Smooth Transitions

Smooth Transitions

addressing the Legal issues arising from the departure of employees & Business breakups

Tag Archives: Non-Solicit

Nothing Like A Hair Stylist Non-Compete Case

Posted in HR Issues, Injunction, Non-Compete Agreements, Non-Solicitation Agreements, Recent Cases, Uncategorized
The details are slim from a recent article from the New York Post about a $3 million dollar non-compete/breach of contract case against a New York City hair stylist.  What we know: Stylist Annie Rush worked at the salon for 6 years; Apparently she is alleged to have signed a 1 year non-compete (that is… Continue Reading

Utah Leads the Way on Non-Compete Legislation

Posted in Injunction, Non-Compete Agreements, Non-Solicitation Agreements, Uncategorized
  I went to school in Utah and manage to ski up there every so often.  That’s a picture of my son and I in December.  Recently I ran accross an article  breaking down changes to Utah’s and Idaho’s non-compete laws.  The Utah statute really grabbed my attention.  The highlights: (1) non-competes can only last… Continue Reading

Is Texas Non-Compete Legislation on the horizon?

Posted in Non-Compete Agreements
  If you follow the ups and downs of non-competes across the country you’ll note that there is a populist fervor in favor of banning non-competes in some states including Massachusetts.  The argument generally goes that non-competes stifle innovation and of course prohibit an employees’ ability to move elsewhere (which is true).  California has essentially… Continue Reading

TRO Tips/Thoughts

Posted in Injunction
           Just a few random thoughts on Non-Compete/Non-Solicit TROs after some recent experiences: Hopefully the other side is represented by counsel – Despite popular belief the ex parte TRO is in many instances much harder to get than one where the other side is represented by counsel. It’s just easier when… Continue Reading

The Year That Was in Texas Non-competes

Posted in Non-Compete Agreements
                          At the end of each year I try to address and take inventory of what has occurred in post-employment covenant litigation in the State of Texas.  After several years of dramatic Texas Supreme Court opinions on the subject of non-competes, 2012 was a quiet year.  We heard nothing from the Texas Supreme Court on… Continue Reading

Get Ready for More Healthcare Non-Competes

Posted in Non-Compete Agreements
                                   Medical device manufacture, Synthes Medical Company, has filed a number of lawsuits against former employees alleged to have violated non-compete and non-solicitation agreements.  The lawsuits illustrate the rise of litigation within the medical world over non-competes.  Synthes, with whom I… Continue Reading

Protecting Your Business In 2012

Posted in Non-Compete Agreements
                          Happy New Year! Last year the Texas Supreme Court altered the non-compete landscape in Marsh v. Cook.  As lower courts construe the opinion we will see what its impact is on employers and employees.  The takeaway from the opinion should be that employers will attempt to offer other forms of consideration, like stock options, signing bonuses, etc., in… Continue Reading

The World of Non-Competes 3 Ed.

Posted in Non-Compete Agreements
Some interesting stories in the world of non-compete agreement enforcement from around the United States:  Non-Competes and Arbitration Provisions – An interesting case out of the Tenth Court of Appeals where the Court ruled reformation of a non-compete agreement could not be used to avoid an arbitration clause. Updating Non-Competes – A nice discussion by… Continue Reading

Choice of Law

Posted in HR Issues
                     Over the last few weeks we’ve discussed some key components in employment contracts including venue and jury trial waivers. Another key provision is choice of law. As was discussed in the Sam Adams case, choice of law  was critical because it permitted the employer to pursue an action against a former employee for breach of a… Continue Reading

Venue Venue Venue

Posted in HR Issues
                       Employers should always be careful and cognizant of venue provisions in their employment agreements. Many employers will simply include a venue provision making venue mandatory where the home office or headquarters is located, but this doesn’t always make sense in the context of an employment dispute.    Recently, I reviewed a contract which required… Continue Reading

Non-Competition Without a Non-Compete

Posted in Non-Solicitation Agreements
In Texas there are other options to prevent departing employers from competing with your business: A Non-Solicitation: Instead of tying down your employee with a non-compete consider a non-solicitation. The non-solicit will still have to meet non-compete standards, but it can be used for specific customers as opposed to geographic areas. The rub, there will always be… Continue Reading

Texas Non-Compete Myth #2

Posted in Non-Compete Agreements
                            #2: Non-Compete Agreements Are Unenforceable in Texas. Texas courts have been enforcing non-compete agreements for many years and they are specifically authorized by Texas law – Texas Business and Commerce Code Section 15.50.  The highlights from that statute: a covenant not to compete is enforceable if it is ancillary to or part of… Continue Reading

Enforce that Non-Compete!

Posted in Non-Compete Agreements
                                        Texas businesses routinely use non-compete agreements to protect proprietary information in a variety of industries and occupations.  Assuming an employee has executed an enforceable non-compete agreement, what else should Texas employers be doing to enforce these agreements? To begin with assume a situation where the employee is or has departed.  As part of any… Continue Reading

Non-Competes That Don’t Work

Posted in Non-Compete Agreements
                     In Texas a non-compete agreement has to be reasonable in time and scope and ancillary to an otherwise enforceable agreement.  The latter is difficult to decipher but basically there must be an agreement where the non-compete enforcer has agreed to give something to the enforcee and the non-compete protects what was provided.  In most… Continue Reading

Non-solicits that address social media communications.

Posted in Non-Solicitation Agreements
                                        Typically, employers use non-compete clauses to prevent former employees from competing with them after they’ve provided them with trade secrets, customer information, or other proprietary information. Non-solicits can essentially have the same effect – by restricting or preventing a former employee from calling on or contacting former customers. Here is an example: You hereby agree and… Continue Reading

Are wirehouse brokers on the move?

Posted in Financial Advisors
A recent survey by Boston-based Alite Group found the following: 11,000 wirehouse reps may be on the move; 15% are satisfied with their employer; 20% are ready to move and would like to do so in the next 2 years; 2/3’s of those with retention plans in place say there is a chance they’ll leave;… Continue Reading

Caught Red Handed with LinkedIn

Posted in Non-Compete Agreements, Non-Solicitation Agreements, Placement Professionals
                                               Minnesota based TEKsystems Inc. sued three former employees for violating non-compete and non-solicit agreements.  TEKSystems is in the technical recruiting business and it claims one of the former employees was contacting its contract employees.  The complaint alleges Defendant Brelyn Hammernik used LinkedIn to solicit these employees: For example, Hammernik has communicated with at least 20 of TEKsystems’ Contract Employees… Continue Reading

Keep your employment agreements handy.

Posted in Non-Compete Agreements
                     Whenever I talk with an employee or employer about a noncompete or nonsolicitation agreement the number 1 question is "Can you provide me with the agreement you (or the employee) signed?"  Usually, the employer has a nice neat employment file that contains all agreements.  Employees on the other hand are usually a different story.  In… Continue Reading