A Case Study on Attacking Noncompete Agreements

January 2007 Mid-Atlantic Executive Legal Advisor

In today’s business environment, where a company’s revenues may depend on its ability to operate new businesses or grow existing ones, the practice of hiring executives, managers and employees away from competitors is commonplace. In many cases, however, star candidates may be subject to agreements not to compete with their present employer that, if properly drafted, may preclude them from being employed by a competitor. If a company hires a candidate who is restricted by such a noncompete agreement, the former employer will not only sue the employee for breaching the agreement, but likely will sue the hiring company for interfering with the contractual relationship with the employee.

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