Restrictive Covenants

News & Analysis as of

Brave New World or California Dreaming? Governor Patrick Proposes Legislation Banning Non-Compete Agreements

At an economic development summit earlier today in Newton, Massachusetts, Governor Patrick stated that he will propose an economic growth bill that includes a prohibition on non-competition agreements that discourage workers...more

Revisiting Restrictive Covenants

Accounting firms often use post-employment restrictive covenants to prevent their clients and employees from being poached by departing partners and employees. As the number of accountants moving between firms has started to...more

What to Do When Your Client’s COO Becomes Your Competitor’s BFF

One of your most important clients just called. She reports that one of her senior sales people quit a few months ago, and she just learned that the sales person has joined a large competitor. Panicking, your client wants to...more

Properly Analyzing Breach of a NDA - Loftness Specialized Farm Equip., Inc. v. Twiestmeyer

The U.S. Court of Appeals for the Eighth Circuit has explained that under Minnesota law it is inappropriate to apply the test for the tort of misappropriation of trade secrets and confidential information when the issue is...more

Fairfax Circuit Court Strikes Down Noncompete as Overbroad, Offering Yet Another Lesson for Employers

On March 6, 2014, a Fairfax Circuit judge denied a preliminary injunction in a suit brought by Wings LLC to enforce a noncompete against two defector employees. In a letter opinion, Judge Bruce D. White said the noncompete...more

Protecting Your Value: The Importance of the Employee NDA

Where is your company’s value? If you are a young start-up company, it’s probably in ideas. Any new invention, new way of attracting business, new way of streamlining a process, or anything else “new” starts with an...more

Too “Obnoxious” to Enforce: New York Court Refuses to Apply Florida Law in Considering Restrictive Covenants

Florida MapRecently, a New York appellate court concluded that an employer could not rely upon a Florida choice-of-law provision in an employment agreement to enforce restrictive covenants against a former employee, even...more

Hiring Employees Who May Be Bound by Post-Employment Restrictive Covenants? Caution, Restrictions May Apply

Employers frequently want to hire talented employees who are bound by post-employment restrictive covenants (e.g., non-competes, or customer/employee non-solicitation covenants). Often, a plain reading of the prospective...more

Striking the Right Balance in a North Carolina Non-Compete Can Be Tricky

North Carolina companies who rely on non-compete agreements to protect their trade secrets and proprietary information may want to review their agreements in light of two recent court decisions....more

Will The Material Change Doctrine Reduce Your Ability to Enforce Your Non-Competes?

Consider this: An employee signs a perfectly reasonable non-compete/non-solicitation agreement at the inception of employment. The employee remains with the employer for ten years and during that period, receives several...more

Making The Hiring Process Work

In This Presentation: - Using Social Media in Hiring Decisions ..Scenario #1 - Hiring Employees with Restrictive Covenants ..Scenario #2 - Disparate Impact ..Scenario #3 - Federal...more

Considerations And Alternatives For Non-Compete Litigation

In This Presentation: - Introduction: ..Recently, The Amount Of Non-Compete Litigation Has Increased While Litigation Generally Has Decreased In Recent Years. Why? - Threshold Considerations Regarding...more

S.D.N.Y. Declines To Enforce No-Hire Agreement For Lack Of Protectable Interest

Reed Elsevier Inc. v. TransUnion Holding Company, No. 13-CV-8739, (S.D.N.Y. Jan. 8, 2014): A federal district court judge declined to enforce a no-hire agreement that would prevent the plaintiff’s former chief technology...more

Florida Business Litigation Update: “Confidential” Settlements Really Need to Remain Confidential

The vast majority of bona fide commercial cases end in settlement. It has become a generally accepted practice in commercial practices to include a confidentiality provision in settlements so as to ensure that the parties...more

The Advisor, Winter 2014 - Franchise Law Series: Part One

A “Pet Valu” franchisee in Ontario claimed that sales were declining, so the owner tried to escape her franchise agreement. After termination of the agreement, her husband established a competing “Pet Stuff” business nearby....more

Recent Fourth Department Decision Provides Guidance on the Enforceability of Restrictive Covenants

On February 7, 2014, the Appellate Division, Fourth Department, issued a significant decision regarding restrictive covenants. In Brown & Brown, Inc. v. Johnson, the plaintiffs terminated the defendant-employee and then sued...more

N.C. Business Court Weighs In On Enforcement of Restrictive Covenants Following Aquisition of a Company

Your company acquires another company through merger or stock purchase. You require the key employees of the acquired company to sign new employment agreements which provide for similar pay, benefits and job duties – but...more

Obtaining Enforceable Non-Compete Agreements: Timing And Geography Matter

Last month, a federal judge in Mobile, Alabama denied an employer’s request for a preliminary injunction seeking to stop that employer’s former employee from working for an alleged competitor. See Dawson v. Ameritox, Ltd.,...more

Protecting Your US Business From Unfair Competition by Former Employees Requires Timely and Prudent Action

The potential risks posed to a business by former employees are common to employers worldwide. Whether an employee is working in Jakarta, London or New York at termination of the employment relationship makes little...more

Three Ways in Which Enforcement of Non-Competition Agreements is Like Dating

In a prior blog post Three Issues In-House Counsel Should Raise Before Asking Employees To Sign Non-Competes, my co-publisher, Shep Davidson, provided suggestions to help in-house counsel ensure that non-competition...more

What Happens To A Covenant Not To Compete Upon The Sale Of A Business?

Be careful with covenants not to compete when you buy or sell a business. That's the lesson from Amerigas Propane, LP v. Coffey, 2014 NCBC 4, decided this week by Judge Jolly....more

Opinion: Bad Facts Make Bad Law, Especially in Non-Compete Cases

A non-compete agreement that prohibited a former sales rep from working for a competitor in any capacity, “even as a custodian,” is overly broad and unenforceable. At least that’s what a North Carolina Court of Appeals...more

New York Court Rules That Florida's Non-Compete Law Is "Truly Obnoxious"

A New York appellate court has ruled that Florida law on non-compete agreements is "truly obnoxious" to New York public policy and cannot be applied against a New York employee of a Florida-based company....more

What Can We Expect from this Connecticut General Assembly Session?

On February 6, 2014, the 2014 session of the Connecticut General Assembly began. Since this is an election year, the session will be relatively short, with adjournment scheduled for May 7, 2014. We can expect a plethora of...more

Sometimes Noteworthy Non-Compete Decisions Have No Non-Competes

As a non-compete litigator, I often scan the case reports looking for noteworthy non-compete decisions. In doing so, I look for the usual buzzwords of interest -- non-compete, trade secret, preliminary injunction, etc. But...more

156 Results
|
View per page
Page: of 7