the Illinois Freedom to Work Act (the “Act”) will prohibit private sector employers from entering into non-competition agreements with employees earning a “low wage.” The Act defines low-wage...more

FRANCHISOR 101: Non-Competes for Franchisees’ Employees

A "non-compete" provision limits the franchisee's ability, after the franchise agreement ends, to continue to work in a similar type of business to the franchise within a certain time period and geographic area. The purpose...more

Poachers Beware: Wisconsin Court Rules That Restrictions on Employee Solicitation Are Subject to Law Governing Noncompetes

In a case of first impression, the Wisconsin Court of Appeals held that anti-poaching provisions in post-employment restrictive covenants are subject to the statutory regulations that govern noncompete agreements in...more

RIGHT IN THE BREADBASKET: Lessons From Early Cases at the Intersection of Noncompetes and the DTSA

As many TSW readers are aware, 2016 has been a big year for trade secret law, with both the United States and the European Union expanding trade secrets protections and increasing the uniformity of their laws. But as good as...more

Low-Wage Employees in Illinois Protected From Noncompetes Under New Law

On August 19, 2016, Illinois Governor Bruce Rauner signed a bill prohibiting noncompete agreements for low-wage employees. In addition to prohibiting most private-sector employers from entering into noncompetes with its...more

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