Non-compete Agreements

Jimmy John’s Settles Case Involving Overzealous Non-competes

Posted on December 14, 2016 by Elaine I. Hogan

The Situation: In June, the Attorney General for the state of Illinois filed a lawsuit against Jimmy John’s, alleging that its non-compete agreement was illegal and unenforceable under Illinois law.  The non-compete applied to all employees, including sandwich makers and delivery drivers, and prohibited them from working in any other business that earns more than 10% of its revenue from selling submarine, hero-type, deli-style, pita and/or wrapped or rolled sandwiches within 3 miles of any Jimmy John’s for two years after their employment with Jimmy John’s ended.…

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Non-compete Agreement Void Based on Misclassification as Independent Contractor

Posted on September 22, 2016 by Elaine I. Hogan

The Situation: You bring someone on as an independent contractor—and as part of the agreement, he agrees to a non-competition provision. If it is determined that you really should have classified the worker as an employee, could that jeopardize the enforceability of the non-compete?…

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Your Customer List May not be as Protected as You Think

Posted on November 4, 2015 by Elaine I. Hogan

The Situation: A sales rep quits and goes to work for a competitor. Naturally, you had him sign both a noncompete and a confidentiality agreement when he first came to work for you. So can’t you stop him from using any customer and pricing information?…

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And Another Non-Compete Bites the Dust

Posted on March 21, 2014 by Elaine I. Hogan

Employers and lawyers alike know how tough it can be to draft a non-compete certain to be enforceable in Virginia.  On March 6, 2013, in an Opinion Letter, Judge White of Fairfax Circuit Court denied a motion for preliminary injunction seeking to enforce a non-compete on the grounds that success on the merits was unlikely based on the overbroad geographic and durational scope of the restrictions.  See Wings, LLC v. Capital Leather, LLC, Case No. CL-2014-9.…

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