Non-Compete Agreements

Employee Non-Solicitation and No-Hire Covenants? What’s the Scoop, California?

The law in California is well settled that, with few exceptions, non-compete agreements are unenforceable.  Less clear is whether and to what extent employee non-solicitation and no-hire agreements can withstand a court’s scrutiny.  These types of agreements often exist between employers and employees, as well as between employers themselves.  And while non-solicitation provisions containing broad language prohibiting direct or indirect solicitation are common, there is significant confusion over the extent of their enforceability in California.  Are these agreements enforceable?  As is often the case, the answer is “it depends.”  Fortunately, there are a handful of published appellate cases highlighting the fine distinctions that guide the analysis: READ MORE

Pushing the Envelope: Eight Circuit Seals the Fate of Envelope Company’s Trade Secret Claims

On December 8, 2017, the Eighth Circuit rejected trade secrets and other claims related to allegedly stolen customer lists.  Applying Missouri state law, the federal appellate court continued the Show-Me State’s tradition of looking at customer list trade secrets with a jaundiced eye. READ MORE

Courts Continue to Enforce Foreign Non-Competes in California While the Window for Such Agreements Slowly Closes

Contrary to common perception, California employees who signed restrictive covenants prior to January 1, 2017 are not completely immune to enforcement of all restrictions on competition. For the second time in several years, a foreign corporation, Synthes, Inc., successfully enforced a non-competition agreement against former employees who were California residents. In the most recent case, the U.S. District Court for the Eastern District of California, enforced the company’s agreement against a Sacramento resident. READ MORE