The Evolving Law of Employee Noncompete Agreements: Recent Trends and an Alternative Policy Approach

The Law and Ethics of Restrictions on an Employee's Post‐Employment Mobility

“…Employment mobility is generally supported by public policy and favored by employees . Nevertheless, employers have a valid interest in managing their current and former employees' ability to be professionally mobile.…”

“…Yet as companies increasingly rely on the strength of their human capital—in other words, their employees—for generating revenue, the potential economic harm inflicted by departing employees who move to a competitor is increasingly severe. As a result, firms are keen to use all available legal tools to restrict the post‐employment mobility of their valuable employees, even as public policy may be shifting toward prioritizing employee mobility . This tension in the modern workplace also has business ethics implications as employers, employees, and competitors navigate these conflicting economic incentives and policy goals.…”

The Impact of Local Knowledge on Banking

“…Covenants not to compete are contract terms used in various industries that prevent a departing employee from joining a rival enterprise within a specific time period and in a specific geographic area (Garrison and Wendt 2008;Stuart and Sorenson 2003). The scope of these laws varied widely among states and over time, with some states allowing robust labor limitations and others permitting such covenants only under carefully restricted conditions.…”

Legal Foundation of Silicon Valley: Lessons for Asian Hi-Tech Districts

“…After Blake's paper, most if not all states have law review articles on the history of CNCs, state history of CNCs, and on how to draft effective CNCs for enforcement (Toronjo, 2011;Maloney, 2011;Still, 2013). Other papers are updates on trends across the U.S. or suggest approaches to mediate between enforcement and freedom or focus on the application of CNCs as it pertains to different industries like medicine, media, or law (Ingram, 2002;Packer, 2006;Garrison, 2008;Nicandri, 2011). Further papers focus on doctrines to enforce CNCs such as inevitable disclosure or on using theories from other disciplines such as business and philosophy to analyze the application of or theoretical foundations of CNCs (Hannes, 2001;Estlund, 2006;Wardwel, 2009;Hannah, 2010;Bishara, 2012).…”

“…Other approaches are available to courts enforcing CNCs. One is the "all or nothing" rule, which completely prohibits the CNC if any part is unenforceable and the "blue pencil rule" which allows courts to only enforce those parts that are lawful (Ingram, 2002;Garrison, 2008;Nicandri, 2011). Another mentioned but rarely used approach in the U.S., from the U.K. is Garden Leave.…”