Non-Compete Agreements

It’s always interesting to take a look at other states to see how they deal with non-compete legislation.  We’ve discussed Masschusetts and most recently doctor non-competes in New Mexico.  Hawaii is the latest state to enact new noncompete legislation targeting workers in a “technology business”.  This is how the Hawaii legislature defined “technology business”:

Hawaii

 

For the last few months I’ve been involved in a number of temporary restraining order/preliminary injunction cases in state and federal courts in a number of different industries/professions. Some general reminders/lessons from non-compete/non-solicit fights:

  1. Signed Agreements – Make sure the non-compete agreements at issue are signed.  Some companies have their employees execute agreements on line

findaJJLanding

When news of the Jimmy John’s non-compete came out last October my concern was the impact it would have on businesses with legitimate non-competes.  There is always a populist theme that is anti-non-compete.  Employees should be able to come and go as they please and a non-compete agreement prevents that.  “Bad” non-competes undermine “good”

A few months ago we considered the Jimmy Johns non-compete that received national attention and was even the subject of a class-action lawsuit.  The short of it was the non-compete applied to the nice sandwich maker that filled your order and most folks didn’t think a non-compete for those folks made sense.

Up to

It’s been 3 and a half  years since the Marsh opinion that redefined what could constitute consideration for a Texas non-compete and courts have bee relatively quiet on non-competes since then.   That’s not surprising from the Texas Supreme Court as Marsh was the third of a trilogy of opinions dealing with the subject.  Appellate courts

A little light reading for everyone:

  1. Here’s an analysis of a recent Nike/Adidas dispute.  Nope, not over signing the latest basketball phenom to a shoe contract.  Instead, a lawsuit against several Nike designers who bolted for Adidas.  Nice breakdown by Florida lawyer Jonathan Pollard.  The link.
  2. A quick blurb on a Kentucky court’s refusal

This Tuesday at noon central I will be presenting on “Protecting Your Client from the Departing Employee”.  The presentation is through West LegalEdCenter and can be streamed after the presentation date.  Here is a link – https://westlegaledcenter.com/program_guide/course_detail.jsf?videoCourseId=100042157.

I really enjoyed an article about Madison, Wisconsin based Epic Systems’s non-compete agreement and the comments of those former employees who were abiding by it.  There was some scuttlebutt about whether Epic was going to extend the term from 1 to 2 years.  Epic is big in the healthcare IT world and its ex-employees go

findaJJLandingI like Jimmy John’s sandwiches.  Fast service and a decent sandwich.  Unfortunately it pains me to reflect on the non-compete that they are apparently using with their workers.  Yes, the gentleman or lady behind the counter is now subject to the following:

Employee covenants and agrees that, during his or her employment with the Employer