Restrictive Covenants

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

Residential Planned Communities and Condominiums: Changing the Rules After the Game has Begun

As Americans, it is in our nature to always look for ways to improve anything and everything affecting our lives, including the cars we buy, the food we eat, and yes, even the organizations to which we belong. It's no wonder...more

Shhhhh! Obama Signs the Defend Trade Secrets Act

Remember when you, as an employer, asked an attorney to prepare a contract containing a covenant not to compete? Or maybe you, as an employee, had questions about such a covenant. Or, perhaps, an attorney prepared a...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

Burr Alert: What The New Federal Trade Secrets Law Means For Employees

The scope of the federal Defend Trade Secrets Act ("DTSA") enacted on May 11, 2016 extends well beyond employment issues. However, its impact on an employers' asset protection and enforcement program is quite significant....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

Restrictive Covenants: What Are They And Why Should You Care?

Restrictive covenants have a significant and substantial impact on the use and value of property; yet they are often ignored entirely or not considered until the end of the due diligence period before purchasing the property....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

If Your Business Wants To Reap The Full Benefits Of The New Federal Trade Secret Misappropriation Law, You Need To Update Your...

Employers looking to further protect their ever-valuable trade secrets are welcoming the arrival of the Defend Trade Secrets Act ("DTSA"), a new federal law permitting trade secret owners to file misappropriation claims in...more

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