Non-Compete Agreements Restrictive Covenants

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

Food Giants Prepare for Battle Over Trade Secret Misappropriation

On July 19, 2016, the "You Pick Two®"-famous Panera Bread filed a lawsuit in St. Louis against Papa John's, claiming that the international pizza company hired away a Panera IT executive who is misappropriating trade secrets....more

Nevada Supreme Court Refuses To “Blue Pencil” Unreasonable Non-Compete

Nevada, unlike California, applies a reasonableness test to non-compete agreements. Although the Nevada courts haven’t identified a specific heuristic to be followed, a covenant not to compete will be found to be...more

Navigating Non-Compete and Other Key Talent Issues: A Primer for Employers

Finding new customers and growing sales and market share are the Holy Grail. One way to achieve these objectives is to hire talented sales professionals or managers from competitors. These individuals already know the...more

Can Non-Compete Agreements Be Classified As Personal Services Contracts?

In Symphony Diagnostic Services No 1 Inc. d/b/a MobilexUSA v. Greenbaum, the Eighth Circuit Court of Appeals tjust addressed an issue that frequently arises in the non-compete context: what happens when a company buys the...more

Wisconsin Court Throws Out Choice-of-Law Provision, Then Enforces a Non-Compete Anyway

A recent decision from the Eastern District of Wisconsin, Schetter v. Newcomer Funeral Service Group, Inc., presented a smorgasbord of juicy noncompete issues, including: - ignoring a choice of law provision; -...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

Recent Developments Again Call for Timely Review of Restrictive Covenants

We have suggested before that employers should view non-competition and other restrictive agreements as “live” documents, warranting regular examination to ensure they are deployed with appropriate precision and account for...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

Terminating an Injunction Regarding Confidential Information

Although the Georgia appellate courts have not issued many decisions on the new restrictive covenant statute that went into effect on May 11, 2011, they do continue to issue decisions in the area of protecting confidential...more

Court Upholds Non-Compete Giving Former Employer Discretion To Determine Whether Ex-Employee Is Working For A Competitor

A severance agreement executed in connection with a Stark Truss employee’s resignation included a one-year non-competition clause. It allowed the company unfettered discretion to decide if his new employer was a competitor...more

Alabama's New Non-Compete Statute Places New Restrictions on Employers

Effective January 1, 2016, Alabama passed a new non-compete and non-solicitation statute, repealing § 8-1-1 of the Alabama Code (the "New Act"). The New Act attempts to codify principles the Alabama courts have previously...more

Physicians And Foundations And Facilities! Oh My!

On June 2, 2016, Governor Malloy signed into law Public Act 16-95, An Act Concerning Matters Affecting Physicians, Health Care Facilities and Medical Foundations (the "Act"). The Act will have significant impact on...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

Restrictions on Employees' Post-Employment Work in North Carolina: The Balancing of Interests

The use of "covenants not to compete," or "non-compete agreements," which limit former employees from working for a competitor are gaining in popularity and are used in a wide variety of industries and by service providers. ...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

Bring Out the Body Bags: Seller’s Covenant, In Asset Sales Agreement, Not To Compete Within 150 Miles For 10 Years Unenforceable

Palmetto bought the assets of Knight Systems’ mortuary transport business. The agreement of purchase and sale included (a) Palmetto’s commitment to buy body bags, at specified discounted prices, exclusively from Knight...more

How Much Would You Charge To Let Your Counterparty Breach The Contract – Wrotham Park Damages

The Court of Appeal's decision in Karen Morris-Garner & Andrea Morris-Garner v OneStep (Support) Ltd [2016] EWCA Civ 180 suggests that Wrotham Park damages may become more common as a remedy for breach of contract. These...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

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

South Carolina Court of Appeals Says 150-Mile Geographic Restriction in Non-Compete is Unreasonable

South Carolina courts evaluate the enforceability of non-compete provisions executed in the employment context and in connection with the sale of the business under the same reasonableness test. To be enforceable in South...more

No Microscope Needed to See Why This Non-Compete Is Unenforceable

When is a microscope not needed? When the problem one is looking at is big as an elephant, not small as an amoeba. Nion, an electron microscope manufacturer, contracted with Gatan, a spectrometer manufacturer, to use...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

Legislative Update: New Non-Compete Restrictions for Physicians

Continuing my review of new employment-related bills is a measure that limits the use of non-compete agreements for doctors. Anyone who tracks bills knows that the name on the bill sometimes doesn’t match the content....more

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