Thomson Reuters Practical Law has released the 2024 update to “Preparing for Non-Compete Litigation,” co-authored by Peter A. Steinmeyer.
The Note describes the steps an employer can take to prepare to successfully litigate a non-compete action, the primary options for enforcing a non-compete agreement, and the strategic decisions involved with each option. It discusses gathering evidence, assessing the enforceability of a non-compete, considerations before initiating legal action, cease and desist letters, seeking declaratory judgments, damages, and injunctive relief, and potential remedies available under the Defend Trade Secrets Act (DTSA). This Note is jurisdiction neutral.
Following is an excerpt (see below to download the full article in PDF format):
Non-compete litigation is typically fast-paced and expensive. An employer must act quickly when it suspects that an employee or former employee is violating a noncompete agreement (also referred to as a non-competition agreement or non-compete). It is critical to confirm that there is sufficient factual and legal support before initiating legal action. Filing a complaint for monetary damages or a request for an injunction can backfire if an employer is not prepared with sufficient evidence to support its request.
In recent years, non-competes have been under increasing scrutiny by both federal and state legislatures and regulators (see Practice Note, Non-Compete Agreements with Employees: Federal Efforts to Ban Worker Non-Competes and Limitations on Enforceability). Employers seeking to bind employees to non-competes must consider the possible legal challenges to enforcement when drafting the agreement and the potential risks of entering into an agreement that may face additional scrutiny as the law develops.
This Note discusses the steps an employer can take to best position itself for successful enforcement of a non-compete and the strategic considerations involved with initiating non-compete litigation.
Download the full Practice Note in PDF format: Preparing for Non-Compete Litigation—2024 Update