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

Employers Should Keep An Eye On the Non-Compete Reform Movement

Employers who require all employees to sign a form non-competition agreement regardless of the state in which the employee is located or the type of work performed by the employee should think twice before doing so. Recent...more

Indiana Court of Appeals Rules on Irreparable Harm, Laches, Extension Clauses, and More in Recent Restrictive Covenant Case

The Indiana Court of Appeals recently issued a restrictive covenant ruling addressing several significant issues. On November 30, 2016, in Hannum Wagle & Cline Engineering, Inc. v. American Consulting, Inc., the Indiana Court...more

Texas Court of Appeals Finds Noncompete Agreement Inapplicable to Former President’s Post-Termination Activities Due to the...

On October 27, 2016, the Fort Worth Court of Appeals affirmed a lower court’s order denying an application for temporary injunction seeking to enjoin Thomas Musgrave, the former president of Henry F. Coffeen III Management,...more

White House Calls for Restrictions to Curb Non-Compete Agreements

The White House has issued new information about its policy position on non-competes, including a call to action from President Obama to state and federal lawmakers to curb and limit non-compete agreements. ...more

Federal Attack on Non-Competes Likely Another Casualty of Election

As our readers are aware, employers can expect that the Trump administration will usher in a plethora of changes in terms of federal employment law policy and enforcement. One particular area in which the new administration...more

Merger does not invalidate noncompete, nonsolicitation covenants

When corporate mergers and acquisitions take place, the parties frequently ask, “What is the effect on the acquired company’s contracts?” That was the issue in a case involving noncompetition and nonsolicitation covenants in...more

THANKSGIVING EDITION [FROM THE ARCHIVES]: Court Protects Quizno’s Franchise Turkey Trade Secrets

This Thanksgiving, Trade Secrets Watch is serving a delicious tale about protecting trade secrets in a franchising relationship. In 1994, Quizno’s entered into a franchise agreement with Robert Kampendahl, an...more

One of Obama Administration’s Final Mandates: Non-Competes Should Be The Exception, Not The Rule

With all the hubbub over the Presidential election, it would not be hard to overlook some of the Obama administration’s final moves. Recently, the White House issued a call to action to state legislators to ban non-compete...more

DOJ, FTC Announce Plans to Criminally Prosecute Employers That Enter into Wage-Fixing or No-Poaching Agreements

In the fiercely competitive market for talent, human resources personnel and recruiters inevitably feel the competing pressures of offering compensation packages that are attractive to potential employees and keeping costs...more

White House Urges States to Reform Non-Competition Laws

On October 25, 2016, the White House published a State Call to Action on Non-Compete Agreements urging states to reform their non-competition laws. The call to action follows an earlier report from the White House which...more

White House Issues Call to Action Urging States to Curb Employers' Use of Non-Compete Agreements

The White House has entered the fray regarding employer use of non-compete agreements. While the Obama administration's recently issued "State Call to Action on Non-Compete Agreements" does not change current law applicable...more

Use of Non-Compete Agreements – Too Much of a Good Thing?

In case you missed the trend, several recent actions by the Obama administration have been aimed at enhancing employee rights. This pattern continued last week, when the White House issued a “Call to Action” and a report on...more

Antitrust Division Threatens Criminal Prosecution for Employment Practices: Antitrust Agencies Issue Joint Guidance on Employment...

Even in the absence of an agreement to fix compensation, simply exchanging competitively sensitive information could serve as evidence of an implicit illegal agreement. On October 20, the Department of Justice (DOJ) and...more

Winds of Change: the NLRB Challenges Confidentiality Agreements and The Obama Administration’s “Call to Action” to Prohibit...

This year, the federal government is challenging contractual provisions that regularly appear in private employment agreements. Both the National Labor Relations Board (“NLRB”) and the Obama administration have challenged the...more

Non-Competition Restrictions

On October 25, 2016, the White House published a “State Call to Action,” urging states to reform their noncompetition laws. The Call to Action follows an earlier report from the White House which concluded that noncompetition...more

New York Attorney General Answers White House’s Call: Promises Bill to Curb Non-Compete Use

On the same day that the White House released its “State Call to Action on Non-Compete Agreements,” encouraging states to adopt best practice policies in the enforcement of non-compete agreements, New York State’s Attorney...more

White House Speaks Out Against Non-Compete Agreements

This week the White House issued a “call to action” regarding the inclusion of non-compete agreements in employee contracts for certain categories of workers. The White House is encouraging the passage of new laws by the...more

The White House’s Call to Action: A Step in the Right Direction or a Bridge Too Far?

Fresh off of signing the Defend Trade Secrets Act, the White House released a report yesterday entitled “Non-Compete Reform: A Policymaker’s Guide to State Policies,” which contains information on state policies related to...more

To Compete or Not To Compete: White House Wants States to Ban Many Restrictive Covenant

Many companies have their employees execute non-compete clauses either in employment agreements or as separate documents. The justification for doing so is to protect the company from training workers who later leave and take...more

Lame-Duck Threat to Non-Competes

Not content to leave employers alone for the last few months of this term, the Administration wants to discourage, nationwide, the use of contract provisions that limit individuals from competing with their former employers,...more

DOJ and FTC Issue Guidance and Announce Policy Shift Regarding Antitrust Challenges to Hiring and Compensation Decisions

The U.S. Department of Justice’s Antitrust Division and the Federal Trade Commission jointly issued their Antitrust Guidance for Human Resources Professionals on October 20, 2016. The guidance addresses the applicability of...more

DOJ Toughens Stance on Certain Employment-Related Agreements Between Competitors - New Antitrust Guidance Threatens Criminal...

The Antitrust Division of the U.S. Department of Justice (DOJ) and the Federal Trade Commission (FTC) on Oct. 20, 2016, jointly released Antitrust Guidance for Human Resource Professionals, cautioning employers about...more

White House Issues State Call To Action To Ban Certain Non-Compete Agreements

On October 25, 2016, the Obama Administration issued a “State Call to Action on Non-Compete Agreements.” This call to action is part of President Obama’s Executive Order directing states to increase competition for workers...more

White House Issues State Call to Action on Non-Compete Reform

This week, the Obama Administration continued its ongoing efforts to curb what it considers to be the “gross overuse” of non-compete agreements. In a “State Call to Action,” the White House encourages legislatures to adopt...more

White House Pushes for Ban on Non-Competes

The enforceability of employee restrictions on competition has traditionally been up the states, with some, like California, largely banning such agreements, while others, like Texas, allowing them with reasonable...more

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