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
Non-Compete Agreements
Defining Victory in Non-Compete Cases
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…
Texas Non-Competes in 2014
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…
The Latest on Texas Non-Competes
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 …
Coercion? Intimidation? to Force Non-Compete Compliance
Assume for a moment that your company has a solid non-compete or non-solicitation agreement in place that is reasonable and there is an ex-employee out there violating the agreement. At this point your lawyers have prepared…
Anti-Planning Provisions – A New Non-Compete Weapon?
Recently, an interesting case came out of the Dallas Court of Appeals that addressed a number of the topics dealt with here, including arbitration, choice of law, and equitable extension of a non-compete agreement. A copy of the opinion can be found here. In short, the defendants sold their insurance underwriting company to the…
Why Abuse of Discretion Matters to Employers (Non-Compete)
Talking about the standard an appellate court uses to review a temporary injunction in a non-compete case isn’t very exciting and we can get lost in the legalese. But it is critical to have some appreciation of what wide discretion a…
Why Courts Like Non-Solicits over Non-Competes
One of my favorite new things to listen to is the Fairly Competing podcast put on by Ken Vanko, Russell Beck, and John Marsh. The podcast addresses a number of issues related to non-competes and trade secrets and recently discussed a court’s preference to enforce a non-solicit over a non-compete. The basic premise is…
Does your lawyer have to disclose your non-compete?
There is an interesting case that recently came out of the Dallas Court of Appeals regarding an attorney’s obligation to disclose the existence of a non-compete when he was preparing an independent contract agreement. If…
The Non-Compete Is An Employment Prenup
I really liked Steve Boese’s article on non-competes in the fistful of talent recruiting blog. Steve considers the non-compete as HR’s equivalent to a prenuptial agreement. Steve also hit on what is most effective about a non-compete whether it is enforceable or not:
Just the threat of potential legal action and the leverage a
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