Can an employer enforce a noncompete against a former employee terminated during a reduction-in-force? Employer concerns of unfair competition are reemerging now that recently terminated employees are finding employment (some with competitors) in an improving economy.
It finally happened. After years of debate on Beacon Hill, Massachusetts law makers agreed to reform the Commonwealth’s treatment of noncompetition agreements. Among other things, the bill precludes enforcement of noncompetition agreements against non-exempt employees, limits their length to just 12 months, and precludes the use of “continued employment” as acceptable consideration. If signed by the Governor, the bill will apply to agreements entered into on or after October 1, 2018.
Twas the night before Christmas, when all through the company; A disgruntled employee kept saying “please jump with me.” She was trying to line up a grand, mass departure; Of which she was certain no one could outsmart her.
A Kansas employer sees its choice-of-law provision invalidated, has to proceed under Wisconsin law, and survives to tell the tale!
On November 18, 2015, in a highly anticipated decision, the Pennsylvania Supreme Court held that employers could not use the language set forth in Pennsylvania’s Uniform Written Obligations Act (“UWOA”) to avoid providing adequate consideration for a restrictive covenant signed by an employee. In Socko v. Mid-Atlantic Systems of CPA, Inc., the Court considered whether a non-compete agreement signed by Socko with Mid-Atlantic following the ...
Previously, we have written about the Top Ten Things to do When an Employee Resigns to Join a Competitor and the Top Ten Mistakes Made by Departing Employees. Given the favorable feedback, we continue with the following Top Ten Things to Consider When Drafting a Non-Compete Agreement.
For companies with employees in multiple jurisdictions, creating a single non-compete agreement for use by employees throughout the country can be tempting, yet potentially ineffective. The following issues may vary from state to state and should be considered when determining how many agreements a company needs and how to maximize the prospect for enforcement.
As with any contract, to be enforceable, a non-compete must be supported by consideration. The Colorado Supreme Court recently fell in line with the clear majority position by finding that continued employment alone is sufficient consideration.
Employers and employees alike often ask how much consideration is required to support a non-compete. A recent case suggests that a Garden Leave clause -- a promise to pay the employee's salary for the duration of the non-compete -- is adequate.
Good mergers can turn bad without attention to employee retention -- be sure to carefully analyze the existence and enforcability of non-competes signed by key employees early in the process.