Alternatives To Non Compete Agreements

This is where a publishing house placed the president of its competitor. Prior to joining the new organization, the President helped the new employer identify employees for potential hires and made the salaries of these employees and other strategic information available to the new employer. The Court held that “the mere fact that the public servant prepares before leaving office was not sufficient to justify a breach of his obligations. It is the nature of his preparations that is important. It is not possible to establish iron conduct rules, for the range of activities in this area is as wide as the ingenuity of man himself. However, because the president was an officer of the company and an agent, the court found that his actions were unlawful and that the former employer could sue him for breach of loyalty. Oregon requires the employer to inform the worker of the restriction of competition in a written job offer at least two weeks before the worker`s first working day. The employer must also prove that the worker is exempt from overtime laws and earns more than the average family income of a family of four. Non-competitions do not apply to employees who do not meet these criteria, even if they sign a non-compete agreement. On the other hand, confidentiality and confidentiality agreements are restrictions that can generally be imposed at the time of employment or during employment and are effective instruments to protect the business interests of companies. Similarly, in many cases, separate restrictions on the collection of customers and employees may protect the business interests of businesses, both during the duration of the agreement and after the separation of a worker from the company. Although rare, some non-competition prohibitions may be imposed on contractors. In such cases, these are often cases where contractors have behaved unethically in the margins of unethical behaviour, taking more unfair advantage of the state of the property that has been specifically derived from a given task.

For example, a Pennsylvania court upheld a non-compete clause in which consultants who had not previously worked in their client`s industry used training and knowledge of working with the client to create a directly competitive business – while they were still working for that client. Synthes USA Distribution, LLC v. Harrison, 38 Pa. D. – C.5th 278 (P.C. 2014). It should be noted that last year, the California Court of Appeal in The Retirement Group v. Galante, the very existence of a business secret is no exception to section 16600.

In other words, as the court said in Galante, “it is not the solicitation of the former employer`s clients, but the abuse of trade secrets that may be prohibited.”

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