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Ensure new employees aren’t bound by noncompetes

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in Employment Law,Human Resources

The 9th Circuit Court of Appeals has said that a former employer may re­­ceive an injunction against a former em­­ployee who works for a competitor when the employee had signed a clear but limited agreement not to compete.

Recent case: Michael signed a noncompete agreement with his former employer that limited his ability to work for a direct competitor in a limited geographic area. Then he quit and went to the competition.

His former employer sued, seeking an injunction. The 9th Circuit Court of Appeals has ordered the lower court to issue one. (Ocean Beauty Seafood v. Pacific Seafood, No. 15-35608, 9th Cir., 2016)

Final note: If you hire employees bound by noncompetes, you may have to defend against a lawsuit and may even have to post a bond if they receive an injunction pending trial.

 

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