Tag Archives: Michigan noncompete agreement

Revising Non-compete Law to Eliminate Unfair Competition

Non-compete agreements are intended to prevent unfair competition. But they often create unfair advantages against employees and start-ups. And these unfair advantages adversely affect individuals and the overall economy. At least that is the take-away from a recent op-ed in the New York Times. Noncompete Restrictions and the Economy Specifically, Prof. Orly Lobel wrote in Companies Compete but … Continue Reading

Buying or Selling a Business? Don’t Forget to Consider Employment and Non-compete Agreements.

The decision to sell a company involves many considerations. One important – but often overlooked – consideration is the value that should be derived from having enforceable employee and non-compete agreements. However, all too often, due diligence fails to critically assess the enforceability or transferability of non-compete restrictions. As discussed below, the value of the … Continue Reading

Trade Secret Computer Inspections Should Require More than Knee Jerk Reactions

A lawsuit involving trade secret misappropriation recently brought to mind the definition of a “knee-jerk reaction;” an “automatic and unthinking” response. Specifically, our law firm filed a lawsuit for breach of contract involving unpaid commissions and other claims on behalf of a former executive. In response, the former employer manufactured filed a counter-claim for trade secret misappropriation … Continue Reading

CEO’s “Reckless Texting” Wrecks Lawsuit to Enforce Noncompete Agreement

Texting as a reckless activity is well-documented when it comes to driving. It is also noted as an increasing health hazard for “petextrians” (pedestrians who are texting, clever huh?) according to Ben Zimmer of the Wall Street Journal in his article “What Do You Call a Reckless Texter?” But can it be “reckless” for your company’s non-compete agreements? … Continue Reading

Is Your Non-Compete Agreement Enforceable? Depends on What Law Applies.

A recent Delaware court case invalidating an employer’s non-compete agreement provides a cautionary reminder for companies with operations and employees in multiple states. Specifically, in Ascension Ins. Holdings, LLC v. Underwood (Delaware, Jan. 28, 2015) the company, Ascension was incorporated in Delaware, but headquartered in California. California was also where the employee, Roberts Underwood worked. … Continue Reading

Proposal Would Significantly Limit Use of Noncompete Agreements in Michigan

A proposed Michigan House Bill was recently introduced that would significantly limit the use of noncompete agreements (sometimes called covenants not to compete) in Michigan. Such agreements often restrict individuals from working for a competitor or other post-employment activities. Specifically, State Represntative Peter Lucido (R) introduced HB 4198 on February 12, 2015, which has since been referred … Continue Reading

The Challenge of Balancing Noncompete Agreements with Business Growth

In a previous post (Noncompete Agreements – A Hurdle to Employment and Innovation?), we discussed research that suggested noncompete agreements hinder innovation. Expanding on why innovation is hindered, in any context in which a noncompete agreement is entered into e.g., an employment relationship, a founder whose start-up is being acquired, or an owner selling his or her … Continue Reading
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