Non Compete Agreements a Hurdle When Changing Jobs
Non Compete Agreements have been a part of American businesses for a long time - Non Compete and Non Solicitation agreements are used (as a condition to hiring and sometimes as a condition to retain a job) to protect companies trade secrets, systems and client lists. The use of the Agreements prevented employees from learning the business from the employer, then resigning and going into competition with the employer. That seems okay, doesn't it? However in the current economic market, it is more likely that the employee was "downsized" and is now simply trying to use his training to support his family in tough times. Now the Non Compete and Non Solicitation agreement seems a bit unfair - however, the new facts don't change the enforceability of the document. Non Compete Agreements can affect all levels of employees, but make the news when high-level executives get tripped up.
In mid 2009, coffee store giant, Starbucks, claimed that their former Senior Vice President, Paul Twohig of Hilton Head, South Carolina, violated his non-competition agreement when he accepted a position with rival coffee shop, Dunkin' Donuts.
Starbucks filed a suit attempting to block Twohig from working at Dunkin' Donuts until eighteen months had passed, as stipulated in the non-competition agreement he allegedly signed when joining Starbucks in 2004. Starbucks claimed that Twohig had intimate knowledge of the company's branding and marketing strategies that, if passed on to Dunkin' Donuts, would cause irreparable harm to Starbucks. Starbucks also asked Twohig to return the severance pay he received from them and to pay damages and attorney's fees. Dunkin' Donuts was not named in the suit. In this case the employer and employee were able to resolve the matter outside of the coutroom and in November 2009, Twohig settled with Starbucks and reportedly paid $500,000 to settle the dispute.
There are restrictions on the enforceability of Non Compete and Non Solicitation Agreements in Florida and both employees and businesses should review those restrictions before signing such Agreements.
If you have a question about Non Compete and Non Solicitation Agreements, For your business law needs, please contact Jacksonville, Florida attorneys Wood, Atter & Wolf, P.A. for legal counsel.
Find out more about this story at Dunkin' Donuts executive settles with Starbucks.
