Sandwich Chain Jimmy John’s to Drop Noncompete Clauses From Hiring Packets – WSJ

The tide continues to turn in the states against employee non-compete agreements. New York, like most states, allows “reasonable” non-competes to be enforced. New York was able to get Jimmy John’s (and Law360 before it) to agree to drop non-competes from their standard employment contracts by arguing that the agreements placed “undue hardship” on employees that outweighed the legitimate interests of their employers.  Illinois has made similar arguments against Jimmy John’s non-competes. If this trend …

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

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

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 …

Apple and Google Increase No Poaching Lawsuit Settlement 

The employee class action lawsuit against Apple, Google, Intel, Adobe and other Silicon Valley tech companies is nearing settlement. The judge approved an increase in the employee damages from $324 million to $415 million. This represents compensation lost by employees who were not hired away by one of the companies from another company because of a secret agreement between them to avoid competition for existing employees. The companies secretly agreed to not “poach” each other’s …

Business Booms Where Employee Noncompetes Are Banned, Fed Study Infers, But Use in U.S. Grows – Newsletter 5

Dear Readers, I. What Are Employee Noncompete Agreements, and Why Are They Important? II. Richmond Fed Study Ties Detroit Auto Boom to Michigan Ban on Employee Noncompete Agreements III. Richmond Fed Study Ties Silicon Valley Boom to California Ban on Employee Noncompete Agreements IV. Arguments for Employee Noncompete Agreements V. Arguments Against Employee Noncompete Agreements VI. Increasing Use of Noncompete Agreements by Employers VII. Conclusion “By 1914, the Dodge Brothers quit the Ford Motor Company …