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Total Articles: 4

Court Finds Broad Non-Disclosure Agreement is Unenforceable Non-Compete

Last week, in the case of Fay v. Total Quality Logistics, LLC, the South Carolina Court of Appeals ruled that language in a non-disclosure agreement was so broad it effectively became an invalid non-compete agreement. The case serves as a reminder for employers to review their non-disclosure and confidentiality agreements to make sure they are enforceable.

Looking to hire? Be careful with non-compete deals

American businesses are starting to hire again. Figures from the Department of Labor show that the unemployment rate dropped to 8.8% in March - down from a peak of 10.6% in January of 2010. As businesses look to hire, many managers will want their new employees to sign non-compete agreements. Such covenants can be beneficial for employers, but only if executed correctly.

COURT REJECTS EFFORT TO REWRITE NON-COMPETE TO MAKE IT ENFORCEABLE (pdf).

A recent South Carolina Supreme Court decision, Poynter Investments, Inc. v. Century Builders of Piedmont, Inc. (May 24, 2010), serves as a reminder that only restrictive covenants that are carefully and narrowly drafted are likely to be enforced. The Poynter Investments ruling reversed a trial court’s decision to modify an overly broad geographic restriction in a covenant not to compete and to enforce the modified non-compete.

When is a Customer List a Trade Secret? (pdf).

Customer list is not a trade secret when the names are readily available.
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