Indiana Appellate Court Upholds Liquidated Damages in Non-Compete and Non-Recruitment Provisions

Employment Agreements, Liquidated Damages, Non-Solicit, Indiana, Non-Compete

by Ariane M. Janz

Liquidated damages provisions are supposed to simplify non-compete cases, but disputes over the enforceability of such provisions can have the opposite effect, complicating the matter and adding uncertainty. If a court determines that the liquidated damages are grossly disproportionate to the employer’s actual loss, the court may refuse to enforce the liquidated damages provision as an impermissible penalty.  Continue reading

Can an Employer Be Bound By a Non-Compete Agreement It Did Not Know Would Be Presented To Its Employees?

Non-Compete, Employment Agreement, Grant v Johnson, Michigan

by Mark C. Vanneste

What if an employee agrees to a non-compete clause but the employer did not realize it would be presented to the employee? It sounds unlikely, but would the employer be bound by those terms? Maybe. These were the circumstances in the United States District Court for the Eastern District of Michigan’s recent Eric Grant v Johnson Electric decision. Continue reading

Supreme Court of Wisconsin Finds Non-Solicitation of Employees Provision an Unenforceable Restraint on Trade

Supreme Court of Wisconsin, No-Solicit, Manitowoc Company, Lanning

by Chase M. Hundman

In The Manitowoc Company, Inc. v. Lanning, the Supreme Court of Wisconsin ruled that a non-solicitation of employees provision contained within an employment agreement was unreasonable and unenforceable under Wisconsin statute as overly broad.  Continue reading

New Nevada Law Imposes Significant Changes That Affect The Enforceability Of Non-Compete Agreements

Non-Compete, Employment Agreements, Nevada

On June 3, 2017, Nevada Governor Brian Sandoval recently signed Assembly Bill 276 (“AB 276”), which articulates new rules and requirements for non-compete agreements, some of which fundamentally alter the State’s prior practices. The following is a synopsis of the new law.  Continue reading

Does A Non-Compete Expire When the Term of an Employment Contract Ends?

non-compete, employment agreements, Pennsylvania

Often, an employee will sign an employment contract that contains, among other things, a non-compete and a set term. Because the parties fail to renew the employment contract after it expires, the employee continues to work on an “at-will” basis. 

Later, the employee resigns, joins a competitor and begins a solicitation campaign in violation of the expired employment contract’s non-compete. The former employer files a court action seeking to enforce the non-compete in the expired employment contract. Is the non-compete enforceable? Continue reading

The Difficulties in Obtaining Relief Under the Defend Trade Secrets Act of 2016

lock-on-a-gate

The Defend Trade Secrets Act of 2016 (“DTSA”) provides a new tool in the form of an ex parte seizure for businesses and individuals to safeguard their trade secrets after misappropriation has occurred. Unfortunately, many trade secret owners have discovered that obtaining this form of relief is no easy task. Continue reading

Kentucky Supreme Court Finds Continued Employment Alone Insufficient Consideration To Support A Restrictive Covenant

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On June 19, 2014, the Supreme Court for the Commonwealth of Kentucky held that for continued employment to be deemed sufficient consideration for the enforcement of a restrictive covenant agreement, there must be a change in the employment relationship between the parties.

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