Recent Blog Posts
- Lack of Actual Knowledge of The Existence of a Non-Compete Defeats Tortious Interference Claim
In Acclaim Systems, Inc. v. Infosys, the U.S. Court of Appeals for the Third Circuit recently rejected a claim for tortious interference with a non-compete, because the plaintiff introduced no evidence of actual knowledge that the individuals in question were covered by non-competes.
Infosys, an IT services company, bid on a job from Time Warner Cable (“TWC”) that had been serviced by a competitor, Acclaim. TWC decided to transfer the project over to Infosys, but wanted Infosys to hire four contractors... More
- Illinois Passes Law Banning Noncompete Agreements for Low Wage Workers Illinois recently became one of the first states to ban non-compete agreements for low wage workers when it passed the Illinois Freedom to Work Act. The law, which takes effect on January 1, 2017 and applies to agreements signed after that date, bars non-compete agreements for workers who earn the greater of 1) the Federal, State, or local minimum wage or 2) $13.00 an hour. At present, because the State minimum wage is below $13.00 per hour, $13.00 an hour... More
- Companies on Notice as White House Releases Report on Non-Competes Matthew Savage Aibel
On May 6, the White House released a report entitled: “Non-Compete Agreements: Analysis of the Usage, Potential Issues, and State Responses” (the “White House Report”). This report comes on the heels of the United States Department of Treasury’s Office of Economic Policy releasing a similar report about non-competes in March 2016 (the “Treasury Report”). While the U.S. economy has recovered since the last recession, the Obama Administration has identified a decline in competition for workers as a structural... More
- Are Courts Still Willing to “Blue Pencil” Overbroad Restrictive Covenants to Make Them Enforceable? Restrictive covenant agreements are traditionally governed by state law and thus subject to various jurisdictions’ rules regarding enforceability. They stand on a different footing than most other contracts, in that their enforcement is typically susceptible to a court’s equitable powers, and may not always be enforced as written, if at all. States differ on whether their courts will deny enforcement of a restrictive covenant deemed overbroad as written by the parties or instead modify it to meet the particular state’s... More
- Jurisdiction to Pursue Non-Compete Claims in the Age of Remote Employees Matthew Aibel
With remote access technology becoming standard across industries, companies readily engage a multi-state workforce, with many employees residing outside of the employer’s home state. While an expanded access to talent may be beneficial, one drawback is the ability to enforce restrictive covenants with out of state employees in a consistent manner and in the employer’s home state. The case of Numeric Analytics, LLC v. McCabe, et al., offers insight into that issue. 2:16-cv-00051-GAM (E.D. Pa. 2/9/16).
Numeric Analytics, a... More
- Non-compete Distance Measured as The “Crow Flies” A recent case out of Ohio offers an instructive lesson for those looking to probe the geographical limits of a non-compete agreement. A dentist sold his dental practice and also continued to work as an employee there. As part of the sale, he agreed not to compete for five years and was prohibited from working “within 30 miles” of the practice. The relationship between the parties deteriorated and the dentist went to work for a competing firm. The purchaser dentist... More