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BT Currents - Hot Topics in Employment Law

22 Dec Nothing Could Be Finer Than To Incorporate In Carolina . . .

If anyone needs another lesson in the benefits of incorporating a company, consider a decision from earlier this week out of the Western District of North Carolina: Magaha v. W&B Trucking Co., et al.   The underlying story is a fairly typical age discrimination claim: longtime worker for company sues after she is permanently laid off at age 67. During her employment, her hours allegedly were cut for no reason and she repeatedly was the subject of age-based jokes and harassment for which she complained,…

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07 Nov Noncompete Roundup – Florida Lack Of Evidence Regarding Long-Standing Or Exclusive Relationships With Customers Invalidates Noncompete Injunction On Appeal

Florida historically has taken a tough stand toward enforcing noncompetes, as a recent state-court appellate case illustrates. For those unfamiliar with Sunshine State law on noncompetes, Florida has a statute that requires noncompete agreements to be (a) in writing, (b) signed by the employee, (c) reasonable in terms of time and geography and (d) reasonably necessary to protect the legitimate business interests of the employer. While protecting customer relationships is considered to be a legitimate business interest worthy of protection, this normally does not extend…

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06 Nov Noncompete Roundup – Oklahoma Fifth Circuit Rejects Contractual Attempts To Bypass Strict Oklahoma Law Against Restrictive Covenants

Many employers would be surprised to learn that Oklahoma has some of the country’s toughest standards when it comes to enforcing restrictive covenants.  The sharp contrast between the laws of the Sooner State and its peers, such as Texas, was recently highlighted in by the Fifth Circuit Court of Appeals in Cardoni v. Prosperity Bank (Case No. 14-20682).   As background, Oklahoma expressly provides that any restraints on a lawful profession, trade or business are void, unless it meets one of a handful of narrow…

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13 Oct Noncompetes In Mexico

I recently had occasion to look into Mexican law regarding non-competition agreements. For those who are unfamiliar with Mexican noncompete law, it can be summarized succinctly: see California. Like the Golden State, Mexico takes a dim view toward non-competition agreements.  In fact, the unenforceability of restrictive covenants is not even a matter of Mexican statute, it’s actually embedded into the country’s Constitution.   Specifically, Article 5 of the Mexican Constitution provides that “the State cannot permit the execution of any contract, covenant, or agreement having…

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28 Sep Enforcing The Phantom Noncompete: Michigan Court Allows Employer To Pursue Noncompete Claim In The Absence Of A Written Document Signed By Employee

It is commonly accepted that to enforce a noncompete agreement against an unfaithful employee, the employer first needs to have a signed, written agreement with that employee. However, a new decision from a federal court in the Western District of Michigan, Stryker Corporation v. Ridgeway, has splashed some cold water on that notion.   The employer in Stryker sued a former employee for breach of his noncompete agreement. Unfortunately for the company, it had no signed version of the noncompete. Jumping on this opportunity, the…

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