Non-Compete Agreements

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From the employer’s perspective it’s always nice to have something new to use to prevent an employee from competing or using proprietary/confidential information once the employment relationship ends.  Of course we talk all the time here about the standard post-employment covenants like the non-compete and non-solicitation provision.

One item we haven’t addressed previously is

iraq-shock-and-awe

Remember when the US employed “shawk and awe” to start the war against Iraq?  Do the same type tactics work in non-compete cases? One issue that typically arises in non-compete enforcement actions is who to sue.  Of course the lawsuit will name the former employee who is violating their post-employment covenant but what about

Original Complaint Filed by Amazon
Original Complaint Filed by Amazon

In Seattle, former Amazon Web Services Strategic Partnership Manager Zoltan Szabadi was sued by Amazon for violation of his non-compete agreement.  Szabadi is now with Google in their cloud platform business.  The lawsuit alleges:

Szabadi was directly and integrally involved with the marketing of Amazon’s cloud

A recent article in the New York Times highlights the use of non-competes in a wide variety of occupations including a summer camp counselor and a hair stylist.  The article seems to casts non-competes as used in too many situations and that there is a rise in non-compete enforcement.  I’m not sure I agree with

                 

The reality of the litigation world is the vast majority of cases are settled.  That means there is no trial, there is no summary judgment, and there is no ultimate decision by the court that resolves the case.  I had a professor in law school that

                         

Not Much in 2013

I kind of feel like a broken record when it comes to Texas non-compete development over the last few years. Since the Marsh opinion I have been anticipating more significant developments in the non-compete and post-employment covenant world as employers attempt to use different types of consideration as

                    

It’s been over 2 years since the Marsh non-compete opinion was delivered by the Texas Supreme Court clarifying what the phrase “ancillary to an otherwise enforceable agreement” actually means. The real take away from that opinion, which we have discussed extensively, is that the consideration or value provided to the employee as part of