Category: Post-Employment Restrictive Covenants

Non-Competes, Unsigned Agreement; Quirky Question # 126

Non-Competes, Unsigned Agreement; Quirky Question # 126

Quirky Question # 126: We have a non-compete issue.  Several years ago, we provided our employees with an employment agreement that contained various post-employment restrictive covenants.  When one of our employees left a couple of years later and started competing with us, we took a careful look at the non-compete language in the employment agreement.  Simply put, it was not...

Employment Law in China

Employment Law in China

Best Practices to Ensure that a Non-Competition Agreement is Enforceable in China By Richard Chao and Haidong Yang Introduction After more than a year since the implementation of the PRC Employment Contract Law (the “Law”) (the PRC Employment Contract Law was promulgated on August 5, 2007 and became effective on January 1, 2008; the Implementing Regulations for the PRC Employment...

Quirky Question # 104, Restrictive Covenants in Acquisition Context

Quirky Question # 104, Restrictive Covenants in Acquisition Context

Quirky Question # 104:  We are a high tech company.  We use various post-employment restrictive covenants with many, though not all, of our employees.  For our engineers, our senior managers and other select employees, however, we require non-competition, non-solicitation and non-disclosure agreements. Because of the recent success of one of our software products, we are receiving serious inquiries from two...

Restrictive Covenants Tied to Compensation, Quirky Question # 96

Restrictive Covenants Tied to Compensation, Quirky Question # 96

Quirky Question # 96: Our company is considering requiring our existing and future employees to sign non-competition agreements.  To make the agreements more palatable to our employees, we are considering linking the obligations imposed on the employees to an obligation on the company to compensate the employees if they cannot find suitable alternative non-competitive employment.  We are planning to cap...

Stealing Confidential Information, Quirky Question # 78

Stealing Confidential Information, Quirky Question # 78

Quirky Question # 78: I am the HR Director at our company.  I just learned that one of our most valuable employees has resigned and taken a position with a competitor.  I requested our IT Department to make an evaluation of his computer.  They reported to me that before he left, he emailed to himself and his new employer customer...

California Non-Competes, Quirky Question # 55

California Non-Competes, Quirky Question # 55

Quirky Question # 55: We have a highly mobile workforce, and we are concerned about our former employees going to work for a competitor, stealing our customers, and raiding our employees.  We are a technology based company and have developed proprietary information that would give our competitors an edge if our former employees were to use or disclose it to...

Usurpation of Corporate Opportunity, Quirky Question # 52

Usurpation of Corporate Opportunity, Quirky Question # 52

Quirky Question # 52: I formerly was employed as an engineer of a high tech start-up company.  I worked for the company for several years in a non-management role.  The company struggled to complete its product (or even to get it to work properly).  Because of these ongoing problems, the company had continual difficulties raising money.  Nearly bankrupt, the company...

Restrictive Covenants; Interference with Contract:  Quirky Question # 11

Restrictive Covenants; Interference with Contract: Quirky Question # 11

Quirky Question # 11: Our firm uses non-competition agreements for a number of our key employees.  The non-competition agreement was drafted by our outside counsel who tells us that it is enforceable.  One of our managers who had signed such an agreement recently resigned.  We just learned that she will be starting employment at our primary competitor, in a role...