Non-Compete Agreements Non-Solicitation Agreements

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

Early Dismissal of Trade Secret Lawsuit May Help Defeat Claim for Attorney’s Fees

A lawsuit asserting intellectual property claims and violations of a non-competition and non-solicitation agreement played a dominant role in the second season of HBO’s comedy “Silicon Valley.” Throughout the season, it was...more

What Should Be in Your Physician Shareholder Agreement?

Prior to partnering with one or more physicians, doctors should consider drafting a shareholder agreement that outlines the terms of the relationship, as well as the goals of the corporation. Shareholder agreements anticipate...more

Thieves Among Us? Protecting Trade Secrets From Employee Theft

Employee trade secret theft is a serious problem, and getting worse. According to an analysis of federal court cases filed over a 58-year period, 85 percent of trade secret theft was committed by employees or business...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

Alabama’s New Non-Compete Statute: Are You Ready For New Year’s Day?

Those involved in drafting, negotiating, or litigating covenants-not-to-compete in Alabama have long known that Alabama’s statute books seldom provide ready answers on this particular topic. The text of current Alabama Code...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

New York Attorney General Pursues Dental Management Company for Corporate Practice Violation

Attorney General (AG) Eric Schneiderman announced a settlement With Aspen Dental Management (ADM). The Settlement Agreement requires ADM to pay $450,000 in Civil Penalties, after the AG found that the company was engaged in...more

Caught Stealing More Than Bases, St. Louis Cardinals Teach Trade Secret Safety to All Employers

The recent hacking attack against the Houston Astros is a wake-up call for all employers: no organization is safe from its adversaries’ attempts to steal proprietary information to gain a leg up in the competition. The...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

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

Competing After Employment (Part 1)

A key employee departs. The employer, worried that confidential information has leaked out of the company, scrambles to respond. After a frenzied period of preparation, the employer starts a lawsuit and seeks an injunction...more

Are Restrictive Covenants in Sale Agreements Enforceable?

The Supreme Court of Canada recently addressed the issue of the enforceability of restrictive covenants where the purchaser of a business offered employment to the business’s previous owners (Payette v Guay Inc. 2013 SCC 45)....more

Restrictive Covenants in the Construction Industry: An Often Overlooked and Underutilized Source of Protection

Restrictive covenants come in many forms; they can be stand-alone agreements, such as a confidentiality agreement, or they can be included in various types of contracts, such as noncompete or nonsolicitation provisions in...more

Brokers Switching Firms: The Protocol and Recent Developments

In August 2004, Merrill Lynch, Citigroup, and UBS entered a pact not to sue one another over client relationships in their wealth management businesses. This pact was known in the industry as the Protocol for Broker...more

A Win for Employers Enforcing Restrictive Covenants in Virginia

The enforceability of a restrictive covenant in an employment agreement, including a non-competition, non-solicitation, or non-disclosure provision, depends greatly on the state in which the covenant is to be enforced. ...more

California Sunshine Warms the Market: A Twist on Customer Non-Solicitation Provisions in the Golden State

Those of you reading our Employee Mobility blog posts are familiar with California’s unique approach to non-compete agreements: they are, except in a few limited circumstances, unenforceable in the Golden State. And that...more

Blog: The ABCs of PIIAAs: Protecting Employee-Generated IP

Companies seeking to avoid employment disputes and to secure intellectual property rights to their employees’ inventions should make sure that all employees have signed confidentiality and inventions assignment agreements. ...more

New Year’s Resolutions for Companies Seeking to Protect Their Trade Secrets in 2015

The start of a new year is a perfect opportunity to set lofty goals of self-improvement. While the odds of completing a New Year’s resolution aren’t exactly inspiring (over half are expected to fail within six months) studies...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...

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

Protecting Your UK Business Against Departing Employees

Departing employees can represent a significant threat to UK business. This is particularly so in the case of senior managers and employees who have access to confidential information or who exert influence over key...more

Alternative Theories To Address Former Employee Competition Where There Are No Covenants

A recent Connecticut Superior Court case demonstrates that all is not lost for an employer when a former employee without a non-compete or a non-solicitation covenant leaves and competes. Wentworth, DeAngelis & Kaufman, Inc....more

Business Litigation Reporter -- June 2014

Goodwin Procter’s Business Litigation Reporter provides timely summaries of key cases and other developments within dedicated Business Litigation sessions and related courts throughout the country – courts within which...more

Federal District Court Rejects Challenges to Employee Non-Solicitation Agreement

As reported in EmployNews, in recent years North Carolina courts have increased the degree of scrutiny used when reviewing employee non-compete agreements, rejecting as overbroad agreements that would have been upheld in the...more

Restrictive Covenants and the Cross-Border Employer

In most U.S. states employers are free to bind employees with restrictive covenants – which commonly take the form of post-employment restrictions on soliciting clients or employees – as a condition of employment. The wide...more

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