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

Construction E-Note - March 2017

In an article published on March 10, 2017 by Construction Executive, Meghan Cox provides guidance on how businesses can reduce the risks associated with violence in the workplace and how businesses should handle this violence...more

For Your Consideration: Recent State-to-State Developments on Sufficient Consideration for Employee Non-Compete Agreements

The various laws, statutes, and policies governing non-compete agreements are nuanced, inconsistent, and sometimes downright contradictory from state-to-state. The issue of consideration is no different. Like other...more

If You Checked The Box, You’re Bound By The Contract

A recent decision by the Third Circuit Court of Appeals highlights the well-established legal maxim that “when a party enters into a signed, written contract, that party is presumed to understand and assent to its terms.”...more

Purchaser of Assets in North Carolina Should Not Rely on Assign Ability of Seller's Non-Compete Agreements

We regularly field questions from companies in the process of an asset purchase, asking whether they can obtain an assignment of the seller’s non-competition agreements with its employees. While this question has never been...more

China: Non-Competes and Employee Post-Departure Reporting Obligations

"Non-compete" refers to an agreement concluded between an employer and an employee at the time of hire, which provides that for a certain period after the termination or rescission of the employment contract, the employee...more

China: Application of Non-Competes To Protect Business Secrets

An enterprise may have no patents or trademarks, but definitely have business secrets. Business secrets—the enterprise’s core information assets—are important intangible assets that go to the core competence of the...more

Court Finds That Arbitration Award That Interpreted Contract “Termination” To Include Contract “Expiration” Was Not A “Manifest...

Former franchisees filed a petition to vacate an arbitration award entered in favor of their former franchisor which enforced a 2-year non-compete provision in the parties’ franchise agreement when the agreement expired. The...more

Court Finds Broad Non-Disclosure Agreement is Unenforceable Non-Compete

Last week, in the case of Fay v. Total Quality Logistics, LLC, the South Carolina Court of Appeals ruled that language in a non-disclosure agreement was so broad it effectively became an invalid non-compete agreement. The...more

What Does it Mean to “Modify” an Unenforceable Non-Competition Covenant Under Georgia’s Restrictive Covenants Act?

Although Georgia’s Restrictive Covenants Act has been on the books since the spring of 2011, no judge has decided the exact scope of Georgia courts’ blue-penciling abilities – until now....more

Michigan Supreme Court Makes Commercial Non-Compete Agreements Easier to Enforce

It is now a lot easier to enforce commercial noncompete agreements in Michigan. In its recent decision in Innovation Ventures v. Liquid Manufacturing, a unanimous Michigan Supreme Court holds that commercial noncompete...more

When Does Preparing to Compete Cross the Line?

An employee or former employee who starts preparing to compete with his employer or former may get tripped up in one of two scenarios: (1) breaching a fiduciary duty of loyalty; or (2) running afoul of a noncompete...more

In Georgia, the Blue-Pencil Only Strikes Overly Broad Non-Competes and Does Not Rewrite Them

In Spring 2011, the Georgia legislature passed a new restrictive covenant statute, which, for the first time, allowed Georgia courts in reviewing non-competition agreements between employer and employee to blue-pencil or...more

2017 Proposed State Legislation

A number of bills currently before the Nevada Legislature will affect employers if signed into law. The following summarizes these bills as they have been introduced....more

Non-Compete News - New York Will Not Stop Fired Employees from Competing

A company that terminates an employee — even if it offers the employee the chance to apply for a position with the company’s successor — cannot enforce restrictive covenants over that employee, a New York appeals court...more

Employees Bound by Non-Compete Agreement When They Clicked “Accept” to a Bonus on Intranet

Two employees who clicked “accept” on an online form in order to receive a bonus were bound by additional language that included an agreement to not compete in the future. Messrs. Lynch and Halpin worked in sales for ADP, and...more

Employees Bound By Non-Compete By Clicking On Box To Accept Stock Grants

Employees at payroll processing giant ADP were held to the terms of a non-compete contained in online stock award documents when they clicked the “I have read and agreed” button in order to receive stock grants. On February...more

The National Labor Relations Board 2016 Year in Review – Whitepaper

Introduction - In comparison to recent history, 2016 was a tame year for the National Labor Relations Board (“NLRB” or “the Board”). While continuing to issue decisions that left employers scratching their heads, the...more

Don’t Friend My Friends: Nonsolicitation Agreements Should Account for Social Media Strategies

As social media becomes an important part of many companies’ sales and branding strategies, issues relating to companies’ ability to protect their investments in such strategies are emerging. Indeed, this blog has previously...more

Defending A Former Employee On a Non-Compete Or For Misappropriation Of Trade Secrets? Read This.

Do you really have to rush to Court to obtain an injunction for a misappropriation of trade secrets? Maybe not. But for an injunction enforcing a non-compete agreement, maybe yes. ...more

New York Appellate Court Declines to Enforce Noncompetes Against Employees Terminated Without Cause

A recent decision by the New York Supreme Court, Appellate Division for the First Department, Buchanan Capital Markets, LLC v. DeLucca, 144 A.D.3d 508 (1st Dep’t. 2016), suggests that noncompetition restrictions against...more

Selective Enforcement Not A Viable Defense to Non-Competition Agreements Under Ohio Law

Employers sometimes worry whether seeking to enforce their non-competes in some circumstances but not others might preclude enforcement altogether in the future. Not so, says one court. Applying Ohio law, the United States...more

Click Here — 3rd Circuit Enforces Restrictive Covenants Tied to Electronic Acceptance of Stock Award

On February 7, 2017, the Third Circuit affirmed a partial preliminary injunction order barring two former ADP employees from soliciting customers for their new employer for one year. This decision is notable as it affirmed...more

The Future of Noncompetition Agreements in Massachusetts and Beyond

The landscape of employee noncompetition (noncompete) agreements is in flux: most states allow such agreements and many states have enacted legislation that governs them. In Massachusetts, the legislature has considered...more

Here We Go Again: Massachusetts Non-Compete Legislation Back in Play

As we previously reported, the Massachusetts House and Senate passed contrasting versions of non-compete reform bills in 2016 but were unable to come to an agreement by the end of the legislative session. Efforts began anew...more

Unclear crystal ball: What might 2017 hold for employers?

In 2016, employers were confronted with many new laws, regulations, and issues. Companies geared up for a substantial change in the overtime rule, which ultimately didn’t take effect after a federal judge in Texas issued an...more

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