In recent years, courts have largely been ruling against employers in cases of disputed non-compete agreements. A non-compete agreement is a provision in an employment agreement which states that the employee, after leaving the employer, will not compete with the employer for business within a certain time frame and…
This blog has already discussed new litigation and recent cases regarding non-compete agreements. It may already be obvious that more and more of these cases are being decided in favor of the defendants. Another such case has recently had its time in court and, once again, the defendant came…
Non-compete agreements have become fairly common, especially for those working in the technology field. Many companies are afraid that their employees will leave and take trade secrets and/or customers to their competitors. To prevent this from occurring, most employers require their employees to sign non-compete agreements as a condition…
Healix and HHI compete in the business of infusion therapy services: administration of substances such as pharmaceuticals intravenously or by any method other than ingestion. Some medical care providers offer these services to patients in their offices. Healix and HHI provide support. In 2007 Healix recruited the Clinic as…
After a woman filed suit against a fundraising company for alleged payroll violations, the company brought counterclaims against her, including a claim for alleged breach of a covenant not to compete. Fields v. QSP, Inc. (Fields 2), No. CV 12-1238 CAS (PJWx), opinion (C.D. Cal., Jun. 4, 2012). The plaintiff…
Many states have been cracking down on employee non-compete agreements lately. California has recently decided that workers who are already employed by a company cannot sign a valid non-compete agreement with that company without some sort of additional compensation. Signature of a non-compete agreement as a condition of getting…
Despite the fact that some state laws have been working against non-compete clauses in employee contracts, companies continue to find ways around them. While California has been the least tolerant by banning non-compete clauses altogether, other states, such as Massachusetts, have taken more moderate approaches by seeking merely to…
An appellate court in Louisiana affirmed an order granting partial summary judgment to the defendants in a lawsuit over a purported covenant not to compete. The court held in Elite Coil Tubing Solutions v. Guillory that the plaintiff company failed to meet its evidentiary burden to enforce a non-compete agreement…
A communications company sought to enjoin a former employee from working for a competitor or divulging any trade secrets, pursuant to a non-competition agreement signed by the parties. The employee contended that the agreement was unenforceable because it failed to define a key term. The U.S. District Court for the…
A business sought to enforce a covenant not to compete against a former employee in Matter of Richard Manno & Co., Inc. v. Manno, requesting a preliminary injunction from the Supreme Court of Suffolk County, New York pending the outcome of arbitration. The agreement between the parties was part of…