News & Analysis as of

Former Employee Breach of Contract Non-Compete Agreements

BCLP

Hong Kong High Court Grants Injunction to Enforce Restrictive Covenants

BCLP on

In two separate decisions in April 2025, the Hong Kong High Court first refused, but then allowed, an IT company’s application for an interlocutory injunction to enforce post-termination restrictive covenants against its...more

WilmerHale

Beating the Odds: First Circuit Doubles Down on Massachusetts Decision Enforcing Noncompete Against Sports Betting Executive Newly...

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Against a growing trend of legislation and broader efforts seeking to limit or eliminate post-employment noncompetition restrictions, recent Massachusetts and First Circuit decisions in a dispute between DraftKings and one of...more

Morris James LLP

Chancery Finds Non-Compete Unenforceable by Subsidiaries Unless Identified in Agreement

Morris James LLP on

Frontline Techs. Parent, LLC v. Murphy, C.A. No. 2023-0546-LWW (Del. Ch. Aug. 23, 2023) - This non-compete decision reminds drafters to pay careful attention to scope and definitions, in particular language covering the...more

Parker Poe Adams & Bernstein LLP

North Carolina Court of Appeals Limits Grounds for Review of Noncompete Injunction Denial

When litigating employment non-competition covenants, issuance by the court of a preliminary injunction may be more important than the ultimate outcome of the litigation. Depending on the circumstances, the injunction can...more

Fisher Phillips

Former Employees Who Couldn’t Wait to Leave Their Florida Employer Before Illegally Competing Ordered to Pay Heavy Price

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A Florida Circuit Court judge sternly rebuked two former employees of a private South Florida provider of Autism treatment services who began competing illegally with a new employer – while still employed with their old...more

BCLP

Colorado Law May Govern Noncompete Despite Choice-Of-Law Provision

BCLP on

Colorado law is not particularly friendly to noncompete agreements. A Colorado statute prohibits all such agreements unless they fall within one of four specific exemptions....more

Cooley LLP

Alert: Federal Judge Dismisses Breach of Contract Claim Based on Noncompliance with Massachusetts Noncompetition Agreement Act

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On July 15, 2021, US District Judge Timothy S. Hillman of the US District Court for the District of Massachusetts issued one of the first written decisions analyzing the Massachusetts Noncompetition Agreement Act: KPM...more

McAfee & Taft

When is hiring a competitor’s employee ‘racketeering’?

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When hiring new employees – especially those who are currently employed or who recently have been employed by a competing company or organization – it’s always a best practice to ask them if they are subject to an employment...more

Troutman Pepper Locke

Enforcing Non-Compete Agreements in a Pandemic

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Since the federal government declared a state of emergency in response to the COVID-19 pandemic, the U.S. Department of Labor has reported over 40 million new claims for unemployment benefits. With some estimates indicating...more

Akin Gump Strauss Hauer & Feld LLP

Noncompete Considerations for Employers Implementing COVID-19 Cost-Cutting Measures and Operational Changes

As COVID-19 continues to spread and economic uncertainty persists, many employers are implementing layoffs, pay cuts, furloughs and other operational changes that could cause them to lose the ability to enforce their...more

Bass, Berry & Sims PLC

Chris Lazarini Outlines Court Decision to Uphold Permanent Injunction Against Broker

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Bass, Berry & Sims attorney Chris Lazarini outlined a court’s decision to uphold a permanent injunction against a broker finding the appellate rules do not allow for an appeal as a matter of right. In this case, a bank sought...more

McDermott Will & Emery

Turbulence on Breach of Employment Agreement, Trade Secret Misappropriation

McDermott Will & Emery on

Addressing a bench trial decision concerning a former employee’s retention of confidential information and violation of a non-compete provision, the US Court of Appeals for the Fourth Circuit found no abandonment of the...more

Fisher Phillips

Contractual Employee Non-solicitation Provisions Under Attack: Employer Loses Battle in Case Involving Unique Facts

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California’s prohibition against contracts that restrain a person’s ability to engage in a lawful business, profession, or trade is well-established and well-known. Ten years ago, in Edwards v. Arthur Andersen LLP (2008) 44...more

Dickinson Wright

Sixth Circuit Affirms Attorneys’ Fees for “Enforcement” of Non-Compete Agreement

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In a dispute involving a non-compete agreement with three former employees, the U.S. Court of Appeals for the Sixth Circuit recently upheld a district court decision to award attorneys’ fees to the employer even though there...more

Knobbe Martens

Enforcing a Non-Compete Agreement? – One Size Does Not Fit All

Knobbe Martens on

Two high-end, off-price fashion brands are duking it out over an employee jumping ship from Century 21 Department Stores, LLC to Rue Gilt Groupe. On November 5, 2018, Century 21 sued Rue Gilt Groupe and Berenice Arcuri in...more

Carlton Fields

Second Circuit Affirms Denial of Arbitration in Case Involving Misappropriation of Trade Secrets

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Medidata brought suit against its competitor, Veeva, alleging that Medidata’s former employees, who eventually left the company to work for Veeva, violated their employment agreements which required them to protect Medidata’s...more

Verrill

New Massachusetts Noncompetition Act: What Employers Need To Know

Verrill on

Massachusetts recently enacted a new statute that significantly changes the treatment of noncompetition agreements under Massachusetts law. The Massachusetts Noncompetition Agreement Act (the “Act”) is effective October 1,...more

Butler Snow LLP

Tennessee Court of Appeals Tackles Issues Surrounding Preparation to Compete

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I’ve previously written about the circumstances in which taking preparatory measures to compete crosses the line so as to become unlawful. A couple of recent Tennessee Court of Appeals decisions provide more insight....more

Dorsey & Whitney LLP

How Important are Irreparable Injury Provisions in Non-Compete Agreements?

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Today’s workforce is more mobile than in past generations. Long gone are the days when an employee started and ended a career at the same company. ...more

Fisher Phillips

California Jury Punishes Former Employees for Unfair Play-Only Lawful Competition is Sacrosanct!

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Notwithstanding California's strong public policy in favor of lawful competitive behavior, California employees' duty of loyalty to their current employer reigns supreme. A violation of that duty can lead to costly jury...more

Zuckerman Spaeder LLP

Swimming Pool Company’s Non-Compete Claim Takes a Dive

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When a company believes that an employee has breached a non-compete agreement by going to work for a competitor, one remedy it can seek is a preliminary injunction. A preliminary injunction is meant to preserve the status quo...more

Mintz - Employment, Labor & Benefits...

Post-Employment Covenants: Is an Inducement to Smile An Inducement to Cancel?

A recent Circuit Court case confirms that the term “non-inducement” means just that. In American Family Mutual Insurance Company v. Graham, the Eighth Circuit affirmed a jury verdict against an insurance agent who, the jury...more

Allen Matkins

Employer Can Proceed With Breach Of Noncompete And Trade Secrets Claims Against Former Employee Who Refused To Relinquish Control...

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Recently, an Illinois federal district court denied in part an employee’s motion to dismiss various claims asserted by his former employer, allowing the employer to proceed with its claims for breach of a non-compete...more

Burr & Forman

My Non-Compete, Your Salary: Words Of Caution For Business Owners And Employees

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Without the ability to enforce it, a non-competition agreement can turn worthless, or ? perhaps far worse ? extremely expensive for an employer whose chooses to file litigation against a former employee. One area that can...more

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