Restrictive Covenants Non-Compete Agreements

News & Analysis as of

So You Have a 10-Page Single-Spaced Alabama Noncompete Agreement, Now What?

Employees in Alabama, like in many other places, often are required to sign employment agreements, most of which contain future restrictions on certain activities. The menu items for these agreements usually include covenants...more

New LLC Is Not Delivered By Sale Membership Interests

Readers of this blog should be well aware of California’s general antipathy to covenants not to compete. See links below. Other jurisdictions, however, are less averse. Assuming that a covenant not to compete is...more

Alabama’s New Non-Compete Statute: Are You Ready For New Year’s Day?

Those involved in drafting, negotiating, or litigating covenants-not-to-compete in Alabama have long known that Alabama’s statute books seldom provide ready answers on this particular topic. The text of current Alabama Code...more

There's A Difference Between "Confidential And Proprietary Information" And A Trade Secret

I can't remember the last time that the Business Court granted a motion opposing the designation of a case as a mandatory complex business case. And since the Business Court Modernization Act went into effect in October...more

Non-Competes & Disintermediation (Cutting Out the Middle Man) – A Recent Case from NJ

A recent case out of the District of New Jersey addresses disintermediation as a legitimate business interest in the non-compete context. Disintermediation is just a technical term for cutting out the middle-man. Let’s take...more

Competing After Employment (Part 2)

A few weeks ago, Jawbone, a fitness tracking hardware and software maker, sued its arch-rival Fitbit, alleging that Fitbit lured its employees away to obtain access Jawbone’s confidential information and product plans. How...more

Democratic Senators Propose Federal Legislation to Ban Use of Non-Compete Agreements with Low-Wage Employees and to Require...

U.S. Senators Al Franken (D-Minn.) and Chris Murphy (D-Conn.) proposed federal legislation last week to ban the use of non-competes for low-wage employees and require companies to provide advance notice before asking...more

MOVE Act Introduced; Non-Compete Agreements Would Be Limited, if Passed

While I normally make my year-end reflections at, well, year end, I can’t help but take this moment to see the big picture: We’re hearing an awful lot about restrictive covenants. These covenants — often in the shape of...more

Obligation to Enforce Arbitration under FAA Policy Trumps Motion to Prevent Enforcement of “Clearly Void” Non-Competition...

On May 20, 2015, Judge Dudley H. Bowen of the United States District Court for the Southern District of Georgia, entered an order denying the Motion for Preliminary and Permanent Injunction filed by one of the plaintiffs...more

Wisconsin Supreme Court Rules Continued Employment is Lawful Consideration to Support a Restrictive Covenant

Wisconsin has firmly joined the majority of jurisdictions in the United States that hold that continued employment constitutes lawful consideration sufficient to enforce a restrictive covenant with a current at-will employee....more

Court Enjoins Outpatient Primary Care Physician’s New Employment as a Hospitalist

A Pennsylvania appellate court recently granted an employer’s request for enforcement of a restrictive covenant against a hospitalist, finding that his departure from the primary care office setting did not affect the terms...more

Recapping Major Non-Compete News from Around the Nation

..New Mexico has passed a new law that limits physician non-compete agreements. Although the law places some limitations on restrictive covenants for doctors, it is not an outright ban of such restrictions (of the...more

The Multi-State Non-Compete Agreement “Drilled Down”

Our February article addressed the options available to the multi-state employer attempting to design its non-compete agreements within the “tangled mess” of the various state laws applicable to agreements for employees who...more

State Legislatures Reconsider Noncompetes

With companies’ use of noncompetes on the rise, whether to ban, restrict or encourage noncompetes has garnered attention from legislatures across the country. Legislatures in four states – Massachusetts, Michigan, Washington...more

Class Action Attempt to Void Jimmy John's Non-Competes Goes Stale

Sandwich chain Jimmy John's has been in the news lately because of non-compete agreements that employees of its franchisees sign. This is not necessarily good news for Jimmy John's, but it does underscore some interesting...more

Meritas Capability Webinar - California’s Prohibition Against Non-Compete Agreements (B&P Code § 16600), the Protection of Trade... [Video]

Many attorneys representing company’s in or from other states (freedom of contract jurisdictions) believe a well drafted covenant not to compete can be an employer’s best defense against competition from former employees....more

Noncompete Law in France—Payment of a Noncompete is Required During Garden Leave

In France, a valid noncompete clause in an employment contract must provide for the payment of financial compensation to the departing employee, as long as the employee remains bound by and complies with the clause’s terms...more

Employer's "No Re-Hire" Provision May Violate California's Non-Compete Laws

Pretty much everyone knows that California courts do not favor covenants not to compete. We even have our own state laws that address this very issue (Business & Professions Code section 16600). But what about provisions in...more

Restrictive Covenants: The Employee Choice Doctrine Explained … Yet Again

The “employee choice” doctrine is one of those employment terms that is as misunderstood as “right to work,” “employment at will” and my personal favorite, “labor lawyer”. But a recent New York Federal court in IBM v Smadi,...more

Avoiding Litigation: Using Non-Compete Agreements to Protect Your Business Assets

In this presentation: - Enforceability of non-compete agreements and other restrictive covenants - Why using a form agreement is a bad idea - Using restrictive covenants as a proper shield -...more

Are Restrictive Covenants in Sale Agreements Enforceable?

The Supreme Court of Canada recently addressed the issue of the enforceability of restrictive covenants where the purchaser of a business offered employment to the business’s previous owners (Payette v Guay Inc. 2013 SCC 45)....more

Illinois Restrictive Covenants: The “Gray” Bright Line Regarding Sufficient Consideration

Illinois non-compete law continues to wend a circuitous path through the employment landscape, making it occasionally difficult for employers and employees alike to predict outcomes in these cases....more

Restrictive Covenants in the Construction Industry: An Often Overlooked and Underutilized Source of Protection

Restrictive covenants come in many forms; they can be stand-alone agreements, such as a confidentiality agreement, or they can be included in various types of contracts, such as noncompete or nonsolicitation provisions in...more

New York Court Refuses to Enforce Agreement's Covenant Not to Compete Where Employer Breached the Agreement First

The right to enforce a covenant not to compete may be lost when the employer first violates the terms of the same agreement, says a New York appeals court. In Fewer v. GFI Grp. Inc. et al., 124 A.D.3d 457, 2015 WL 176227...more

Illinois Court Rulings Vary on Consideration for Noncompetes

Recent decisions from the U.S. District Court for the Northern District of Illinois and the Illinois Appellate Court for the Third District (consisting of Bureau, Fulton, Grundy, Hancock, Henderson, Henry, Iroquois, Kankakee,...more

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