News & Analysis as of

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 -

Even a Well-Crafted Non-Compete May Not Get You Injunctive Relief

by Burns & Levinson LLP on

No doubt, having a properly drafted agreement is critical if you wish to prevent a former employee from competing against you or soliciting your customers. But, simply having a clear and straight-forward agreement may not be...more

Discover (or rediscover) U.S. employment law: Your questions, our answers

by Dechert LLP on

Companies doing business in the U.S. invariably encounter a legal system and employee relations laws that differ in many significant respects from those in other countries. The sources of U.S. law come from the U.S. federal...more

Texas Pre-Suit Discovery – Obligations Under Unusual Procedure Clarified

by Jackson Lewis P.C. on

Although most employers are very familiar with the usual discovery process of litigation, they may not be as familiar with the Texas Rules of Civil Procedure’s Rule 202, which concerns pre-suit depositions. Rule 202 can be...more

What To Do When You Hire A Thief

by Foley & Lardner LLP on

Employers victimized by trade secret misappropriation appropriately express righteous outrage, both at the offending ex-employee and sometimes at the new employer. However, on another day the roles can reverse: That same...more

Employment News - April 2017 #3

by Hogan Lovells on

Taking the long view – potential nine month restriction for broker upheld - In Tradition Financial Services Ltd v Gamberoni the High Court has upheld six month non-compete and non-solicitation covenants, despite...more

Restrictive Covenants Can Swing Both Ways: A 3-Step Plan To Avoiding Legal Risks When Onboarding New Employees

by Fisher Phillips on

Employers have been using restrictive covenant agreements – contracts that contain non-compete, customer non-solicitation, employee non-solicitation, or non-disclosure of confidential information – with increasing frequency...more

The Value of a Non-compete Agreement to an Acquiring Company Can Be Limited

by Burns & Levinson LLP on

It is standard practice in M&A transactions for the acquired business to assign all if its contractual rights to the purchaser. While that may sound good in theory, depending upon how the underlying contracts are drafted,...more

Watch for the Fox in Your Henhouse: Gig Companies at Risk

by Fisher Phillips on

Intellectual property threats (IPT) to companies participating in the gig economy may be greater than those experienced by traditional business. While this may seem self-evident to some, reflection on the matter confirms to...more

First Published Opinion From New Business Court Judge Conrad

by Brooks Pierce on

Business Court Judges don't have to issue written Opinions in cases granting Preliminary Injunctions. (G.S. § 7A-45.3 limits the obligation to issue a written Opinion to rulings rendered per NCRCP 12, 56, 59, and 60). ...more

Construction E-Note - March 2017

by Burr & Forman on

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

by Dentons on

"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

by Dentons on

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...

by Carlton Fields on

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

by Nexsen Pruet, PLLC on

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?

by Jackson Lewis P.C. on

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

by Miller Canfield on

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?

by Butler Snow LLP on

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

by Seyfarth Shaw LLP on

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

by Payne & Fears on

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

by FordHarrison on

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

by Saul Ewing LLP on

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

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