Tag Archives: restrictive covenants

White House Issues State Call to Action on Non-Compete Reform

The White House, Washington DC with two flags in frontThis week, the Obama Administration continued its ongoing efforts to curb what it considers to be the “gross overuse” of non-compete agreements. In a “State Call to Action,” the White House encourages legislatures to adopt certain recommendations for non-compete reform. Tuesday’s announcement follows the Obama Administration’s May 2016 report, “Non-Compete Agreements: Analysis of the Usage, … Continue Reading

Take Care in Drafting: Meschino v. Frazier Industrial Co. Is a Cautionary Tale for Employers

Non disclosure agreementIn Meschino v. Frazier Industrial Co., Civil No. 15-10327-RGS, 2015 WL 7295463 (D. Mass. Nov. 18, 2015), Judge Stearns held that an employment agreement superseded an earlier employment agreement and a separate earlier confidentiality and non-compete agreement. A 2005 employment agreement provided that the employee would be required to execute a separate confidentiality and non-compete … Continue Reading

Massachusetts Courts Continue to Reject Inevitable Disclosure Doctrine

Judge Janet L. Sanders of the Superior Court’s Business Litigation Session has continued the trend of Massachusetts courts refusing to recognize the inevitable disclosure doctrine. In The Gillette Company v. Craig Provost et al, Civ. Action No. 15-0149 (Mass. Sup. Dec. 22, 2015), Gillette moved for a preliminary injunction to prevent its former counsel and … Continue Reading

Massachusetts Federal Court Reaffirms That Continued Employment Constitutes Sufficient Consideration for Non-Compete

In American Well Corporation v. Obourn, Civil No. 15-12265-LTS, 2015 WL 7737328 (D. Mass. Dec. 1, 2015), Judge Sorokin of the United States District Court for the District of Massachusetts upheld a non-compete entered into seven months after the employee’s start date. The Court explained that as to whether continued employment constitutes sufficient consideration for a … Continue Reading

Protected Occupations: Statutory Exemptions from Non-Competes for Employee Classes

DiverseProfessions-ThinkstockPhotos-166843143The states have a rich tradition of passing legislation forbidding or limiting the use of non-compete agreements with identified classes of employees. As you might expect, a number of states forbid or limit the use of non-compete agreements with: Physicians, nurses, psychologists, social workers and other medical professionals Lawyers Individuals working in broadcasting Public health, … Continue Reading

Consistency Is Key: Corporate Enforcement Practices in Non-Competes Critical to Judicial Review

A recent decision from a Wisconsin state court serves as a cautionary tale for employers that do not routinely impose or enforce non-compete restrictions consistent with the employee’s role and potential to harm the business. In Kohl’s Department Stores Inc. v. Janet Schalk, 2015CV001465 (Wis. Cir. Ct. Aug. 11, 2015), Judge Robert Mawdsley denied Kohl’s … Continue Reading

Can We Still Be Friends? The Uncertain Definition of Non-Solicitation in the Digital Age

Network PeopleAlthough last year’s legislative efforts to ban—or limit further—non-competes in Massachusetts failed, proponents have vowed to revive the issue again in 2015-2016. Excluded from those proposed measures, however, has always been any restriction on employers’ use of customer non-solicitation clauses. Should the Legislature ever pass restrictions on non-competes, employers that have not already done so … Continue Reading

Be Careful What You Wish For: Employer’s Arbitration Clause Backfires

A recent decision from the Business Litigation Session of the Massachusetts Superior Court has broad implications for non-compete cases involving arbitration clauses. In TIBCO Software, Inc. v. Zephyr Health, Inc. and Kevin Willoe, the court denied an employer’s motion for a temporary restraining order enforcing a non-compete, finding the employer’s own arbitration provision required it … Continue Reading
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