Michigan noncompete law

Springing noncompete restrictions on job applicantsCVS Pharmacy Inc. sued online pharmacy retailer Capital Rx Inc., claiming the web-based business is trying to keep a former employee from working for CVS. The lawsuit, filed on 9/16/2021, claims Capital Rx’s noncompete agreement violates Massachusetts law.

Why It Matters:

CVS’ lawsuit highlights an all-too-common issue new hires often face – the surprise non-compete

unfair competition
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President Biden signed an Executive Order broadly targeting anti-competitive tactics that disadvantage smaller businesses and people.

One aspect of this order targets the use of noncompete agreements. Under the Order, the Federal Trade Commission (FTC) is encouraged to ban or limit noncompete agreements.

The noncompete provision of the Order

Noncompete Ripple EffectA recent court opinion is a cautionary tale for business owners and entrepreneurs and their attorneys about the importance of protecting attorney-client communications. It is also a reminder of how easily that privilege can be inadvertently waived and the downstream impact it can have on noncompete disputes.

The Decision

The court opinion comes from a

Trade secret competitionEcolab Inc. sued a former marketing manager, Preston Alexander, alleging he used stolen trade secrets to set up a rival business in violation of the federal Defend Trade Secrets Act and related claims. Ecolab seeks the immediate return of its confidential information and damages for contract breach and trade secret misappropriation.

Why it Matters:

Ecolab’s

noncompeteMichigan’s Attorney General (AG) Dana Nessel joined 17 other State Attorneys General to respond to the Federal Trade Commission’s (FTC) request for public comments. These comments concern the FTC’s public hearings on Competition and Consumer Protection in the 21st Century. Ms. Nessel’s response echoes a growing concern across the United States about the use and

Best practice noncompete enforcementA recent non-compete related law in Oregon caught my attention. Specifically, Oregon law (HB 2992), provides that noncompete agreements entered into after January 1, 2020, will only be enforceable against Oregon employees if the employer provides the departing employee with a signed copy of the agreement within 30 days after the employee’s date of termination.

The office share company WeWork Cos. reached a settlement with attorneys general of New York and Illinois over requiring most employees to sign over-broad noncompete agreements.

The Wall Street Journal, by Eliot Brown, reported that WeWork previously required most employees, including baristas and receptionists, to sign agreements barring them from working at similar businesses for

On January 8, 2018, the U.S. Supreme Court declined to consider an appeal from a former Stryker Corp. sales representative. The appeal arose from a case involving a non-compete agreement between a Louisiana employee and a Michigan employer.

The non-compete agreement contained a forum-selection clause stating that any dispute arising out of the agreement must

Enforcing noncompete agreement A recent noncompete case from Minnesota offers a cautionary tale for employers and cause for celebration for employees.

The case, Safety Center, Inc. v. Stier, (11/6/17), involved an employer that ran a treatment center for special-needs sex offenders. The employer sought to enforce its noncompete agreement against a former program director (Stier).

The noncompete

Amendments to the Michigan Business Court SRevising Michigan Business Court Disputestatute go into effect today, October 11, 2017. These amendments primarily focus on clarifying the cases that are to be assigned to business courts.

Also, the statute was amended to clarify a Business Court’s jurisdiction to hear business disputes involving equitable or declaratory relief. The amendment now clarifies