Since the much-discussed Fifield case from the Illinois appellate court two years ago, all that could be said with confidence was that, unless someone was employed for at least two years after signing a restrictive covenant agreement, its enforceability was highly questionable. Practitioners in Illinois have been recommending that employers provide consideration in addition to
Reminder From the 7th Circuit: Don’t Put the Cart Before the Horse (Establish your Legitimate Interest in Need of Protection Before you Complain About the Breach of a Non-Compete)
In the rush to the courthouse after an executive leaves, takes people with her, and opens a competing business, the spurned employer often relies on the promise that executive made—the noncompete agreement—and the undisputed breach of that promise and believes the court will provide a remedy. “Not so fast,” is the takeaway from the 7
Hawaii Bans Non-Compete and Non-Solicit Clauses in High-Tech Employment
Jackson Lewis Hawaii attorneys Andrew L. Pepper and Wayne S. Yoshigai have a post on the Jackson Lewis website about a new development in Hawaii non-compete law. They write as follows:
Departing from the state’s normally pro-employer laws and judicial attitudes regarding non-compete covenants, a new law bars high-tech companies in Hawaii from requiring their
Alabama Amends Non-Compete Statute
The Alabama legislature recently passed changes to Section 8-1-1 of the Code of Alabama, the provision which contains the state’s non-compete statute. Governor Bentley signed the new version of the statute and it will become effective January 1, 2016. While the new version does not drastically change the landscape of non-competes, there are several
Minnesota Court Applies Texas Law, Proceeds to Blue Pencil Restriction
The District of Minnesota issued an interesting decision on June 9, 2015 in the case of BMC Software, Inc. v. Mahoney, No. 15-CV-2583 (PAM/TNL). Mahoney was a Sales Manager for BMC and responsible for the Midwest Region. Around the time he was promoted into that role, he signed a non-compete agreement governed by Texas
Wisconsin Non-Compete Waters Just Got Muddier
On April 30, 2015, the Wisconsin Supreme Court issued its long-awaited decision in Runzheimer Int’l, Ltd. v. Friedlen, settling a dispute in Wisconsin over whether continued employment alone was sufficient to bind an employee to a non-compete agreement. The case involved an important, if nuanced, distinction between (a) whether there is a legal “agreement”
New Arkansas Law Permits Blue-Penciling of Employment Non-Compete Agreements
Arkansas has a new non-compete law. James H. Stock, a shareholder in our Memphis office, has written an article on the Jackson Lewis website about these developments. As he notes, the legislation signed by Arkansas Governor Asa Hutchinson will allow “a court to enforce the reasonable parts of a non-competition agreement, while deleting the overbroad
Missouri Federal Court Reminds Employers that Non-Compete Agreements are not Automatically Assignable
The United States District Court for the Western District of Missouri has declined to enforce two employment agreements containing non-competition covenants because the employees who signed them had not contemporaneously assented to their assignment when their employer sold its assets to another company. Symphony Diagnostic Services No. 1, Inc. d/b/a MobileXUSA v. Greenbaum, No.
Minnesota Supreme Court Allows Advice of Counsel Defense to Tortious Interference Claim in Non-Compete Dispute
The Minnesota Supreme Court has affirmed lower court findings dismissing a claim of tortious interference with contract by a staff augmentation company that successfully sued a former employee and his new employer for breach of a non-compete agreement. Sysdyne Corp. v. Rousslang, et al, No. A13-0898 (Minn. March 4, 2015). Sysdyne, the plaintiff at
$40 Million In Sale of Business Held Sufficient Consideration for Non-Compete
A federal court in Minnesota has rebuffed a plea by the founders of medical device company Rochester Medical to invalidate five year non-competes they signed in connection with the sale of their business to C.R. Bard, Inc. Conway v. C.R. Bard, Inc. (D. Minn. Feb. 12, 2015). Plaintiffs argued that the non-competes were invalid for