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

Two New England States Pass Legislation Restricting Physician Non-Competes

We’ve written a lot this summer about the Massachusetts legislature’s latest failed attempt at non-compete reform. Two other states in New England, however, are able to claim accomplishments in that regard. Specifically,...more

NY Attorney General Schneiderman Declares “War” on Non-Compete Agreements That He Perceives as Overbroad

In an initiative that is virtually without precedent in New York, in the past two months (June 15, June 22 and August 4) Attorney General Schneiderman announced agreements with three separate companies in three different...more

Fourth Circuit Decision Reminds Employers That Overbroad Noncompete Agreements May Not Be Enforceable

If your company operates in a territory covered by the 4th circuit (Maryland, Virginia, West Virginia, North Carolina, and South Carolina) and requires employees to sign a noncompete agreement with language similar to the...more

The NC Businesss Court On Non-Solicitation And Non-Inducement Provisions

There is more discussion of non-solicitation clauses and non-inducement clauses in Judge McGuire's opinion last week in Sandhills Home Care,, LLC v. Companion Home Care-Unimed, Inc., 2016 NCBC 59, than I think that I've ever...more

Nevada Supreme Court Rules that Overly Broad Non-Compete Agreements are Wholly Unenforceable

In July 2016, the Nevada Supreme Court held that when a non-compete agreement extends beyond what is necessary to protect the employer’s interest, the agreement is wholly unenforceable and courts may not modify or “blue...more

All or Nothing: Nevada Supreme Court Refuses to Adopt “Blue Pencil” Doctrine for Non-Compete Agreements

In a recent opinion, the Supreme Court of Nevada refused to adopt the “blue pencil” doctrine when it ruled that an unreasonable provision in a non-compete agreement rendered the entire agreement unenforceable. “Blue...more

You Cannot Create A Restrictive Covenant Out of Thin Air

I recently read a lengthy, and I have to admit, well-crafted letter by one employer (who I will call Company A) accusing a former executive (Mr. B) of violating every conceivable restriction relating to recruiting employees...more

We Traced The Trade Secret Leak … It’s Coming From Inside The Business

Seyfarth Synopsis: Protecting trade secrets from employee theft requires more than using an NDA when onboarding new employees. If businesses want to protect their confidential information, they need to take a cradle-to-grave...more

In Like A Lion, Out Like A Lamb: Following Much Fanfare, Massachusetts Noncompete Reform Again Fails

In what has become a highly anticipated annual game of “Will They/Won’t They,” the Massachusetts legislature again failed to pass comprehensive noncompete reform legislation this year, despite much fanfare and high hopes from...more

Non-Competes to Stay in Massachusetts…For Now

Yesterday, Massachusetts woke up to what is becoming a regular occurrence: the legislature was unable to pass a bill limiting the use of non-competition agreements in the Commonwealth, although it came the closest it has in...more

It’s Time to Update Physician Noncompete Agreements in Connecticut

There have been a number of recent legislative developments that will impact physician noncompete agreements entered into in Connecticut. First, any physician noncompete agreement entered into on or after July 1, 2016, must...more

Pokémon Go – Employees Stay: A Primer on Florida Non-Competition Agreements

Pokémon Go is the newest craze to hit smartphones, finding colossal success in America. Some estimates claim that five percent of all android users had installed the game on their phones within one week of launch. Nintendo’s...more

Does The Federal Trade Secrets Act Make A Difference For Connecticut Employers?

The federal Defend Trade Secrets Act (the President signed it on May 11th) went on the books with a lot of fanfare. For the first time, employers (and other trade secret owners) have a federal law claim for trade secret...more

UPDATE: Massachusetts Gets Closer To Law Limiting Non-Competes

We reported in May that the Massachusetts Noncompetition Agreement Act, a new bill regulating non-compete agreements in Massachusetts, had made its way out of committee and onto the floor of the House. On June 29, 2016, the...more

Update: Massachusetts House of Representatives Edits and Unanimously Approves Non-Compete Bill in an Attempt to Make Progress...

As we previously reported, Massachusetts is making yet another go at non-compete reform, as the Joint Committee on Labor & Workforce Development introduced a compromise bill at the end of May that has many in the Commonwealth...more

A null and void non-compete clause does not trigger automatic damages

Until now, there has been no requirement for an employee to demonstrate any loss suffered to be entitled to damages owing to a null and void non-compete clause inserted into his or her employment contract. In its...more

Effect of Public Act 16-95 on Physician Non-Compete Agreements

Effective Date: The restrictions imposed by the Act apply to any covenant not to compete “entered into, amended, extended or renewed” on or after July 1, 2016....more

It’s All Good in China, Until It Isn’t: Tips and Flags for PRC Employers

Due to factors such as China’s rapid economic development, a disconnect between legislation and enforcement, the country’s historic reliance on personal connections (or guanxi) to do business, and idiosyncratic local...more

Labor & Employment E-Note - June 2016

The scope of the federal Defend Trade Secrets Act enacted on May 11, 2016 extends well beyond employment issues. However, its impact on an employer's asset protection and enforcement program is quite significant. Please...more

New Jersey Rejects Contractual Shortening of Limitations Period

The New Jersey Supreme Court’s decision forbids employers from contractually shortening the two-year limitations period under the state’s Law Against Discrimination. In a decision issued on June 15 that reversed two...more

Employers Cannot Shorten Time Frame to Bring Claims Under N.J. LAD

In a decision issued yesterday in Rodriguez v. Raymours Furniture Company, the Supreme Court of New Jersey ruled that provisions in employment agreements shortening the limitations period for bringing claims under the New...more

Ask the Health Law Gurus™: What is a Non-Compete Clause in an Employment Contract? Is it Enforceable?

Question: I have heard about non-compete clauses being negotiated in employment agreements with physicians. What is a non-compete clause? What does it mean if my contract has a non-compete clause?...more

Trump, Captain America, Deadpool and the Impact on Florida Non-Competition Agreements

Competition is the name of the game this summer. The presidential hopefuls travel the country competing for votes. After knocking out Marco Rubio and Ted Cruz and more than a dozen other Republican Presidential hopefuls,...more

New Restrictions on Physician Non-Competes in Connecticut

A new Connecticut law significantly restricts the use of physician non-compete agreements. Public Act No. 16-95 (the “Act”), signed into law by Governor Dannel Malloy on June 2, 2016, limits the allowable duration and...more

Connecticut Legislature Passes Bill Limiting Physician Non-Compete Agreements

The Connecticut legislature recently passed Public Act No. 16-95 (PA 16-95), which aims to increase competition among health care providers by, among other things, restricting physician non-compete agreements. Though passed...more

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