Restrictive Covenants & Non-Compete Agreements

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Businesses invest significant time and resources in developing customer relationships, confidential information, and institutional knowledge. Restrictive covenants can help protect these valuable assets when employees transition to new opportunities. Dickinson Wright’s Labor & Employment attorneys assist employers with the drafting, enforcement, and defense of non-compete, non-solicitation, confidentiality, and other restrictive covenant agreements.

Our attorneys advise clients on a range of restrictive covenant matters, including non-compete agreements, non-solicitation agreements, confidentiality agreements, and other employment-related restrictions. We work with employers to develop agreements that align with business goals while navigating evolving legal requirements and limitations on employee mobility.

We assist clients with:

  • Drafting and reviewing non-compete, non-solicitation, confidentiality, and other restrictive covenant agreements
  • Advising employers on the enforceability of restrictive covenants under applicable state laws
  • Negotiating employment agreements and executive compensation arrangements involving post-employment restrictions
  • Protecting trade secrets, confidential information, and customer relationships during employee transitions
  • Advising on employee departures, hiring decisions, and potential violations of restrictive covenants
  • Pursuing and defending litigation involving restrictive covenant disputes, including requests for injunctive relief

Our Labor & Employment attorneys help businesses balance workforce mobility with the need to protect legitimate business interests.

Representative Matters

  • Obtained a preliminary injunction on behalf of a healthcare services company against former physicians who violated non-compete provisions in their employment agreements. Successfully defended the enforceability of the restrictive covenants through trial court and appellate proceedings, including establishing precedent regarding the modification of unreasonable non-compete provisions.
  • Successfully defended a clinical laboratory and its founders in litigation involving trade secret misappropriation, breach of contract, and violations of non-compete and non-solicitation agreements. After defeating two motions for preliminary injunctions and engaging in extensive motion practice, obtained summary disposition on all claims.
  • Assisted a company in enforcing a non-compete provision contained in an operating agreement during a member dispute involving allegations of a competing business, diverted company opportunities, and breaches of contractual and fiduciary obligations.
  • Negotiated restrictive covenant agreements as part of a private equity acquisition involving management and equity holders. Helped address competing stakeholder interests and develop post-closing restrictions aligned with the transaction’s objectives.
  • Obtained a favorable judgment for a healthcare practice in litigation involving the enforcement of restrictive covenants against a former employee who began competing in violation of employment and severance agreements. Through strategic motion practice and discovery efforts, secured dismissal of counterclaims, an award of liquidated damages and attorneys’ fees, and successfully defended the judgment on appeal.
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