Non-compete Agreements : Employment Law

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Ensuring Fair Competition When A Former Employee Has No Restrictive Covenants: Common Law Protections for Employers
Davis & Gilbert LLP
Does the company have any protection from unfair competition by the executive even though she never signed a restrictive covenant? Absolutely. This article discusses the company's rights and protections. But first, the former employer needs to understand the executive's rights.
To Fire or not To Fire: Practical Tips Related To Discharge and Disclosure of Information about Terminated Employees
Eric T Levine of Paul, Hastings, Janofsky & Walker LLP
"Discharged," "terminated," "adversely affected" - or the slightly less eloquent "canned," "booted," "deep sixe.
Managing Employment Issues in M & A Deals
Kathlyn E. Noecker of Faegre & Benson LLP
This article reviews important employment considerations companies should consider when acquiring or merging with another company.
Physician Non-Compete Agreements, June 1999
Donald Peder Johnsen of Gallagher & Kennedy, P.A.
We wanted to let you know about an important recent decision by the Arizona Supreme Court concerning the enforcemen.
Doctors' Rights Protected by Non-Compete Ruling
Gallagher & Kennedy, P.A.
While medical clinics long have protected patient bases with physician non-compete agreements, a recent Arizona Sup.
Non-Competition Restrictive Covenants and Territorial Limitations
Steven Macklin Mills of Steven M. Mills, P.C.
It is important to keep abreast of the ever-evolving law pertaining to non-competition restrictive covena.
Protecting your Business through Noncompetition and Confidentiality Agreements

This article discusses the reasons why an employer should carefully draft and require each employee to sign an noncompetition and confidentiality agreement.
Michigan Supreme Court Rules That Tuition Contracts for On-The-Job Training Violate Wages and Fringe Benefits Act
Bodman LLP
The Michigan Supreme Court recently ruled that an employer violated the Wages and Fringe Benefits Act ("WF.
Recruiting an Employee without a Non-Compete Agreement from a Former Employer can Still be Harmful to Your Business HealthÃ‚Â…
Dykema Gossett PLLC
Employers who recruit high level managers, sales, or technical personnel from competitors typically assume that, un.
Labor & Employment Update--May/June 1998
Brobeck Phleger & Harrison LLP
This special labor and employment report focuses on the impact of the Y2K bug will have in an employment context.
Investment Manager's Non-Compete is Litigated
Paul, Hastings, Janofsky & Walker LLP
Non-compete clauses are common in investment adviser employment contracts and partnership agreements. Althoug.
Potential Radical Expansion of New Jersey's "Whistleblower" Statute
John E. MacDonald of Stark & Stark
In the recent Appellate Division decision in Karol Maw v. Advanced Clinical Communications, Inc., et al. (Appellate Division Docket No. A-3606-01T3) (April 16, 2003), the court appears to have dramatically expanded the scope of the New Jersey Conscientious Employee Protection Act ("CEPA") N.J.S.A. 34:19-1, and may have created a significant problem for employers that generally require the execution of restrictive covenants by their employees.
Bankruptcy Court Rejects Unfunded Benefits Clause In Employment Contract
Tydings & Rosenberg LLP
In December 1996, the U. S. Bankruptcy Court for the District of Maryland ruled in Maryland Paper Box Company that .
Hiring with Confidence
David T. Barton
The single best predictor of an applicant's potential performance as an employee is the strength of the applicant's references. Yet many Arizona employers fear that providing honest reference information may result in defamation lawsuits.
Occasionally the Best Contracts Are not in Writing
Meislik & Meislik
Most attorneys (ourselves included) normally counsel their clients to keep good records and document as much as the.
Court Upholds Covenant Not to Compete

On June 4, 1998 the United States District Court for the District of Maryland upheld a covenant not to compete cont.
Non-Compete Agreements Take a Toll on Specialized Technical Workers, MIT Researcher Finds
MIT Sloan School of Management
By allowing employers to block workers from switching jobs, states may hinder development of high tech regions.
Courts Affirm Employers’ Right to Require Non-Compete Agreements

