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.
By Antoine Aylwin and Edith Charbonneau Your employee quits his job and returns his smartphone. It contains information that shows he was scheming against you. What can you do with this? Could you use the e-mails found in the smartphone as evidence? This question was recently ruled upon by the Quebec Superior Court in Les […]
By Jeanine Poole New Hampshire employers using noncompete and nonpiracy agreements face new limits beginning July 14. That’s when House Bill 1270 goes into effect. The new law requires that every employer provide a copy of any noncompete and/or nonpiracy agreement required for a position to a current or potential employee before or concurrent with […]
By Chris Semerjian When Canadian employers are buying other businesses, the question of noncompetes often arises. But a noncompetition provision in an employment contract may not be the answer. According to the Quebec Court of Appeal in Guay Inc. c. Payette, 2011 QCCA 2282, you may be better protected by only having a noncompetition covenant […]
By Gulu Punia and Kyla Stott-Jess Signing a noncompete agreement can potentially provide some assurance that former employees will not start up or join the competing business across the street. In the absence of a noncompete agreement, employers often try to rely on their former employees’ fiduciary duties to combat competition. Unfortunately, Alberta’s Court of […]