News & Analysis as of

Non-Compete Agreements › Duty of Loyalty

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 -
Fox Rothschild LLP

Time to Revisit Your Confidentiality Agreement

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As you surely know by now, non-compete and non-solicit agreements, and related provisions in settlement or other types of agreements, will be even more heavily scrutinized in California in 2024. So enough about what you...more

Fisher Phillips

Former Employees Who Couldn’t Wait to Leave Their Florida Employer Before Illegally Competing Ordered to Pay Heavy Price

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A Florida Circuit Court judge sternly rebuked two former employees of a private South Florida provider of Autism treatment services who began competing illegally with a new employer – while still employed with their old...more

PilieroMazza PLLC

Disloyal Employees: Disgorgement Offers Employers Some Reprieve

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In many states, employees owe a duty of loyalty to their employer as long as they remain on the employer’s payroll. In other words, employees must generally act in the best interests of their employer—and not solely for their...more

FordHarrison

Non-Compete News: Georgia Court Holds Contractor Owes Fiduciary Duty/Duty of Loyalty

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In late 2019, the Northern District of Georgia (Atlanta federal court) addressed the duties owed when an independent contractor leaves one trucking company to work for another. In Wind Logistics Prof’l v. Universal Truckload,...more

Stoel Rives LLP

We’re Not California, Yet: Washington Enacts Some Limitations on Noncompetition Agreements and Moonlighting Bans

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Washington has not gone as far as California, which generally bars all forms of noncompetition agreements. However, after several years of unsuccessful attempts, the Washington legislature has just passed Engrossed Substitute...more

Genova Burns LLC

Appeals Court Tells Former Employees: Two Wrongs Don’t Make Them Right

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The Third Circuit skirted the issue as to the means by which the employer, Scherer Design Group (“SDG”) found out about the theft. In the end, the fact that an employer may have violated the common law by accessing private...more

Amundsen Davis LLC

Exit Stage Left –Tips For When A Key Employee Moves To A Competitor

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As with most things in life, you should hope for the best, but plan for the worst in the event that a valued employee leaves to join a competitor. This post contains some helpful tips to keep in mind following such a move by...more

McAfee & Taft

Ruling offers guidance for companies seeking injunctions to protect trade secrets

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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

Littler

Littler Global Guide - Sweden - Q3 2018

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Policy Requiring All Employees to Shake Hands Discriminated Based on Religious Belief - Precedential Decision by Judiciary or Regulatory Agency - During a job interview, a job seeker refused to shake the company...more

Fisher Phillips

California Jury Punishes Former Employees for Unfair Play-Only Lawful Competition is Sacrosanct!

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Notwithstanding California's strong public policy in favor of lawful competitive behavior, California employees' duty of loyalty to their current employer reigns supreme. A violation of that duty can lead to costly jury...more

Butler Snow LLP

When Does Preparing to Compete Cross the Line?

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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

Spilman Thomas & Battle, PLLC

An Argument for the Use of Stock Options with Forfeiture Clauses for Breach of Duty of Loyalty

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Introduction Jimmy John’s In 2014, Emily Brunner (“Brunner”) and Caitlin Turowski (“Turowski”) filed a complaint in Illinois against the sandwich company, Jimmy John’s, and its franchise affiliates. The complaint was amended...more

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