Employers can take some comfort in the fact that the New Jersey, Oregon, Vermont and Wisconsin Supreme Courts, the United States Court of Appeals for the Seventh Circuit, and a Connecticut Superior Court have emphatically affirmed the right of employers to terminate employees for refusing to sign a non-compete agreements. Each of these courts have reasoned that the essence of an at-will relationship is the right to fire an employee for any reason, including for refusal to sign a non-compete.
Gear Up Your Company?s Non-Compete Agreements
Ryan Griffitts
This article lays out some questions that will help you determine whether there may be some problems with your non-compete covenants.
What goes into an Employment Contract. . . And Why
Larkin Hoffman Daly & Lindgren Ltd.
Most people work without a written employment contract because they don''t need oneÃÂthere is no point in drafting a contract when the deal is the usual exchange of services for a bi-weekly salary plus standard benefits. When the arrangement varies from the plain vanilla "employment at will" relationship, however, one or both of the parties may want a written agreement.
New Jersey Supreme Court Holds That Employee's Termination For Refusing To Enter Into Non-Compete Agreement Is Not Actionable Because It Does Not Violate Public Policy

In an important decision favoring employers, the New Jersey Supreme Court held that an employee did not have a cause of action for unlawful retaliatory discharge under the New Jersey Conscientious Employee Protection Act , even though she was fired for refusing to enter into an agreement containing post-employment restrictions. While New Jersey employers may still condition an employee's continued employment on his or her agreement to be bound by post-employment restrictions, Maw reaffirms that employers must continue to be cautious in drafting such agreements.
Noncompetition Agreements--New Trends and Old Dilemmas
Steven C. Lanza of Onebane Law Firm
From a litigation standpoint, it seems that noncompetition agreements have recently eclipsed almost every other typ.
The Human Face of Fraud
of Kroll Lindquist Avey
Dan Kerr had a towering ego. That was one of the reasons he was the top salesperson with Forrest Machinery Ltd., a medium-sized company that sold heavy equipment in Northern Ontario . But that same egocentricity was also the source of his downfall subsequent to an investigation of suspected wrong-doing at the company that had employed Kerr for almost two decades.
Employment Issues For Start-Ups
Marla Grossman
A summary of important labor and employment issues an employer should be aware of in operating a business.
Enforceability of Non-Compete and other Restrictive Covenants In Employment Agreements
David L. Turner
Many employers utilize employment contracts which contain restrictive covenants in order to protect their .
Will Your Non-Compete Agreement Withstand a Court Challenge
Douglas M. Kennedy
Non-compete agreements have become more common in the workplace. A recent Franklin County Court of Appeals decision should have businesses reviewing these documents to make sure they will withstand scrutiny from the court system. In a case involving Midwestern Auto Group (MAG) and a former salesman, John Curran, the Court concluded that unless an employee possesses confidential or proprietary documents or trade secrets, or uses that information to solicit the former employer' customers, non-compete agreements will be difficult to enforce in court
Will Non-competes Be Enforced in the Internet Age?
Brian D. Carlson of Weil, Gotshal & Manges LLP
This article reviews recent case law relating to the enforcement of restrictive covenants and provides several observations that an employer should observe in drafting a covenant not to compete.
What You Should Know About Non compete Agreements
Mansfield, Tanick and Cohen, P.A.
Noncompete contracts are being used with increasing frequency by businesses in Minnesota and elsewhere. This is p.
Enforcing Noncompetition Agreements Across State Lines: The California and Texas Problems
Maslon Edelman Borman & Brand, LLP
As technology continues to advance protection of employers' trade secrets and good will has become increasingly more important. An ever-increasing number of employers now use written noncompetition agreements to protect their legitimate interests in their intellectual property, their trade secrets and their goodwill. While noncompetition agreements are disfavored in law because they constitute restraints of trade, they can be enforced with relative ease in the majority of states if certain fundamental requirements-which differ only slightly from state-to-state-are satisfied.
Non-Compete Agreements After An Acquisition: Are They Enforceable?
Richard M. Jordan of White and Williams LLP
Many companies view their key executives and sales people as assets to be preserved and maintained, recognizing that these individuals add value to the organization. In an attempt to keep those assets out of the hands of competitors, companies often turn to non-compete agreements. When companies are acquired, however, a question arises as to whether or not the acquiring company will be able to benefit from these covenants not to compete.
Massachusetts: Material Change in Employment Relationship Could Invalidate Prior Restrictive Covenant
Christopher J. Perry,Laurie Drew Hubbard and Erin M. Reid 1 of Littler Mendelson, P.C.
For years, commentators have viewed Massachusetts as neutral territory for the enforcement of noncompete agreements. An employer’s need to protect its most important assets, including the company’s strategic vision, customer base, and trade secrets, has been delicately balanced against employees’ desire to shift alliances in an increasingly transient work environment. Whereas some states, such as New York, passively accept noncompetes, other states are outwardly hostile.
Rollups: Merger Wave of the Millennium?
Tydings & Rosenberg LLP
In the last few years, owners of closely-held businesses in many industries have been courted by a rollup team that.
Employment Contract Primer

