A recent Michigan trial court decision from the Oakland County Circuit Court illustrates the significance that noncompete agreements can have for employers and individuals who sign such agreements.
Specifically, Crain’s Detroit Business reported that an Oakland County Circuit court entered a judgment in excess of $2 million against Matt Prentice, a former employee and a well-known Metro
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
Noncompete agreements and other restrictive covenants are customarily found in employment agreements and provided for in the sale of a business.
In the employment context, companies simply do not want a former employee to take its business and set up shop or to go work for a competitor. In connection with the sale of a
On August 6, 2013, the Sixth Circuit Court of Appeals (the federal jurisdiction that includes Michigan) ruled that provisions in employment agreements that shorten the statute of limitations period in which employees are permitted to file claims under the Fair Labor Standards Act (FLSA) and Equal Pay Act (EPA) are invalid.
Specifically, in Boaz v
Noncompete agreements have become a staple of the employment relationship. These agreements are intended to give employers the ability to protect their business against unreasonable and unfair competition. Such competition usually takes the form of a former employee directly competing against the employer either by starting a similar business or jumping ship for competitor.
It may sound odd for a noncompete attorney to say this, but when it comes to enforcing a non-compete restriction, the applicable law is often less important than the context in which the noncompete restriction arises.
To better understand this point, consider that noncompete restrictions, sometimes referred to as covenants not to compete, often arise
A little bit of knowledge can be a dangerous thing, especially when legal issues are involved. This truism makes the Internet a virtual minefield for the unwary looking for “free legal advice,” which often happens in the area of post employment restrictions and noncompete agreements. As discussed below, however, a noncompete lawsuit arising from incomplete
Business owners had a lot to cry about when it came to 2012 Michigan court decisions addressing noncompete agreements.
But, as discussed below, a lot of this frustration arose out of poorly drafted noncompete agreements and failing to fully evaluate the relevant circumstances involving changing employment relationships before reducing those changes to written employment agreements.
Companies routinely require employees to sign noncompete agreements. But what happens to these employee noncompete agreements if your company offers that same employee stock options or other opportunities to acquire an ownership interest in the company?
As explained below, when an individual transitions from employee to owner or plays the dual role of employee/owner, companies
The storm that has devastated the U.S. east coast has been dubbed “Frankenstorm” because of the devastating effect of a number of separate natural conditions coming together to create a monstrous “super storm.”
While with less devastation and real-life danger, employers often experience their own employment storms as a result of stitching together various