News & Analysis as of September 19, 2024

Corporate Counsel

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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 -

Delaware Court Raises Eyebrows by Striking Down Noncompete in Sale Transaction

BakerHostetler on 12/16/2022

The Delaware Court of Chancery (the Court) has raised eyebrows with a recent decision, in the case of Kodiak Building Partners, LLC v. Adams, to strike down a noncompetition covenant binding upon a seller in a sale...more

Ruling offers guidance for companies seeking injunctions to protect trade secrets

McAfee & Taft on 2/23/2019

Customers, trade secrets, and proprietary information are the lifeblood of any company. For this reason, companies routinely have employees sign confidentiality agreements and, to the extent they are enforceable,...more

Non-Compete News: Is Your Non-Compete Clause Too Broad? An Illinois Court Offers Guidance

FordHarrison on 4/24/2018

When drafting restrictive covenants, employers face a common dilemma about the scope of activities to be restrained. On the one hand, highly focused non-compete language tends to be more enforceable but might not protect the...more

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

Nutter McClennen & Fish LLP on 9/22/2016

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

South Carolina Court of Appeals Says 150-Mile Geographic Restriction in Non-Compete is Unreasonable

Parker Poe Adams & Bernstein LLP on 5/11/2016

South Carolina courts evaluate the enforceability of non-compete provisions executed in the employment context and in connection with the sale of the business under the same reasonableness test. To be enforceable in South...more

Utah Enacts Post-Employment Restrictions Act

Littler on 4/1/2016

A growing number of states are tightening conditions on restrictive covenants. The start of 2016 saw Oregon and Alabama enact higher barriers to the enforcement of non-compete agreements in those states. As of March 22,...more

Illinois Court Leaves Former Employer Without Remedy After Invalidating Its Overly Broad Restrictive Covenants

Ogletree, Deakins, Nash, Smoak & Stewart,... on 11/5/2015

Just days before Halloween, the Illinois Appellate Court sent a scary message to employers: We will not enforce or judicially modify your overly broad restrictive covenants! In AssuredPartners, Inc. v. Schmitt, No. 13 CH...more

Et tu, Brutus? Yet Another New York Court Offers Guidance on the Do’s and Don’ts (Mostly Don’ts) in Post-Employment Restrictive...

Mintz - Employment, Labor & Benefits... on 10/23/2014

A recent non-compete case out of a New York County court offers employers valuable drafting tips on non-compete and non-solicitation provisions....more

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Non-Compete Agreements › Contract Drafting › Corporate Counsel

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