Category Archives: Noncompete Agreements

SEC Takes Action Against Employer Confidentiality Clauses That Could Limit Employee Whistleblowing

Recently, the Securities Exchange Commission (“SEC”) warned that it will investigate and take administrative action against employers who require employees to sign confidentiality agreements/statements prohibiting the employees from communicating the employer’s possible securities law violations to the SEC (i.e. whistleblowing).

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Court-Reformed Non-Compete Agreements can Impose Serious Liability on Employers

A Texas employer trying to enforce a non-compete agreement learned the hard way that Texas Courts may reform the agreement to more reasonable terms and then award the employee his attorneys’ fees at the end of trial.  This is exactly … Continue reading

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“Targeted Mailings” May Violate Non-Solicitation Agreements

In a recent interlocutory appeal, the First Circuit upheld a preliminary injunction restraining a former employee from selling products to his former employer’s customers in violation of a non-solicitation agreement, despite the fact that the customers initiated contact with the … Continue reading

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California Court Outlines Boundaries Of UTSA Preemption

The Court of Appeals for the Fourth District of California recently outlined the preemption boundaries of the California Uniform Trade Secrets Acts (“CUTSA”).  The Court held that common law claims that are based on independent, but related, factual grounds are … Continue reading

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Tide Shifts In Virginia On Noncompete Agreements

A recent decision by the Supreme Court of Virginia marks a dramatic shift in the way covenants not to compete will be litigated in the Commonwealth.  Employees now face a more difficult road when contesting restrictive covenants, even though the … Continue reading

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Illinois Court Holds that Two Years of Continued Employment Is Required to Enforce Noncompete or Nonsolicitation Agreements

An Illinois Appellate Court has held that a promise of new employment does not alone provide sufficient consideration to enforce post-employment restrictive covenants, such as noncompete or nonsolicitation agreements, unless the new employee continues employment for at least two years.  … Continue reading

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Eastern District of Virginia Rejects Sale-of-Business Argument For Non-Compete Agreement

On May 17, 2012, in Capital One Financial Corporation v. Kanas, et al., the U.S. District Court Eastern District of Virginia held that the validity of a covenant not to compete of two banking executives should be treated as arising … Continue reading

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Virginia Supreme Court Issues Important Noncompete Decision

Last week, the Virginia Supreme Court issued an important decision involving a covenant not to compete that was virtually identical to one that it upheld twenty years ago.  This time, however, the Court concluded that the covenant was overbroad and unenforceable.  … Continue reading

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Minnesota Decision Is Cautionary Note For Employers That Hire Competitor’s Employees

In an unpublished decision, the Court of Appeals for Minnesota affirmed a district court’s enforcement of a noncompete covenant and awarded a former employer over $615,000 against a competitor who hired the employee bound by the covenant not to compete.  … Continue reading

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Virginia Circuit Court Strikes Down Noncompete As “Inherently Overbroad”

A Virginia Beach Circuit Court struck down a noncompete agreement entered into between a medical company and a nurse practitioner who left the company to start her own clinic.  The company filed suit to enforce the noncompetition and nonsolicitation clause … Continue reading

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Former Broker Enjoined From Using Fidelity’s Customer Lists

The U.S. District Court for the Eastern District of Virginia recently issued a temporary restraining order (TRO) preventing a former broker for Fidelity Global Brokerage Group, Inc. from using Fidelity’s proprietary customer information to solicit its customers for his new employer, … Continue reading

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Fairfax Circuit Court Declines To Enforce Noncompete Agreement

Virginia Lawyers Weekly has an article here on a recent decision by the Fairfax County Circuit Court involving a noncompete agreement.  More after the break.

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Another Circuit Court Refuses To Enforce A Virginia Noncompete Agreement

A Virginia Circuit Court recently struck down a noncompete agreement between an employer and a former employee as overbroad in scope.  More after the break.

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Clear Showing Of Actual & Immediate Irreparable Harm Must Be Proven For Injunctive Relief

In FBR Capital Markets & Co. v. Karen Short, the United States District Court for the Eastern District of Virginia found that FBR failed to present sufficient evidence to warrant the granting of a temporary restraining order in connection with … Continue reading

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Dispatcher Wins Noncompete Suit

Virginia Lawyer’s Weekly has an article here on a delivery dispatcher who won a noncompete suit in Fairfax Circuit Court.  The Court struck down the noncompete as overbroad under the “janitor” rule — i.e. the noncompete would have prohibited the … Continue reading

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