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Non-Compete Agreements

This category contains 56 posts

Corporate (Mis)Use of Non-Compete Agreements as Insurance Against Ex-Employee Claims

Around 2010, non-compete abuse in America reached peak absurdity. As I have explained many times: This was a a product of the following factors: (1) The internet and the information age. (2) Widespread availability of copy and paste non-compete agreements. (3) Corporate lawyers pushing aggressive use of non-compete agreements as a revenue generation tool. Make … Continue reading

2019: Non-Compete Abuse, Civil Rights, Morality, and Reform

Since starting my own law firm more than seven years ago, I have done one type of work more than any other: Defend poor people against bogus, abusive, illegal non-compete agreements. In all fairness, I have also done lots of work at the other end of the spectrum. I have defended C-Level executives (including some … Continue reading

Janitor Non-Compete Agreements. Yep. That’s a Thing.

Proving once again that corporate greed knows no limits, real estate firm Cushman Wakefield recently sued a former janitor, Sonia Mercado, for violating a non-compete agreement. The Washington Post broke the story. Immediately thereafter, following public outcry and a rash of negative publicity, Cushman caved and agreed to drop the lawsuit.  Although that is a … Continue reading

WeWork Runs Scared, Drops Abusive Non-Competes After State AG Threat

In a turn of events that should surprise no one, the bro-ed out start-up WeWork has caught heat for abusing employee non-compete agreements. That’s right. While holding itself as new wave, disruptive, and collaborative, WeWork has simultaneously required every single one of its 7,500 employees to sign an agreement containing a non-compete provision. This includes … Continue reading

Non-Compete News & Notes – August 2018

It’s August of 2018 and non-compete agreements are still rampant in American markets. Not surprisingly, non-compete litigation remains big business for management-side lawyers, particularly at large corporate firms. But there are cracks in the armor. More and more states are contemplating severe restrictions on the use of non-compete agreements, if not outright bans. And several … Continue reading

National Non-Compete Update – March 2018

IBM & Its Diversity Trade Secrets: IBM had sued its former Chief Diversity Officer for moving to Microsoft and breaching a non-compete agreement. At issue: IBM claimed that Lindsay Rae McIntyre was privy to “trade secrets” regarding IBM’s efforts to promote and retain diverse talent. I call bullshit. Somewhat shockingly, the SDNY issued a temporary … Continue reading

Reevaluating Non-Compete Agreements in the Auto Sales Industry (yes, AutoNation)

It’s time to take a hard look at non-compete agreements in the car business. Let’s use an example: AutoNation, the Fort-Lauderdale-based car industry giant and Fortune 500 company. For the past twenty years or more, AutoNation has had a field day filing weak non-compete lawsuits. AutoNation files these cases in its backyard, the United States … Continue reading

Exiled LLC Member Wins Declaratory Judgment and $1 Million in Wrongful Expulsion & Non-Compete Dispute

Question: When two members of a privately held LLC get together and conspire to wrongfully expel the third member, what is the worst possible course of action they can take? Answer: Insist that the wrongfully expelled member is STILL a member and is bound by a non-compete, then litigate the matter until the bitter end. … Continue reading

Wells Fargo Denied Injunction, Constructive Trust Against Former Brokers

A team of insurance brokers left Wells Fargo, probably took $6.5 million in business with them and managed not to get enjoined.  But they might be toast in the end and owe Wells Fargo lots of money.  Let’s take a look: Case Background  Joshua Tyndell, William Dineen, H. Keith McNally, Thomas Blue, and Erin Repp … Continue reading

6th Circuit Upholds Jury Verdict on Forever Non-Compete Under Ohio Law

FOR-EV-ER.  Remember The Sandlot?  That’s what we’re talking about here.  FOR-EV-ER. A recent decision out of Michigan and the United States Court of Appeals for the Sixth Circuit reminds us that some non-competes can last forever and that jury instructions are incredibly important. Let’s take a look: In 1947, Fred Barton developed a radiator stop leak … Continue reading

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