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State Employment Law Articles
Article Index » tennessee » restrictive covenants
Report Link Tennessee Court of Appeals Holds At-Will Employee Can Be Forced to Sign a Noncompetition Agreement Upon Threat of Termination.
Littler Mendelson, P.C. - October 02, 2009
On September 23, 2009, the Tennessee Court of Appeals, in Cummings Incorporated v. Terry J. Dorgan, Jr., No. M2008-00593-COA-R3-CV (Tenn. Ct. App. Sept. 23, 2009), held that a noncompetition agreement signed by an at-will employee, under threat of termination, was enforceable. The appeals court specifically rejected the lower court's holding that the noncompetition agreement was unenforceable because it was not supported by consideration and because it allegedly was signed under duress. Rather, the court of appeals specifically held that the noncompetition agreement was enforceable despite the fact that the at-will employee was threatened with termination for refusing to sign it.
Report Link Non-Compete Agreements Automatically Became Property of Successor Company, Tennessee Court Holds.
Jackson Lewis LLP - May 01, 2008
When the owner of a meat processing company changed his business from a sole proprietorship to a corporation, his assignment of all business assets to the new entity automatically included the non-compete agreements entered into years earlier with two independent contractors, the Tennessee Court of Appeals has ruled. This is the first case in that state to address the issue of whether such contracts can pass to a successor company without the express acquiescence of all parties.
Report Link New Law Specifies Physicians' Non-Compete Agreement Requirements.
Ogletree Deakins - August 27, 2007
On June 21, Governor Phil Bredesen signed House Bill 240/Senate Bill 1688, which was the General Assembly’s response to a 2005 case in which the Tennessee Supreme Court declined to enforce a non-compete provision in an employment contract between a physician and a clinic. In Murfreesboro Medical Clinic, P.A. v. Udom, the state’s highest court held that, except for restrictions specifically provided for by Tennessee’s corporate practice of medicine statute, “covenants not to compete are unenforceable against physicians.”

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