Non-competition agreements haven’t gotten much play on this blog. It’s like going into an ice cream shop and ordering Butter Brickle. Meh. Yet, there it is: Butter Brickle, right between classics like Vanilla and Chocolate and those newer flavors, Tahitian Vanilla and Chocolate Dreamsicle. As a mainstay, every once and…
Articles Posted in Non-Competition
Hocus Pocus: PA Supremes eliminate magic language for creating non-compete loopholes
On Wednesday, the Pennsylvania Supreme Court made a lot of — some would say, creative — lawyers unhappy. In a 4-1 decision, the Court held Wednesday that the language “intending to be legally bound” found in Pennsylvania’s Uniform Written Obligations Act will not save an otherwise unenforceable non-competition agreement. You can…
Everything you need to know about restrictive covenants and protecting confidential business information
Yesterday, I had the privilege of presenting a webinar for LexisNexis with my colleague, Larry Holmes, and Sterling Miller. Larry and I have served in the restrictive-covenant trenches together many times. Sterling serves as Senior Counsel at Gober Hilgers. He’s also the former General Counsel and Chief Compliance Officer to Sabre Corporation…
Though employees may not balk at signing non-competes, the key is when to use them.
Last week it was #thedress. Before that, Kim Kardashian broke the internet. But, first, there was the Jimmy John’s non-competition agreement kerfuffle that dominated my Twitter. Probably not yours though, because you have a life. Then again, here you are reading this post, pot. Or shall I call you kettle? [Hey…
Will the PA Supreme Court revolutionize non-compete agreements?
I meant to write about this a week or so ago after I saw Dan Packel’s article at Law360. But, then, I got sidetracked with a bunch of NLRB stuff. Until, yesterday, Lizzy McLellan’s article at The Legal Intelligencer brought me back. So, here’s the deal. The basic rule in…
Read this before you ask an entry-level worker to sign a non-competition agreement
My Facebook and Twitter feeds were blowing up yesterday with links to articles at NYTimes.com, Huffington Post, and Jezebel about how the sandwich chain, Jimmy John’s, supposedly makes its sandwich makers and delivery drivers sign these non-competition agreements. These agreements purport to preclude employees from working for certain nearby competitors for two…
PA Superior Court closes non-competition-agreement loophole
In Pennsylvania, a company and an employee can enter into an agreement whereby, in exchange for some form of consideration, the employee agrees not to compete with the company after the employment ends. Consideration can come in a variety of forms; for example, a raise, bonus, promotion, or sugar. Initial employment…
No non-compete in the offer letter, but here’s a way to enforce one…
You’re hiring for an engineer position. To assist, you engage a search firm, which finally locates an ideal candidate. After a telephone conversation, and a subsequent tour and in-depth interview, you know that you have the right person for the job. So, you prepare and send an offer letter. The…
Employer customer lists: “Whatever you say, dude.”
You’re looking to hire a new salesperson. Scott Salesperson comes in to interview. He currently works for your top competitor. “Scott, do you have a non-competition agreement?” “No.” “Scott, do you have a confidentiality agreement?” “No. In fact, I have a list of my own customers that I could sell…
Is a non-compete agreement signed months after work begins enforceable?
I was reading a blog post from Jennifer L. Gokenbach at the Colorado Employer’s Law Blog, discussing how, as of yesterday, Colorado deems continuation of at-will employment to be sufficient consideration to support a non-competition agreement. In non-lawyer speak, that means that if an employee signs an agreement not-to-compete in Colorado…