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

West Virginia AG Clears Merger Creating Second Largest Hospital Chain in the State with Conduct Remedy

The federal antitrust enforcement agencies have trumpeted their preferences for structural, as opposed to conduct, remedies as the solution to potentially anticompetitive mergers. In contrast, State Attorneys General have...more

Filer Beware! E-Filing Error Can Destroy Trade Secret Status

First rule of thumb in trade secrets litigation? A trade secret must be kept secret. It is painfully obvious, but modern practitioners must not grow complacent due to the convenience of electronic filing. Although trade...more

"Irreconcilable Clash" of Jurisdictions

James Petter was a U.K.-based senior employee of the U.K. subsidiary of a U.S. company. As part of his compensation package, he was awarded restricted stock units (RSU) under the U.S. parent’s plan. The plan contained an...more

No Economic Recovery Available For Breach Of A Non-Compete Set Forth In A Distributorship Agreement Which Bars Damages Awards

Where a freely negotiated contract between two sophisticated companies included a provision barring an award of monetary relief for breach of contract, the court will enforce the provision as written and award no economic...more

Stark Litigation: The Tuomey Saga Draws to a Close

In what may be the penultimate chapter of the long–running saga of the Tuomey case, the Fourth Circuit affirmed the final judgment and award in favor of the government in its case against Tuomey Healthcare System, Inc....more

If You Have Confidential Information, Keep It Confidential!

I’ve been involved in many cases where it is alleged that someone violated his or her non-compete agreement or misappropriated the company’s confidential information or trade secrets. Often, the key issue has been not what...more

Early Dismissal of Trade Secret Lawsuit May Help Defeat Claim for Attorney’s Fees

A lawsuit asserting intellectual property claims and violations of a non-competition and non-solicitation agreement played a dominant role in the second season of HBO’s comedy “Silicon Valley.” Throughout the season, it was...more

Can a Move to California Invalidate a Non-Compete?

It turns out the answer to this question depends on the reason for the move and whether California law applies to the contract. We all know that California is finicky when it comes to non-competes – so much so that...more

What Should Be in Your Physician Shareholder Agreement?

Prior to partnering with one or more physicians, doctors should consider drafting a shareholder agreement that outlines the terms of the relationship, as well as the goals of the corporation. Shareholder agreements anticipate...more

P3s: Managing Risks and Rewards

Overview - Successful P3s—Public-Private Partnerships—can be blessings for state and local governments searching for new ways to finance many types of critical “infrastructure”—roads, schools, prisons, and more—and...more

Employment Flash - July 2015

The July 2015 edition of Employment Flash covers a number of developments, including: the U.S. Supreme Court's ruling that job applicants need only show that a religious accommodation was a factor in denying employment to...more

Post-Employment Covenants: Is an Inducement to Smile An Inducement to Cancel?

A recent Circuit Court case confirms that the term “non-inducement” means just that. In American Family Mutual Insurance Company v. Graham, the Eighth Circuit affirmed a jury verdict against an insurance agent who, the jury...more

Thieves Among Us? Protecting Trade Secrets From Employee Theft

Employee trade secret theft is a serious problem, and getting worse. According to an analysis of federal court cases filed over a 58-year period, 85 percent of trade secret theft was committed by employees or business...more

New 2015-2016 Employment Laws for Oregon Businesses

The 2015 Oregon legislature has adjourned, but not before handing Oregon businesses a number of significant new employment laws. Below is a brief summary of the new legislation, all of which Governor Kate Brown has signed,...more

Alabama Revises Non-Compete Statute In Effort to Provide Additional Clarity

On June 11, 2015, Alabama’s Governor signed into law legislation that revises the state’s non-compete statute, which is found in Section 8-1-1 of the Code of Alabama. The effective date for these changes is January 1, 2016. ...more

Employers Burdened By More New Laws

The Oregon Legislature enacted several laws in 2015 that will significantly affect your workplace. The following laws go into effect Jan. 1, 2016: Paid Sick Leave - As expected, Oregon has enacted a mandatory paid sick leave...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

Non-Compete Injunction Denied, Ninth Circuit Remands For Reconsideration, But District Court Denies It Again, Declines Equitable...

As directed by the court of appeals, a district court judge reconsidered his denial of a non-compete covenant case injunction but reached the same result on reconsideration. He also stated why he would not have extended the...more

Purchaser of LLC Units May Enforce Non-Compete Without Employee Consent

As ubiquitous as limited liability company interests may be these days, litigants are still arguing over whether the sale of LLC membership units is like the sale of stock. When a stock sale takes place, the new owners of...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

Be Global - June 2015

Whistleblowing: An employer's guide to global compliance - As the global push to combat corruption in government, politics, civil society and business gathers pace, whistleblowing continues to be a topic of ever...more

Fifth Circuit Continues to Permit Wage Claim Waivers in Private Settlements, But Only Where a Bona Fide Dispute Exists

A Federal Appeals Court recently confirmed that under certain circumstances, parties may privately settle and release claims under the Fair Labor Standards Act. A generic release contained in a settlement agreement won’t do...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

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

Restrictive Covenants – A Close Call Goes The Employer’s Way

A very recent federal court decision, A.H. Harris & Sons, Inc. v. Naso, 2015 WL 1420132 (D.Conn.), illustrates how judges weigh various facts when deciding to grant or deny a preliminary injunction in a restrictive covenant...more

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