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Non-Compete Agreements

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 -

Suing Your Employee? Don't Try This at Home

by Faegre Baker Daniels on

In Petter v EMC Corporation [2015] EWCA Civ 828, a U.K. subsidiary and its U.S. parent company were prevented by the English courts from continuing non-compete proceedings against an employee in the court of Massachusetts....more

[Webinar] 2017 National Year In Review: What You Need to Know About the Recent Cases/Developments in Trade Secrets, Non-Compete,...

by Seyfarth Shaw LLP on

In Seyfarth’s first installment of its 2018 Trade Secrets Webinar series, Seyfarth attorneys will review noteworthy cases and other legal developments from across the nation over the last year in the areas of trade secrets...more

Consider This – Minnesota Court Of Appeals Again Requires Proof Of Additional Consideration For Non-Compete Agreements For...

by Jackson Lewis P.C. on

In October and November of this past year, we wrote about two Minnesota court decisions – Mid-America Business Systems v. Sanderson et al., Case No. 17-3876 (Dist. Minn. Oct. 6, 2017) and Safety Center, Inc. v. Stier, Case...more

New Hampshire, Pennsylvania, Vermont May Restrict Use Of Non-Compete Agreements In Employment

by Jackson Lewis P.C. on

Proposals to restrict the use of non-compete agreements in employment have been introduced in New Hampshire, Pennsylvania, and Vermont. This appears to be the continuation of a trend that started nearly a year ago. On...more

In The Weeds: A Close Inspection Of The Massachusetts Legislature’s Garden Leave Push

by Jackson Lewis P.C. on

The Massachusetts Legislature has spent the past several years seeking to regulate the use of restrictive covenant agreements in the Commonwealth. Despite repeatedly falling short in that initiative, the 2017 legislative...more

Seventh Circuit Finds Five-Year Sale-of-Business Noncompete Agreement Valid

In E.T. Products, LLC v. D.E. Miller Holdings, Inc., the Seventh Circuit Court of Appeals recently held that noncompete agreements signed by sellers of a business were enforceable under Indiana law, but the sellers did not...more

RESTARTING THE CLOCK: Court Determines that Prohibition on Competition Under Injunction Commences From Date of Order as Opposed...

by Cohen & Grigsby, P.C on

Resolving a nettlesome issue in restrictive covenant litigation, the Pennsylvania Superior Court recently held that the amount of time a former employee is prohibited from competing with his former employer under an...more

New Year’s Resolution Series – Ringing Your Post-Employment Covenants into the New Year

Many state legislatures spent 2017 tinkering with post-employment covenants. Given the growing trend to legislate locally and the employee mobility issues that seem to nag every employer, we thought the New Year would be a...more

Federal Court Interprets Florida And Pennsylvania Law To Endorse Protection Of Salon Services Company’s Customer Relationships And...

by Jackson Lewis P.C. on

In states that permit the enforcement of non-compete and other restrictive covenant agreements against former employees, companies must still demonstrate that the restrictions are designed to protect a legitimate business...more

Guide To Employee Non-Compete Agreements in Europe, Middle East and Africa

Business practices are changing. Markets are becoming more global and employees are on the move around the world. Employees are key assets driving sales, productivity and profit over different markets. It is therefore vital...more

Pennsylvania Legislature Joins the Trend to Limit Restrictive Covenants

On November 27, 2017, Pennsylvania became the next state to join the national trend to limit the use of restrictive covenants when a bill was introduced in the Pennsylvania House that would ban non-competition covenants in...more

Non-Compete Legislation Update: Minnesota Remains Among States that Require Employers to Provide Advance Noticed of any...

by Nutter McClennen & Fish LLP on

Two recent cases reaffirm that Minnesota remains among the small, but growing, list of states that require employers to provide advance notice of any non-compete to a potential future employee prior to the commencement of...more

Franchisees Lose Bid To Vacate Arbitration Award Enforcing Non-Compete Clause Despite Claim That Arbitrator Manifestly Disregarded...

by Carlton Fields on

A set of former franchisees are prohibited from violating the terms of a non-compete clause with franchisor Wild Bird Centers of America (“WBCA”) for two years after the Fourth Circuit recently upheld the denial of their...more

Pushing The Envelope: Eight Circuit Seals The Fate Of Envelope Company’s Trade Secret Claims

On December 8, 2017, the Eighth Circuit rejected trade secrets and other claims related to allegedly stolen customer lists. Applying Missouri state law, the federal appellate court continued the Show-Me State’s tradition of...more

New Jersey Legislature Wants to Limit Restrictive Covenants

In keeping with the national trend limiting the use of restrictive covenants, in November 2017, the New Jersey Senate introduced SB3518, a bill setting forth sweeping restrictions that would limit the enforceability of...more

Covenant Not to Compete/Landfill Gas Services: Federal Court Addresses Request for Preliminary Injunction

Like many service industries, conflicts sometimes arise between competitors in the environmental service industry segments. A federal district court, Western District, North Carolina (“Court”) addressed in a September 29th...more

Tennessee Court of Appeals Finds that Former Employee Breached Non-Compete Agreement Through Actions of His Subordinates

by Butler Snow LLP on

In November 2017, the Tennessee Court of Appeals upheld a Nashville trial court’s determination that a former employee violated his noncompete agreement by managing employees who solicited competing business in the restricted...more

New Jersey Proposes to Drastically Restrict the Use of Non-Compete Agreements

Last month, the New Jersey State Senate introduced Senate Bill 3518 (the “Bill”), which, if passed, will severely restrict the use and enforceability of employee non-compete agreements in the state of New Jersey. Most...more

New Jersey Bill Would Limit Non-Compete Agreements

by Jackson Lewis P.C. on

A bill in the New Jersey Senate, Senate Bill 3518 (“SB 3518”), and an identical companion bill in the New Jersey Assembly (Assembly Bill 5261), would significantly curtail the use of non-compete agreements in New Jersey. In...more

FRANCHISEE 101: All in the Family

by Lewitt Hackman on

Some creativity can help in passing a former franchised business to the next generation, particularly if the franchisor has no part in the franchisee's succession plan. A federal court in Nebraska preliminarily enjoined...more

WPI State of the States: Lawmakers Trade Jostling Bills for Jingle Bells

by Littler on

With the holidays in full swing, state legislators across the country are enjoying a bit of a lull. December traditionally marks the calm before the storm, as most legislatures are out of session and will reconvene in...more

Massachusetts Once Again Is Considering Enacting Comprehensive Noncompete Legislation

For nearly a decade, Massachusetts legislators have considered various bills aimed at regulating the use of noncompetition agreements in the commonwealth. Noncompetes currently are governed by Massachusetts case law which,...more

FRANCHISOR 101: Injunction Bottleneck

by Lewitt Hackman on

A restaurant franchisor, World of Beer Franchising ("WOB"), recently lost an appeal to enforce a post-termination restriction against a franchisee launching a competing business. Both the trial and appellate court ruled...more

Is A Non-Compete Agreement In Connection With The Purchase And Sale Of A Family-Owned Business Enforceable?

by Murtha Cullina on

In connection with the purchase of a family-owned business, the buyer may seek a non-compete agreement from the selling owners and certain family member employees. Such agreements are intended to protect the buyer from a...more

Non-Compete and Trade Secret Law in Utah: What’s Changed, What Hasn’t Changed and How to Prepare for What’s Ahead

by Payne & Fears on

The general rule in the United States has historically permitted non-competition agreements when they are reasonable in time and geographic scope. California has been the leading exception. Business and Professions Code...more

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