CXO

Litigation over non-competes on the rise

Legal and HR experts are seeing an increase in the number of noncompete lawsuits filed by companies.

Legal and HR experts are seeing an increase in the number of noncompete lawsuits filed by companies.

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In the present touch economic environment, it seems that more and more companies are taking precautions to protect their business. According to workforce.com:

As many executives are taking extra measures to protect their companies during the economic downturn, employment attorneys are seeing an increase in litigation around trade secrets. Specifically, employers are being more aggressive about suing former employees regarding noncompete agreements, attorneys say.

In the past, the majority of litigation around noncompetes has involved key executives or salespeople at the firms. But now, [experts are] seeing more litigation involving junior and midlevel employees. Even in these tough economic times, top-performing employees can be offered positions elsewhere, and companies want to be prepared for that.

This could become a very dicey situation in light of the increasing numbers of employee layoffs. Some people could not only lose their jobs but consequently be kept from accepting new positions.

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Toni Bowers is Managing Editor of TechRepublic and is the award-winning blogger of the Career Management blog. She has edited newsletters, books, and web sites pertaining to software, IT career, and IT management issues.

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