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

North Carolina Court Again Narrows Scope of Post-Employment Restrictions

Last week’s EmployNews reported a Fourth Circuit Court of Appeals decision applying North Carolina law that invalidated an employment non-competition clause due to what it viewed as the overreaching scope of the restrictions....more

Agreement Prohibiting Solicitation of Employees by Former Employee may be Unenforceable

A recent decision from the Wisconsin Court of Appeals has raised serious questions regarding non-solicitation agreements that are often included as part of an employment agreement or severance agreement. A non-solicitation...more

Restrictive Covenants in Michigan: A Cent, a Peppercorn, or Continued At-Will Employment

A business dispute in Michigan may provide insight into the consideration required to support a noncompete contract restricting future employment. Innovation Ventures, LLC v. Liquid Manufacturing, LLC, No. 150591, Michigan...more

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

Wisconsin Court Finds Anti-Poaching Agreements to be Unenforceable

Analyzing an anti-poaching agreement as a non-compete agreement, a Wisconsin Court of Appeals has confirmed that a former employee’s agreement not to solicit other employees may be void and unenforceable if it is too broad....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

Don't Use Form Non-Compete with North Carolina Employees

Most states allow judges to “reform” provisions of employee non-competition agreements deemed overbroad. For example, if the court believes that a 100-mile territorial restriction is too broad, it can reduce the radius to 50...more

State Attorneys General on the Attack Against Noncompete Overuse

Too much of a good thing can be bad – a maxim that some employers have historically ignored by requiring entire workforces, including rank-and-file employees, to submit to post-employment noncompete obligations as a condition...more

A Few Things To Avoid When Drafting A North Carolina Covenant Not To Compete

The Business Court closely examined a set of restrictive covenants last week in Sandhills Home Care,, LLC v. Companion Home Care-Unimed, Inc., 2016 NCBC 59. This decision collects a number of North Carolina Court of Appeals...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

Massachusetts Non-Compete Reform: Maybe Next Year

Once again, the Massachusetts legislature took on non-compete reform, and once again, came up empty-handed. On July 31, 2016, the legislature adjourned without reaching a compromise to alter the state’s non-compete landscape....more

A Month in UK Employment Law - August 2016

News & Legislation Update - The UK votes to leave the EU - We could not write a roundup of news stories from the UK without referencing the UK's vote to leave the EU. The so-called "Brexit" has created...more

Nevada Confirms Its Restrictive Covenant Law, But Rejects Blue Penciling

In the first decision to reach the Nevada Supreme Court on whether state district courts may modify or “blue pencil” non-competition agreements, the high court has concluded that doing so would violate Nevada law. Golden Road...more

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

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