President Biden issued a new lengthy executive order (EO) on July 9, 2021, aimed at promoting competition in the United States. While that sounds great, everyone needs to keep in mind that this new EO also is aimed at noncompete agreements used by many employers across the country. Specifically, Section 5(g) of the EO encourages
Noncompete Agreements
Beware Poachers! NY Legislature Takes on “No Rehire” and Employee Poaching Issues
Do you typically include a “no rehire” clause in your settlements with soon to be former employees? How about agreements with other companies that you will not “poach” each other’s employees? If your answer to either of those questions is yes, you should keep an eye on some New York legislation that could impact those…
Refer This: Referral Sources Can Be a Legitimate Business Interest for Non-Compete Purposes in Florida
Can relationships with referral sources give rise to a legitimate business interest sufficient to enforce a non-compete? The answer is yes, at least in Florida.
A Little Helpful Background
Generally speaking, non-compete agreements (that prevent a former employee from working for your competitor) are not enforceable unless they protect an employer’s “legitimate business interest.” Non-competes…
To Compete or Not To Compete: White House Wants States to Ban Many Restrictive Covenant Agreements
Many companies have their employees execute non-compete clauses either in employment agreements or as separate documents. The justification for doing so is to protect the company from training workers who later leave and take their new talents and the company clients to a competitor or to protect certain trade secrets. Most states restrict the terms…
So You Have a 10-Page Single-Spaced Alabama Noncompete Agreement, Now What?
Employees in Alabama, like in many other places, often are required to sign employment agreements, most of which contain future restrictions on certain activities. The menu items for these agreements usually include covenants not to compete, not to solicit customers, not to poach other employees, and not to steal information (we call that committing a…