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Virginia has passed non-compete reform, banning non-compete agreements for certain low and middle income workers. The state joins several others that have recently enacted new laws intended to curb non-compete abuse. Between 1990 and 2015, America experienced an explosion in the use of abusive, clearly illegal non-compete agreements and related litigation. Companies use such agreements … Continue reading
To anyone with even a rudimentary understanding of antitrust law, it is obvious that employee non-compete agreements are at least potentially problematic. By definition, non-compete agreements are agreements not to compete. They are contracts in restraint of trade. But say the word antitrust in a non-compete case and most corporate lawyers and (unfortunately) even some judges … Continue reading
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
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
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
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
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
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
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
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
the non-compete blog 