Other than to protect good will or trade secrets, a non-compete provision intended to prevent a former employee from acquiring an interest in, or becoming an officer or director of, a competitor of the ex-employer may not be enforceable.

Summary of the case:  A stand-alone agreement executed by employee-participants vested in their employer’s profit-sharing plan contained an unusual non-compete provision. 
Continue Reading Court Thwarts Employer’s Effort To Block Vested Profit-Sharing Plan Participant from Obtaining Employment with a Competitor

A federal district court in Nebraska recently issued a significant preliminary injunction preventing trade secret misappropriation and unlawful competition in a contentious dispute between two freight companies.  West Plains, L.L.C. v. Retzlaff Grain Co., Case No. 8:13CV47 (D. Neb., Feb. 26, 2013).

A group of freight forwarders employed by CT Freight allegedly resigned en masse and went to work
Continue Reading Preliminary Injunction Issued By Nebraska Federal District Court To Level The Playing Field in Trade Secrets Dispute

Lane, a 16-year employee of food distributor Nash Finch Co. in Nebraska, was terminated in June 2011. He promptly filed a declaratory judgment suit in a Nebraska state court against his former employer, challenging the enforceability of non-competition clauses in a series of incentive compensation plans in which he was a participant. His challenge included, but was not limited to, the

Continue Reading Controlling The Forum: Nebraska Federal Court Transfers Non-Compete Declaratory Relief Action To Minnesota Federal Court