Non-Compete Agreements Employment Contract

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

Hidden Pitfalls of Old Non-Compete Provisions

Companies and employers around the country seek to protect their intellectual property by, among other things, using non-compete provisions in employment agreements. Generally, these provisions are intended to prevent an...more

New York Court of Appeals Advises Employers to Take Time to Present Restrictive Covenants to New Employees

It is not uncommon for employers to present restrictive covenants, such as non-competition, non-solicitation, or confidentiality agreements, to new employees in a stack of orientation paperwork. A recent case from New York’s...more

Labor law: will employers welcome proposed changes to the Labor Code?

The Ministry of Healthcare and Social Development of the Republic of Kazakhstan developed a new draft Labor Code of the Republic of Kazakhstan. In addition to other novelties, a number of proposed amendments to the labor...more

Hawaii Enacts New Restrictions on Noncompete and Nonsolicitation Agreements for Employees of Technology Businesses

A new Hawaii law prohibits and makes void noncompete and nonsolicit clauses in the employment contracts of “technology business” employees if the contracts are entered into on or after the law’s effective date of July 1,...more

Striking a Balance: Alabama’s Newly-Amended Restrictive Covenant Statute

When Alabama Governor Robert Bentley signed House Bill 352 into law on June 11, 2015, he repealed Alabama’s bare bones restrictive covenant statute and replaced it with a detailed codification of much of Alabama’s restrictive...more

Court Of Chancery Confirms Limitations For Indemnification Claim

This decision confirms that the statute of limitations on a claim for indemnification does not begin to run until the underlying litigation is concluded. Indeed, equitable tolling may also extend the time when a suit may be...more

Effective Carve-Outs to Seek Injunctive Relief from the Court in Arbitration Provisions

Christopher Pike: “That’s a technicality.” Spock: “I am a [lawyer], sir. We embrace technicalities.” Star Trek Into Darkness - Arbitration is no longer the final frontier. Instead, arbitration is often the...more

[Webinar] State Specific Non-Compete Oddities Employers Should Be Aware Of - August 18, 1:00pm Eastern

In Seyfarth's sixth installment of our 2015 Trade Secrets Webinar Series, Seyfarth attorneys will discuss the significant statutory changes to several jurisdictions’ laws regarding trade secrets and restrictive covenants and...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

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

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

Oregon Tightens the Screws on Noncompetes: 18 Months Will Soon Be the Maximum Period of Restriction

As we blogged about earlier, courts in most states just plain don’t like employee noncompete agreements. Particularly when it comes to mid- and low-level employees, courts worry that enforcing a noncompete agreement will...more

So You Have a 10-Page Single-Spaced Alabama Noncompete Agreement, Now What?

Employees in Alabama, like in many other places, often are required to sign employment agreements, most of which contain future restrictions on certain activities. The menu items for these agreements usually include covenants...more

Hooli Needs New Lawyers on “Silicon Valley”

As is obvious from our many posts on the subject, we here at IP Legal Forum are big fans of the show “Silicon Valley.” That said, its season finale could have used more Jared Dunn (can we give him a spin-off already?), as...more

Uncertain Future for Non-Compete Agreements in Massachusetts: Legislators Seek Compromise

Hearing Overview: On June 23rd, the Massachusetts Joint Committee on Labor and Workforce Development met to consider legislation relating to the legality and enforcement of non-compete agreements. The committee...more

Corporate Divorce: Treat Your Employment Contract Like a Prenup

Once again I observe that while I am not a divorce lawyer, the analogies of divorce law to my employment practice are startling. Two parties meet (the interview), they realize how many things they have in common (the job...more

Non-Competes & Disintermediation (Cutting Out the Middle Man) – A Recent Case from NJ

A recent case out of the District of New Jersey addresses disintermediation as a legitimate business interest in the non-compete context. Disintermediation is just a technical term for cutting out the middle-man. Let’s take...more

Tenth Circuit Affirms Lift Of Arbitration Stay For Failure To Pay Requisite Fees

In late May, the Tenth Circuit Court of Appeals affirmed a district court decision to lift an arbitration stay for Plaintiff Pre-Paid Legal Services, Inc. (“Pre-Paid”) as Defendant Todd Cahill (“Cahill”) failed to pay his...more

Competing After Employment (Part 2)

A few weeks ago, Jawbone, a fitness tracking hardware and software maker, sued its arch-rival Fitbit, alleging that Fitbit lured its employees away to obtain access Jawbone’s confidential information and product plans. How...more

Quirky Question #262, An update on Wisconsin non-competes

Question: We are a Wisconsin employer that recently lost a number of employees to a direct competitor in our region. As a result, we are now in the process of having all of our employees sign non-compete agreements...more

Court Enjoins Outpatient Primary Care Physician’s New Employment as a Hospitalist

A Pennsylvania appellate court recently granted an employer’s request for enforcement of a restrictive covenant against a hospitalist, finding that his departure from the primary care office setting did not affect the terms...more

North Carolina Business Court Holds Pleading Stage Too Early to Dismiss Broad Non-compete

On May 7, 2015, Judge Gregory McGuire of the North Carolina Business Court denied defendants’ motion to dismiss a claim that a physician’s assistant breached non-competition and non-solicitation provisions in her employment...more

Meritas Capability Webinar - California’s Prohibition Against Non-Compete Agreements (B&P Code § 16600), the Protection of Trade... [Video]

Many attorneys representing company’s in or from other states (freedom of contract jurisdictions) believe a well drafted covenant not to compete can be an employer’s best defense against competition from former employees....more

Noncompete Law in France—Payment of a Noncompete is Required During Garden Leave

In France, a valid noncompete clause in an employment contract must provide for the payment of financial compensation to the departing employee, as long as the employee remains bound by and complies with the clause’s terms...more

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