View Our Practice Areas

Enforcing Covenant Not To Compete Agreements During COVID19

For the past six months, hundreds of thousands of employees across the nation have experienced furloughs or lay-offs; and many are bound to Covenant not to Compete Agreements with their former employers. Non-Compete Agreements have a history of shifts in their use; first they were restricted, then allowed, and shifted to a broad use - which is what we currently see. But with both parties - employers and employees - experiencing loss of revenue and salary reductions during COVID19, the big question is: How are courts enforcing Covenant Not to Compete Agreements?

While this has been an interesting development to observe; we are seeing both courts and businesses take different approaches in the enforcement of them. While courts are still allowing the enforcement of Non-Compete Clauses, but they are conducting more in-depth measures to evaluate the fairness of those agreements. Evaluating some agreements in-depth, it's eye-popping to see the facts ultimately change the outlook of some Non-Compete Agreements.

For example, there is a case in Pennsylvania where a 31-year employee of a sports retailer was furloughed by his employer due to COVID-19. Despite no longer working for the sports retailer, and the employee not having a new position lined up, the sports retailer attempted to enforce the signed Covenant Not to Compete Agreement - further hindering his ability to find a job.

With increased pressure on Business owners, we recommend talking to your business attorney and getting a second look at your Non-Compete Agreements. Certainly while we are still uncertain of the road ahead; it is recommended to prepare for whatever could come next. Our experienced Business Attorney Brandon Grysko can help guide your business through these challenging times, Brandon Grysko can be reached by email or by phone at (248) 912- 3240.

No Comments

Leave a comment
Comment Information
Email Us For A Response

Contact Our Firm

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Office Location:
41700 West Six Mile Road, Suite 101
Northville, MI 48168

Toll Free: 888-674-1189
Toll Free: 800-693-4800
Phone: 248-468-4536
Fax: 248-380-3434
Map & Directions

  • Best Criminal Defense Lawyers in Ann Arbor -2020