Automile emmaus5/19/2023 Citing to Automile, the BLS first stated that “n anti-raiding covenant in an employment agreement is. Two weeks later, the Business Litigation Session (the “BLS”) of the Massachusetts Superior Court denied a preliminary injunction motion seeking to enforce a no-recruit agreement in Robert Half International, Inc. Thus, while seeming to limit the legitimate business interests protectable by a no-recruit agreement, the decision simultaneously seems to suggest that a no-recruit can be enforced to protect “inside knowledge” of an employer’s workforce, which is likely to be present in many of these cases. ![]() The was thus formulated to ensure that competing business did not gain an unfair advantage by using this inside information, in combination with position as a competitor, to raid. He was also aware of the particular strengths, experience, and training of different. Armed with information about employees’ existing compensation plans, could tailor any solicitation offer to provide more competitive benefits than. For example, the record reflects that was aware of, and perhaps dictated, starting salary at. For those employees he wished to poach, he could use his inside knowledge of the company, including its salary structure and internal management dynamics, to successfully solicit them. From there, the court reasoned as follows:Īs an executive and part owner, was familiar with employee workforce and was well placed to identify key employees integral to the company’s success. Specifically, the noted that, “ar from stifling ordinary competition, the permitted to compete so long as he did not use his inside knowledge to raid key employees.” This is a significant point that is not always so readily accepted by other courts. ![]() (Citations and internal quotation marks omitted.) However, in language that seems to apply regardless of the context in which the no-recruit arises, the court next explained that inside information about an employer’s workforce is confidential information that can support the enforcement of a no-recruit agreement. By contrast, in the buyer-seller context, restrictions are not rendered unenforceable merely because they protect an interest we might not recognize in any employment setting. In the employer-employee context, the legitimate business interests that may be protected consist of trade secrets, confidential information, and good will. McGovern, the Massachusetts Supreme Judicial Court examined a no-recruit agreement arising in the context of the sale of a business, and found the agreement to be enforceable. McGovern Limits Protectable Interests, Sort Of Lanaville (decided just last week, on December 8, 2022). Simon (decided just two weeks later, on January 28, 2020), and Thermal Engineering International (USA) Inc. McGovern (decided January 14, 2020), Robert Half International, Inc. Those cases, in order of when they were decided, are Automile Holdings, LLC v. Take for example three recent cases in Massachusetts concerning no-recruit agreements. One can fish out of it any kind of strange support for anything, if he lives so long.” And, while that observation was specific to noncompete law, it applies with equal force to other restrictive covenants as well, including no-recruit agreements (also known as “no-raid” agreements). It is a sea - vast and vacillating, overlapping and bewildering. To the contrary there is so much authority it drowns him. Witter, “This is not one of those questions on which the legal researcher cannot find enough to quench his thirst. Much like the Ohio Court of Common Pleas observed in 1952 in Arthur Murray Dance Studios of Cleveland, Inc. v. The answer, however, is not as clear as it may seem. Accordingly, to determine what legitimate business interests can (and cannot) be protected by other restrictive covenants, we need to look to preexisting common law. This limitation does not, however, apply to most other types of restrictive covenants. ![]() Since October 1, 2018, the legitimate business interests that can be protected by an employee noncompete in Massachusetts are limited to trade secrets, other confidential information, and goodwill. To embed, copy and paste the code into your website or blog: No-recruit agreements: not just about trade secrets, confidential information, and goodwill… maybe
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