The Basics | Employer’s Rights | Employee | Elements to Prove | Recoveries | Defenses | Trade Secrets | Procedures and Injunctions | Employment Issues | Settlement Options

The Balance of Interest
An action to restrain an employee from working involves the  court using its powers in “equity” to physically prevent or “enjoin”  conduct. When the court uses its powers in “equity,” it may  consider all surrounding circumstances when deciding whether to  enforce a non-compete clause or agreement.

Surrounding Circumstances
Courts will take into account all surrounding circumstances, such  as the nature of the employer’s business, the subject matter,  the employer’s stated purpose, and how the parties are situated.

Factors to Consider
Some of the factors considered in determining the enforceability  of a covenant not to compete include whether the employee is  an unskilled worker whose services are not unique. In those  instances, virtually any restrain on that employee’s conduct would be unreasonable as having no interference with the  employer’s legitimate business interest.

Another factor is whether that employee had access to customer  lists, trade secrets, proprietary contracts with customers, or the  employer’s personal contacts with important figures in the  employer’s industry. Budget Rent A Car of Washington v. Raab,  268 Md. 478, 302 A.2d 11, 13 (1973). Life Insurance Co. of  America v. Austin, 466 N.E.2d 738 (Ind.App. 1984).Prudential  Ins. Co. v. Sempetrean, 171 Ill.App.3d 810, 525 N.E.2d 1016,  1020 (1st Dist. 1988).

Free Consultation

412.780.0008