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Non-Compete Blog

Posts from August 2013.

As courts historically have disfavored broad restraints on competition, judges tend to strictly scrutinize restrictive covenants when employers seek to enforce them. See BDO Seidman v. Hirshberg, 93 N.Y.22d 382, 389 (N.Y. 1999).

A recent case in Supreme Court, New York County, addressed the issue of whether the services provided by the employee to be enjoined were unique such that an injunction was warranted. In OTG Management, LLC v. Konstantinidis, 967 N.Y.S.2d 823 (N.Y. Sup. Ct. 2013), a provider of food and beverage services at airports tried to prevent a former “terminal director,” Konstantinidis, from working for a competitor. 967 N.Y.S. 2d at 824. When OTG hired Konstantinidis, the company required him to promise that if he left OTG he would not work for “a competitor at any airport in the United States” for a full year after leaving. Id. Shortly after being promoted from an “Operations Manager” at LaGuardia to a “Terminal Director” at JFK, Konstantinidis left OTG and began working for a direct competitor, SSP, at a neighboring JFK terminal. Id.

The Protocol for Broker Recruiting governs the employment transitions of registered representatives of financial firms, broker-dealers, and wire-houses. Signed with the stated goal of ensuring client privacy while enabling client freedom of choice, the Protocol allows a departing representative to take certain limited client information to his or her new firm. The departing representative can then immediately solicit past clients so long as both the former and hiring firm are signatories to the Protocol, the departing representative does not begin to solicit his or her clients before resigning, and the departing representative leaves behind a list of the information he or she has taken.

LinkedIn has long been considered “Facebook for the workplace” and while it is common knowledge that your Facebook page is not really private, your LinkedIn page may not really be yours. Recent court decisions have started to cast doubt about whether you own your LinkedIn account and contacts or whether your employer may have a better claim to it than the person whose name and profile picture appear at the top of the page.

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