In the past five years, more top level executives are demanding an employment agreement before taking a positi.
One-Year Non-Compete Too Long For Web
Rosenman & Colin LLP
iting the pace of innovation in the information technology industry, the Southern District of New York has refused to enforce a restriction in an employment agreement that would have prevented a Web site content manager from working for his new company for one year, stating that, in the Internet industry, a one year non-compete "is several generations, if not an eternity".
Executive Termination
Jennifer Pink 0 of Lexpert
"Nasty, brutish and short" was how the 17th century English philosopher Thomas Hobbes described civil life without the stabilizing presence of a monarchical system.
Electronic Theft and Espionage: Federal Law Provides a Remedy

The federal Computer Fraud and Abuse Act (“Act”), 18 U.S.C. § 1030, gives employers a helpful tool to use against former employees who wrongfully use information from the employer’s computer system to assist competitors in competing unfairly. As the Third Circuit recently noted “[e]mployers . . . are increasingly taking advantage of the [Act’s] civil remedies to sue former employees and their new companies who seek a competitive edge through wrongful use of information from the former employer’s computer system."
Business Advice for Residents and Fellows
Bruce D. Armon of Saul Ewing LLP
After the completion of medical training, many senior residents and fellows embark upon the initi.
Yes, You Can Still Prohibit Guns in Your Workplace
Tamara Hjelle Olsen of Gray Plant Mooty
Minnesota's recently-passed concealed weapons law raises a host of questions for Minnesota employers. Among the most pressing are whether Minnesota employers are still permitted to prohibit guns in the workplace, and whether new gun safety policies should be adopted. Unfortunately, until Minnesota courts have had a chance to interpret the new law, few answers will be known with absolute certainty.
Five Things to Remember in Florida Non-Compete Injunctions
Ryan D. Barack of Kwall, Showers & Barack, P.A.
There are now different legal standards governing the enforceability of restrictive covenants in Florida, depending upon the period of time in which they were executed. Since the legal standards are quite different, they create "traps for the unwary."
Noncompetition Agreements

The desire of employers to keep their employees from competing with them has been a source of much litigation.
New Florida Statute on Restrictive Covenants
Rodger L. Hochman of Broad and Cassel
The Florida Legislature's recent passage of Section 542.33, Florida Statutes (the "Statute"), has once again swung .
Are Your Key Employees Signed In?
Motschenbacher & Blattner LLP
Good morning! You walk into your office just like any other day of the week. But today you find something different.
Employer's Use of Noncompetition Agreements
Fargarson & Brooke
The desire of employers to keep their employees from competing with them has been a source of much litigation..
Thanks, Boss. GoodbyeÃ‚Â…
Daniel C. Urban of Arter & Hadden LLP
Have you ever considered what effect the loss of a key employee to a competitor might have on your business. Don't think it will happen to your company? Think again. It will.
Issues Arising After a Shareholder-Employee Departure
Schneider & Onofry, P.C.
If a business is dissolving, then it must review all of its current contracts and make plans accordingly. Simply closing up shop and leaving others hanging is likely to lead to breach of contract claims. Contractual and/or fiduciary issues may also apply to the loss of certain individuals.
Non Compete Agreements In Iowa
Johnston, Joseph C. 1 of Joseph C. Johnston
The following information is general and is no substitute for obtaining the advice of a competent attorney.
Fraud In The Hiring Process
Songstad & Randall
A California court has recently expanded an employer's liability for fraud in connection with representations made .
Trade Secret And Business Protection
Songstad & Randall
As a result of technological advances and greater employee mobility, many employers are growing increasingly .
North Carolina Employment Law-FAQs
Grafstein & Walczyk, P.L.L.C.
Q. I was recently let go from my job with a large corporation. I had no write-ups and was given no warnings.
How Not to Hire Employees from a Competitor
Paul J. Kennedy of Littler Mendelson, P.C.
A recent million dollar plus judgment highlights the importance of hiring people for their skills and not for their confidential business information especially when hiring employees working for direct competitors.
New Eleventh Circuit Ruling in Palmer & Cay Promotes Racing to the Courthouse in Noncompete Disputes
Scott McDonald of Littler Mendelson, P.C.
Employers with multi-state noncompete contracts may want to lace up their best pair of running shoes and get ready for a race. On April 1, 2005, the 11th Circuit issued an opinion in Palmer & Cay, Inc. v. Marsh & McLennan Companies, Inc., that some commentators are interpreting as an open door to forum shopping.
Cooley Alert: Non-Competes-Stock Option Forfeitures
Cooley Godward Kronish LLP
This alert reviews the Ninth Circuit's decision in International Business Machines Corporation v. Bajorek whereby the Ninth Circuit recently allowed the forfeiture of gains from vested stock options if a former employee fails to comply with a narrowly tailored non-competition provision.
Increasing Mobility of Technical Employees Raises Intellectual Property Stakes
Margaret K. Savage of Briggs & Morgan
Some of your company's most important assets may be locked in the minds of key technical employees. If you do no.
I'm Out of HereÃ‚Â…
Todd J Katz of Schlossberg, LLC
We are all faced at one time in our business life when our key employee says "I'm leaving to work for a competitor".
Non-Competition Agreements

