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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
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
I’ve been saying it for years: Non-compete agreements are restraints of trade and are subject to antitrust scrutiny. The United States Court of Appeals for the Ninth Circuit agrees. Before the court can consider whether or not there has been a breach of an agreement not to compete, it first must evaluate the propriety of … Continue reading
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
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
Let that sink in: AAMCO sued two former franchisees, a husband and wife couple, for breaching a non-compete agreement. AAMCO was represented in the litigation by a team of lawyers from three law firms. And they lost to two pro se litigants. Let’s take a look: AAMCO is a franchisor of transmission repair centers based … Continue reading
Last week, the Wall Street Journal ran a story about non-compete agreements making it difficult for younger journalists to get new jobs and move up in the news world. The article focused substantially on a young journalist named Stephanie Russell-Kraft who moved from Law360 to Thomson Reuters. Shortly after beginning work at Thomson Reuters, her … Continue reading
A recent case out of the District of New Jersey addresses disintermediation as a legitimate business interest in the non-compete context. Disintermediation is just a technical term for cutting out the middle-man. Let’s take a look: CarePoint Health Management Associates is a New Jersey hospital system. UpStream Healthcare Management Associates is a hospital management company … Continue reading
the non-compete blog 