Legal Publisher in Settlement to Drop Noncompete Agreements for Employees

Is the tide turning in New York and Illinois against employee non-compete agreements? This Wall Street Journal article only refers to violations of “New York labor laws” as the focus of the New York Attorney General’s investigation of Law 360’s threat to enforce a non-compete against a former reporter. Since New York contract law permits “reasonable” employee non-compete agreements, it is unclear what laws might have been violated. The article also says that the Jimmy John’s sandwich …

Trade Secrets Law is Now Stronger Than Ever. Will This Lead More States To Invalidate the Less Useful, But More Pernicious, Employee Non-Compete?

Trade Secrets Law is Now Stronger Than Ever. Will This Lead More States To Invalidate the Less Useful, But More Pernicious, Employee Non-Compete Agreement? The “Defend Trade Secrets Act of 2016” was signed into law yesterday by President Obama. It creates a new federal private civil action against trade secret thieves. This is a useful alternative to the pre-existing state private civil actions by trade secret owners, because it 1) provides access to federal courts nationwide, 2) …

In HBO’s “Silicon Valley”, Art Imitates Life

    In the Season 2 finale of Silicon Valley, Pied Piper’s survival depends on a noncompete clause! I just watched the final episode of Season 2 of HBO’s “Silicon Valley”. Guess what! The survival of the hot startup “Pied Piper” depends on an arbitration of a claim that the startup belongs to a former employer, because the founder used the employer’s resources to create it. But, the arbitration decision depends on an interpretation of …

Mass. Tech Employer Says Noncompetes Hurt Workers and Their Employers

[The CEO of a fast-growing tech company explains why he eliminated almost all noncompete agreements for his employees.] None of us would tolerate limitations on where we choose to travel or live, yet there is passive acceptance of restricting where we can work….(Click link for full article) Source: Onshape CEO John McEleney: Noncompetes hurt workers and their employers – The Boston Globe Share

Duke Hit with Antitrust Suit for Non-Poaching Agreement with UNC

Were Duke University and the University of North Carolina wrong to agree to not solicit each other’s employees, or, as this article suggests, did they just do it the wrong way? Unlike California, North Carolina does not have a ban on employee noncompete agreements. Source: Locke Lord QuickStudy: Duke Hit with Antitrust Suit for Non-Poaching Agreement with UNC | Locke Lord LLP – JDSupra Share

Can the Senate stop low-wage employers from tying up workers with non-competes?

U.S. Senators Al Franken and Chris Murphy think so. Today they will introduce  a bill titled the Mobility and Opportunity for Vulnerable Employees (MOVE) Act to try to accomplish this. It would ban noncompete agreements for workers making less than $15 an hour, or $31,000 a year, unless the minimum wage in their jurisdiction is higher. Source: Can the Senate stop low-wage employers from tying up workers with non-competes? Share

Want More and Better Jobs? Ban Noncompetes. – Newsletter 7

Want More and Better Jobs? Ban Noncompetes. I. The Problems – There are Fewer New Businesses and Fewer Well-Paid Jobs in the U.S. Than Before the Great Recession II. A Solution – Employee Noncompete Agreements Hurt Labor Mobility and Business Formation, and Should Be Banned by State Law III. Noncompetes Proliferate, As Do the Studies That Criticize Them   I. The Problems – There are Fewer New Businesses and Fewer Well-Paid Jobs in the U.S. Than Before …