Non-Compete Agreements Hiring & Firing

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

Massachusetts Noncompete Bill Advances, but Passage Remains Uncertain

In March, we reported that Massachusetts House Speaker Robert A. DeLeo had announced his support for legislative restrictions on employee noncompetition agreements, signaling a potential turning point in the long-running...more

Non-Compete Legislation In Massachusetts: Could It Actually Happen?

On May 16, 2016, the Massachusetts General Court’s Joint Committee on Labor & Workforce Development reviewed a re-drafted bill concerning non-compete agreements in the Commonwealth and reported it out of the Committee...more

Non-compete Restrictions in Texas Severance Agreements

One of the most frequent Texas non-compete questions I am asked is whether an employee and employer can enter an enforceable non-compete agreement at the time of termination. From the employee's perspective, this seems...more

The Dearth of Restrictive Covenant Case Law in Georgia

It was five years ago this week (May 11, 2011, to be precise) that Georgia's new restrictive covenant statute went into effect. Prior to the effective date of the statute, Georgia was (surprisingly for many out-of-state...more

White House Calls For Non-Compete Reform

Last Thursday, the White House issued a report titled “Non-Compete Agreements: Analysis of the Usage, Potential Issues, and State Responses” and an accompanying blog post. Relying heavily on a report earlier this year from...more

Connecticut General Assembly Addresses Several Employment-Related Bills in Shortened Session

The “short” session of the Connecticut General Assembly’s biennial term ended on May 4, but there were several employment-related bills that passed in the session’s final days and hours. While most of these bills are still...more

Utah's New Post-Employment Restrictions Act Effective Tomorrow

Utah's newly enacted Post-Employment Restrictions Act (Act) takes effect tomorrow and significantly limits the duration of newly entered noncompetition agreements. Employers should review their noncompetition agreements going...more

White House Issues A Call To Arms With Respect To Non-Competes

On May 5, 2016, the White House issued a report largely piggybacking on a recent U.S. Treasury Department study, on which we previously posted, with a primary focus on the purported misuse and negative impacts of non-compete...more

Non-Compete Restriction Held To Be Unenforceable

In Bartholomews Agri Food Ltd v Thornton [2016] EWHC 648 (QB), the High Court considered whether a non-compete post-termination restriction was an unlawful restraint of trade. Bartholomews Agri Food Ltd (Bartholomews)...more

Eighth Circuit Decision Suggests Employers May Have An Alternative Option to Using Non-Compete Agreements

A recent Eighth Circuit Court of Appeals decision suggests another avenue for employers to secure damages from an employee who competes against them after employment ends – without the use and many limitations of a...more

The Employment Law Authority - March/April 2016

A federal appellate court recently held that an employer did not violate the Americans with Disabilities Act (ADA) when it discharged an employee who had been sleeping at work and falling short of the employer’s performance...more

North Carolina’s Strict Blue Pencil Doctrine is Written in Ink: The Supreme Court Rules That Courts Cannot Revise Noncompete...

The North Carolina Supreme Court (the “Supreme Court”) recently reiterated that North Carolina courts may not revise overly broad restrictions in noncompetition agreements, overturning a Court of Appeals decision that had...more

Labor and Employment Group News: U.S. Treasury Issues Report on the Economic Effects of Non-compete Contracts

An office of Economic Policy Report published in March 2016, entitled "Non-Compete Contracts: Economic Effects and Policy Implications," estimates that 18% of all workers, or nearly 30 million people, are covered by...more

Getting Full Value out of Noncompete Agreements

Increasingly, companies are having employees sign noncompete and nonsolicitation agreements in order to protect the company, and its customer base, should the employee leave the company. These agreements are clearly...more

Utah Enacts Post-Employment Restrictions Act

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

Labor & Employment E-Note - March 2016

Are your cell phone policies as outdated as your original iPhone? Cell phones have become common place in today’s workplace and employers must consider the legal risks they pose. Thus, if you haven’t revisited your policies...more

Utah Passes Bill Regulating Non-Competes

After heated debate between legislators and among the business community, the Utah state legislature has passed HB 251, the Post-Employment Restrictions Act. As passed, the Act prohibits “post-employment restrictive...more

Illinois Restrictive Covenants: Special Rules Apply To Non-Compete and Non-Solicit Agreements

All employers doing business in Illinois must be aware of a special rule regarding the enforceability of covenants not to compete, which may apply, depending on where their business is located. In Fifield v. Premier Dealer...more

Better Think Twice About Enforcing A Non-Compete

Over the last couple of years, there has been an increase in employees striking back against employers trying to enforce non-compete agreements.  In those cases, the employee argues that his former employer has interfered...more

5 Tips for Retaining Employees in the Automotive Industry

Attracting and retaining employees in the automotive industry can be very challenging, especially when competitors are doing what they can to lure the best talent. After you provide an employee with a good job, training and...more

Continued Employment is Enough for a Severance Agreement

Here’s one where the tables were turned. Former employees often argue that a non-compete agreement is unenforceable because there was inadequate “consideration.” Consideration is the exchange parties to a contract make, what...more

Massachusetts Federal Court Reaffirms That Continued Employment Constitutes Sufficient Consideration for Non-Compete

In American Well Corporation v. Obourn, Civil No. 15-12265-LTS, 2015 WL 7737328 (D. Mass. Dec. 1, 2015), Judge Sorokin of the United States District Court for the District of Massachusetts upheld a non-compete entered into...more

Five Tips for Retaining Employees in a Competitive Business Climate

Attracting and retaining employees is always a challenge. After you provide an employee with a good job, training and development, customer contacts, and access to trade secret and other confidential information, it is...more

Arkansas Football and Non-Competes?

Three years ago, we addressed the question of why college football programs do not use non-compete restrictions to prevent coaches from moving to direct rivals. At the time, we mentioned the fact that Arkansas was a program...more

Pennsylvania Supreme Court Finds That UWOA Language Does Not Waive Right to Challenge Adequacy of Consideration for Restrictive...

On November 18, 2015, in a highly anticipated decision, the Pennsylvania Supreme Court held that employers could not use the language set forth in Pennsylvania’s Uniform Written Obligations Act (“UWOA”) to avoid providing...more

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