check out www.vlweekly.blogspot.com... A post, and article I read today reminds us, that what we do at work, is not private.
Banks v. Mario Industries, employee spends his time at work, drafting a plan, and ideas for a new, competing business. As he has a noncompete, that prohibits this, he is in big trouble! A computer forensic expert wiped his old computer at work, and low and behold, his business plan appears - and a 1.6 million dollar judgment against him. Scary story, but one where common sense should play a role. If you don't want your boss to see it, don't do it at work, and don't use your office computer!
Friday, September 28, 2007
Tuesday, September 25, 2007
THE BEST WAY TO BEAT A NON-COMPETE CLAUSE
Do you want to know the secret to avoiding the crippling effects of signing a non-compete or non-solicitation agreement? Well here it is….just say “no.” Do not sign the agreement when it is presented by your prospective employer.
Many employers just go through the motions when presenting a non-compete or non-solicitation agreement to prospective employees – they don’t understand what the agreement is all about and what type of conduct would violate the agreement. For other employers, you may want to “negotiate” some of the provisions in the standard contract. You may want to suggest that 2 years is too long of a period of time to prevent competitive conduct. You may suggest that no competition within 50 miles of your current location is more reasonable than the geographically unlimited area contained in the proposed agreement. Finally, you should closely look at the wording of what conduct will violate the agreement. It should not prevent you from engaging in similar but not competitive employment.
We often do our best legal work before the non-compete or non-solicitation agreement is ever signed.
Many employers just go through the motions when presenting a non-compete or non-solicitation agreement to prospective employees – they don’t understand what the agreement is all about and what type of conduct would violate the agreement. For other employers, you may want to “negotiate” some of the provisions in the standard contract. You may want to suggest that 2 years is too long of a period of time to prevent competitive conduct. You may suggest that no competition within 50 miles of your current location is more reasonable than the geographically unlimited area contained in the proposed agreement. Finally, you should closely look at the wording of what conduct will violate the agreement. It should not prevent you from engaging in similar but not competitive employment.
We often do our best legal work before the non-compete or non-solicitation agreement is ever signed.
Thursday, September 13, 2007
NORTH CAROLINA COMPANY SUCCESSFULLY ENFORCES NON-COMPETE
In this blog we try to cover issues and court rulings effecting non-compete and non-solicitation disputes arising in Virginia. However, from time to time we learn of decisions and cases from other states which may be of benefit to our readers and that explains our post today.
On January 13, 2007, two high ranking officers and a sales manager resigned their positions with Warren Oil Company to pursue the purchase of RhinoPak, a contract blender and packager of lubricants and other chemical products based in Highland, Texas. Warren Oil, upon learning of the plans of the ex-employees, filed a lawsuit in the District Court of Harris County, Texas. The lawsuit sought to enforce the terms of the Employee Noncompetition, Nonsolicitation and Confidentiality Agreements signed by the ex-employees with Warren Oil and to enjoin any violations of those agreements.
Warren Oil won their case. The court issued a Temporary Restraining Order which enjoined the ex-employees from soliciting any customer(s) whom they had solicited during the last 12 months of employment with Warren Oil; soliciting or attempting to solicit any employees or contractors of Warren Oil to leave the employment of Warren Oil; and using or disseminating any of Warren Oil’s confidential business information, including customer list, pricing data, formulae, and products.
Read a full account of the case here.
On January 13, 2007, two high ranking officers and a sales manager resigned their positions with Warren Oil Company to pursue the purchase of RhinoPak, a contract blender and packager of lubricants and other chemical products based in Highland, Texas. Warren Oil, upon learning of the plans of the ex-employees, filed a lawsuit in the District Court of Harris County, Texas. The lawsuit sought to enforce the terms of the Employee Noncompetition, Nonsolicitation and Confidentiality Agreements signed by the ex-employees with Warren Oil and to enjoin any violations of those agreements.
Warren Oil won their case. The court issued a Temporary Restraining Order which enjoined the ex-employees from soliciting any customer(s) whom they had solicited during the last 12 months of employment with Warren Oil; soliciting or attempting to solicit any employees or contractors of Warren Oil to leave the employment of Warren Oil; and using or disseminating any of Warren Oil’s confidential business information, including customer list, pricing data, formulae, and products.
Read a full account of the case here.
Wednesday, September 5, 2007
NON-C0MPETE AGREEMENTS IN GEORGIA
Non-compete agreements are by far the most controversial kind of post-employment covenants and are least favored by the courts. However, a recent decision by a Georgia court indicates (at least in that state) the tide may be turning.
A recent decision by the Georgia Supreme Court, Palmer & Cay of Georgia, Inc. v. Lockton Companies, Inc., suggests that state may be changing its approach to the enforcement of non-compete provisions. In this case, the Court went so far as to say that the "business climate in the state of Georgia would be adversely affected if the courts were to refuse to uphold a freely negotiated agreement pursuant to which an employer sought to protect itself."
Baloney! Refusing to enforce onerous non-compete clauses protects the right of free competition. Are we not a capitalist economy? Doesn’t competition benefit the consumer and ultimately the country’s economy by encouraging competition?
Read the Gwinnett Business Journal article.
A recent decision by the Georgia Supreme Court, Palmer & Cay of Georgia, Inc. v. Lockton Companies, Inc., suggests that state may be changing its approach to the enforcement of non-compete provisions. In this case, the Court went so far as to say that the "business climate in the state of Georgia would be adversely affected if the courts were to refuse to uphold a freely negotiated agreement pursuant to which an employer sought to protect itself."
Baloney! Refusing to enforce onerous non-compete clauses protects the right of free competition. Are we not a capitalist economy? Doesn’t competition benefit the consumer and ultimately the country’s economy by encouraging competition?
Read the Gwinnett Business Journal article.
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