Many of our clients have inquired in recent years whether non-competition agreements are actually legally binding..
Enforceable Covenants Not To Compete
Wayne S. Moskowitz of Maslon Edelman Borman & Brand, LLP
Employers frequently require their employees to execute employment agreements that contain covenants not to compete. Each state has its own laws regarding whether such covenants may be enforced, and under what circumstances. Minnesota's law is fairly consistent with the laws of most other states.
Protecting Trade Secrets -- Part II (Using Non-Compete Agreements)
Duff, White & Turner, LLC
In last month's legal alert memo, we explained how employers can prevent trade secret theft by requiring .
Covenant Not to Compete Enforced by Preliminary Injunction
Stefanie K. Longhofer of Honigman Miller Schwartz and Cohn LLP
Plaintiff, a company in the business of selling computer bar code systems with accounts in 48 states, sued Defendan.
Protecting Your Business Against the Renegade Employee
Stein, Sperling, Bennett, De Jong, Driscoll & Greenfeig, P.C.
At one point or another, nearly all businesses will be forced to deal with issues such as theft, workplace violence.
New Jersey Law Favors Free Competition by Former Employees in the Absence of a Valid, Written Restrictive Covenant, But an Employee may not Violate His Duty of Loyalty by Soliciting Customers or Co-Em
Schiffman, Abraham, Kaufman & Ritter, P.C.
Under New Jersey law a former employee may properly and legally compete with his former employer, in the absence of.
Avoiding An "Implied" Employment Contract Or Drafting A Favorable One: A Primer
Nancy A. Newark of Burns & Levinson LLP
Employers sometimes inadvertently create employment contracts. This type of contract is implied by the employer’s actions and is binding on the employer - though it may be difficult to prove. Because an implied employment contract may arise during any communication with a potential new hire or employee, it is essential that all employers consider the implications and possibility of creating a binding contract when communicating with potential and existing employees.
Employment Law Commentary
Lisa Frank of Morrison & Foerster LLP
This article summarizes the Walia v. Aetna, Inc decision whereby a San Francisco Superior Court ruled it is a violation of California public policy to terminate an employee for refusing to sign a non-compete agreement.
The Entrepreneur's Legal Dilemma: When And How To Consult An Attorney?
Brownstein Nguyen & Little LLP, Attorneys At Law
Introduction. Legal issues represent only some of the many problems facing entrepreneurs and start-up companies..
Non-Compete Agreements Protect Competitive Edge, TOO
Duff, White & Turner, LLC
A recent column about preventing trade secret theft in today's competitive business environment focused on draftin.
Wisconsin Supreme Court Strikes Down "No-Hire" Provision Governing Temporary Employees
Jeffrey O. Davis and Jeffrey Morris of Quarles & Brady LLP
”No hire” agreements have come under scrutiny because of their effect on individual employees, who are essentially boundÃÂor at least greatly affectedÃÂby a contract to which they were never a party and which they may not have even known existed.
Noncompete Agreements
Thomas G. Smart of Onebane Law Firm
In Moores Pump and Supply, Inc. v. Laneaux, 727 So.2d 695 (La. App. 3d Cir. 1999), the Louisiana Third Circuit Cour.

Non-compete Agreements

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