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It has been ten years since a Jimmy John’s employee leaked a copy of a noncompete agreement that the company required employees (including store-level employees such as sandwich makers and delivery drivers) to sign. The noncompete restricted employees from performing any services for a business which derived more than 10% of its revenue from selling […]
Non-compete agreements, often used to protect business interests by restricting the ability of employees to enter into competition with their former employers, have been a staple in employment contracts for years. As detailed in our previous discussion on non-compete agreements published on March 4, 2024, these agreements are designed to safeguard trade secrets and investments […]
Protecting against intellectual property theft and unauthorized disclosure of confidential business information has always been an important practice for businesses, yet the continuing evolution of the labor market post-COVID has increased the risk of intellectual property loss due to employee mobility and remote work. Employers have traditionally turned to noncompete, nonsolicitation, and confidentiality agreements to […]
Massachusetts enacted significant noncompete reform in 2018. Under Massachusetts law, noncompete agreements entered after October 1, 2018, can only be used and enforced if they comply with the standards of the Massachusetts Noncompetition Agreement Act (MNAA).
We’re hearing from business clients what we’re all seeing in the headlines: Employees are hard to hire and retain these days. “The Great Resignation” is a new phrase used to describe the unprecedented level of employee movement in the past year. A natural consequence of this phenomenon is that noncompete agreements are being tested now […]
On July 14, 2022, the Wisconsin Court of Appeals ruled in favor of a former employee in a dispute over whether two uniquely worded restrictive covenants against him violated Wisconsin law. The case presents new considerations regarding what employers can and cannot include in noncompete clauses with severed employees.
Noncompete agreements between employers and their employees traditionally are governed by state law. But that didn’t stop the Antitrust Division of the U.S. Department of Justice (DOJ) from recently filing a statement of interest encouraging a Nevada state court to consider federal antitrust principles to invalidate noncompete agreements between a large medical group and its physician-employees.
Lawmakers and courts continued to demonstrate hostility toward noncompete and no-hire agreements in 2021. The activity underscores employers’ need to stay current on the diverse state-specific limitations governing restrictive covenants, new federal activity in the area, and ongoing case law developments.
Washington’s new law significantly restricting employers’ use of noncompetition agreements takes effect January 1, 2020. In addition to limiting the use of noncompetes, the law provides for generous damages when an individual successfully claims a noncompete is unenforceable.
A new law in North Dakota slightly expands exceptions allowed under state law related to contractual noncompete provisions.