President Obama's final term is coming to a close, and we find an article in Fortune about his October pitch to ban non-compete agreements, which the author says would "make the rich richer."
Ten years ago very few people were asked to sign contracts that included non compete, non solicitation and confidentiality provisions. Today, that practice seems commonplace. And in today's economy, we see people nearly every week who, after leaving a job on their own or by firing, receive a letter from their former employer threatening a lawsuit and/or demanding that the person either inform the new employer about the restrictive covenants, quit or stop working in their chosen field.
Our readers may or may not be aware of a New York City-based PR Newswire. The company was apparently started in 1954 and was hired by companies and agencies to distribute the text of press releases to media sources. At present, PR Newswire is hired by corporations, non-governmental organizations and public relations firms to distribute news and multimedia content. PR Newswire and its rivals distribute thousands of corporate press releases daily, as well as earnings and other announcements.
In our last post, we noted that Boston Scientific Corp., a major manufacturer of medical devices, has hired a senior executive who formerly headed up the medical devices and diagnostics division of its arch rival, Johnson & Johnson (J&J).
The Johnson & Johnson Company (J&J) has apparently successfully wielded the terms of an existing employment agreement with one of its senior executives to limit the capacities in which a competitor may employ him, at least for a time.
Our Washington readers may be interested in a non-compete case out of South Dakota which, as headlines point out, tests the limits on how far hospitals can be restricted in their ability to include non-compete agreements in physician contracts.
According to Reuters, Capital One Financial Corporation recently filed a suit in U.S. District Court for the Eastern District of Virginia against its former CEO John Kansas for breaching a non-compete agreement. The lawsuit was filed last Thursday.
One question that both employees and employers often have is whether non-compete agreements are enforceable.
Recently, Google announced an exciting new product that will allow customers to pay for items digitally, by simply tapping their phone to a payment counter. The same day Google announced its new product, PayPal decided to file a suit against the internet giant and two of its former executives who had apparently been involved in developing the technology. That technology has been estimated as having a $1 trillion opportunity market.
Bath and Body Works' 1,600 store subsidiary Limited Brands Inc. announced last week that its current CEO will be leaving the company, after four years, at the end of the summer to work as an adviser from San Francisco. Limited Brands Inc. also announced the name of the replacement, who formerly served as the president of Lands End, a Sears Brand.