Non-Compete News: Sixth Circuit Gives Attorneys’ Fees to Employer

Executive Summary: This month, the United States Court of Appeals for the Sixth Circuit affirmed a lower court’s award of attorneys’ fees to an employer after it had been granted a preliminary injunction against its former employees. See Kelly Servs. v. De Steno, 2019 U.S. App. LEXIS 875 (6th Cir. Jan. 10, 2019). The employer never received a final determination regarding the enforceability of the non-compete provisions in employment agreements. Nevertheless, because the underlying agreements contained provisions requiring the employees to cover Kelly’s attorneys’ fees in enforcing the agreements, a final determination was not necessary to award Kelly its fees. This decision demonstrates the importance of including attorneys’ fees provisions in employment agreements.