News & Analysis as of

Massachusetts Federal Court Refuses to Transform Non-Disclosure Agreement into a Non-Competition Agreement

A recent decision from the Massachusetts federal district court serves as a good reminder to Massachusetts employers that courts are unlikely to view the breach of a non-disclosure/confidentiality agreement as justification...more

UWOA Exception Does Not Apply to Noncompete Agreements in Pennsylvania

The Pennsylvania Superior Court recently reaffirmed Pennsylvania’s longstanding position that employers must provide valuable consideration to employees who enter into noncompete agreements. In a case of first impression, the...more

Pennsylvania Appellate Court Finds Uniform Written Obligations Act Inapplicable to Covenants Not to Compete

In a case of first impression, the Pennsylvania Superior Court (one of Pennsylvania’s two state appellate courts) recently issued a ruling in Socko v. Mid-Atlantic Systems of CPA, Inc. (“Socko”), 1223 MDA 2013 (May 13, 2014),...more

Damages for Breach of a 12-Month Non-Compete Covenant

In Merlin Financial Consultants Ltd v Cooper [2014] EWCH 1196, the High Court awarded damages to an employer where the employee had breached a 12-month non-compete covenant in a business (rather than employment) agreement. ...more

Restrictive Covenants and the Cross-Border Employer

In most U.S. states employers are free to bind employees with restrictive covenants – which commonly take the form of post-employment restrictions on soliciting clients or employees – as a condition of employment. The wide...more

Pa. Superior Court: ‘Valuable Consideration’ Required for Employer Enforcement of Non-Compete Agreement

In a case of first impression, a Pennsylvania appellate court recently held that contractual language satisfying the state’s Uniform Written Obligations Act (UWOA)—that is, a statement that the parties “intend to be legally...more

Prepare To Consider Your Former Employees Your New Competition

There’s nothing that gets employers more fired up than a former employee jumping ship to join a competitor. But, in an effort to prevent such future angst, you’ve had your employees sign a non-compete. You’re golden, right?...more

A Case in Point: When and How to Use Non-Compete Agreements for Bank Executives and Key Managers

Consumer and commercial banks have interests that may legitimately be protected by a noncompete agreement. Such banks are in the business of using a sales force, direct mail, telemarketing, branches, the Internet and other...more

Pennsylvania Court Refuses to Enforce Non-Competition Agreement; Holds that Continued Employment Alone is Insufficient...

Most jurisdictions in the United States hold that continued employment constitutes sufficient consideration in exchange for entering into a non-competition agreement. A handful of jurisdictions however – Minnesota, North...more

Dispelling Employment Myths Series – Issue 2: Non-Compete Agreements

Ever play the game telephone? It’s a game in which one person whispers something into the ear of the next person, and that person is supposed to whisper the same thing into the ear of the next person, and so on. When the...more

Pa. Superior Court Reiterates That Employers Have to Provide Additional Consideration When Obtaining Noncompete Agreements with...

The Pennsylvania Superior Court recently ruled in Socko v. Mid-Atlantic Systems of CPA, Inc., that employers cannot enforce noncompete agreements entered into after the employee has already commenced employment, unless the...more

Pennsylvania Non-Compete Update

The Superior Court of Pennsylvania reaffirms that restrictive covenants added to existing employment relationships must be supported by “valuable consideration.” Pennsylvania courts have long held that an employer...more

Pennsylvania Superior Court Confirms that Valuable Consideration Required for Non-Compete Agreement Entered Into After...

Through its decision in Socko v. Mid-Atlantic Systems of CPA, Inc., No. 1223, 2014 WL 1898584 (Pa. Super. Ct. May 13, 2014), the Pennsylvania Superior Court has confirmed that a restrictive covenant entered into after the...more

My Non-Compete, Your Salary: Words Of Caution For Business Owners And Employees

Without the ability to enforce it, a non-competition agreement can turn worthless, or ? perhaps far worse ? extremely expensive for an employer whose chooses to file litigation against a former employee. One area that can...more

Failed Attempts to Enforce Employee Non-Compete and Confidentiality Agreements: On Employees of Acquired Companies in North...

Non-competition and confidentiality agreements can serve as invaluable tools to safeguard against the loss of confidential and proprietary information through current and former employees. However, recent state and federal...more

What Happens at Work Stays at Work – The California Employer’s Approach To A National Program for Restrictive Covenants and Trade...

In This Presentation: The California Landscape: A Refresher - Post-Termination Non-Competes – Unenforceable under Bus. & Prof. Code §16600 and Edwards v. Arthur Andersen – Other jurisdictions may...more

Massachusetts Governor Proposes Banning Non-Compete Agreements

On April 10, 2014, Massachusetts Governor Deval Patrick introduced an economic development package that includes a law barring non-compete agreements in the state. Patrick says that the measure would permit the free flow of...more

No Non-Compete = Public Ridicule?

We all know that a well-drafted non-compete agreement is necessary to protect a company’s customer relationships and confidential information when an executive jumps ship. What you might not have considered is that an...more

Pennsylvania Employers Consider This: Continued Employment Alone Is Not Sufficient Consideration for a Noncompetition Agreement

Pennsylvania remains one of the few states that still require “new” consideration in order for an employer to bind an existing employee to a noncompetition agreement. Not only does the consideration have to be new, it must...more

Governor Patrick Proposes Bill to Ban Certain Non-Competes in Massachusetts but Preserve Enforceability of Other Restrictive...

Last week, Massachusetts Governor Deval Patrick proposed legislation that would ban certain non-competition provisions in agreements with employees and independent contractors. Certain other important restrictive covenants,...more

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

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

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

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