Category: Post-Employment Restrictive Covenants

How Important are Irreparable Injury Provisions in Non-Compete Agreements?

How Important are Irreparable Injury Provisions in Non-Compete Agreements?

Today’s workforce is more mobile than in past generations. Long gone are the days when an employee started and ended a career at the same company. Knowing how to protect your company’s confidential information when a trusted employee leaves can have a lasting impact on your ability to compete. So, what can you do when a former employee goes to...

A Matter of Protocol — Rules for Departing Brokers Trying to Solicit Former Clients

A Matter of Protocol — Rules for Departing Brokers Trying to Solicit Former Clients

Question:  We operate a financial services firm that employs account executives who execute investment trades on behalf of clients.  One of our brokers recently resigned to move to a competitor firm.  With his resignation letter, he included a list of clients he plans to solicit at his new firm.  This list includes clients with whom the broker may have had...

Quirky Question #277: Passage of the Defend Trade Secrets Act

Question: I saw something on the news about some new trade secrets legislation. What’s going on with that? Will it help employers better protect their trade secrets?

Quirky Question # 276: Ex-Employees Gone Rogue

Question: Our company uses agreements to try to protect our confidential and proprietary information. One of our former sales employees recently left us to work for a competing company.  We have evidence he took with him our confidential information about our clients and is planning to use it to sell products to our clients for his new employer.  When we reminded...

Question #273: Crafting a Concrete Non-Compete

Question: Our company uses non-compete and non-solicit agreements that bar former employees from having contact with any client of our company after they leave. One former employee who recently left is now claiming the agreement is invalid because it is “overly broad” in that it bars him from soliciting not only those clients of ours he used to work with,...

Question #272: Competing in California

Question: One of our company’s employees recently left to start a competing business. We think he started this process while he was still employed by us, and that he is probably using information he learned from us.  We’re in California, so I know we don’t have a non-compete agreement with him.  Do we have any other recourse?

Quirky Question #262, An update on Wisconsin non-competes

Quirky Question #262, An update on Wisconsin non-competes

Question: We are a Wisconsin employer that recently lost a number of employees to a direct competitor in our region.  As a result, we are now in the process of having all of our employees sign non-compete agreements prohibiting them from working for a competitor for a limited period of time after leaving our company.  Assuming that the non-compete agreement...

Quirky Question #237, Badger your employees to sign new non-competes?

Quirky Question #237, Badger your employees to sign new non-competes?

Question: We are a Wisconsin employer that has recently lost a number of employees to competing companies in our area. We’re worried our competitors are getting an unfair edge in the market, basically using employees we’ve spent time and resources training to compete against us. It doesn’t seem fair. Unfortunately, it didn’t occur to us to have our employees sign...

Quirky Question #226,  One-Size-Fits-All National Non-Compete?

Quirky Question #226, One-Size-Fits-All National Non-Compete?

Question: We are a business headquartered in Minnesota.  We plan to expand into other states but have concerns with investing the time and money in training new employees in a very competitive industry.  We currently have our Minnesota employees sign a form non-compete agreement.  Can we use that same form agreement for other states where we are expanding?

Quirky Question #212, Montana Non-Competes

Quirky Question #212, Montana Non-Competes

Question: We are an accounting firm and recently fired an employee at will.  We have always understood that Montana law disfavors non-competition agreements, therefore, our employment agreement provides that if the accountant provides services to our clients within six months of leaving, he will pay us the profits from such an engagement which are stipulated to be 75% of gross...