Courts historically enforce non-compete agreements in personal service contracts provided they are reasonably related to a legitimate business purpose, and are otherwise fair, based on all the circumstances. Under Massachusetts law, factors to consider in determining whether a non-compete agreement is reasonable are whether the covenant: (1) is supported by consideration; (2) serves a legitimate business interest; (3) is reasonably…
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Developments in the Dynamic World
of Business and Employment Law
A recent United States Supreme Court decision, WAL-MART STORES, INC. v. DUKES ET AL. dealt a significant blow to plaintiffs in a nationwide class action gender discrimination case by denying class action status to Wal-Mart employees. Even though this Supreme Court decision has given Wal-Mart and other employers a leg up against future class actions alleging wide-spread discrimination, the decision does not…
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As the economy continues to sputter along, both federal and state taxing agencies have been aggressive in pursuing businesses that misclassify workers as ‘independent contractors’ rather than ‘employees.’ Taxing authorities and government coffers are deprived of valuable revenue when businesses misclassify employees as independent contractors. For employees, businesses are required to pay payroll taxes, workers compensation insurance coverage, social security,…
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The Massachusetts Attorney General’s office (“AG”) recently announced that it had entered a consent judgment with Briar Group, LLC, a restaurant operator, due to Briar’s 2009 release of patron credit card information at the hands of computer hackers. Briar was notified of its data breach on October 29, 2009, but did not remove the ‘malware’ from its network until December…
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The Demoulas saga continues in Massachusetts. This ugly family feud has kept dozens of lawyers, the courts and even the bar licensing authorities busy for many years. In this newest skirmish, a superior court judge has ruled that minority shareholders do not owe a fiduciary duty to the corporation when selling their stock even though by selling their shares the…
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We discussed the general standards for enforcing non-compete agreements in a prior blog post. A recent decision from the Plymouth Superior Court highlights the fact-specific nature of the analysis in evaluating the enforceability of a non-compete agreement, and reinforces the risk to employees who carelessly enter such agreements with an employer. The Defendant, Daniel McKinnon, took a hair stylist position…
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If you sign a contract in Massachusetts, the New England Patriots may be largely responsible for the enforceability of certain damages provisions set forth in the agreement, known as a “liquidated damages clause.” Liquidated damages clauses are designed to represent a reasonable forecast of damages expected to occur in the event of a breach, particularly where actual damages are difficult…
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In a Massachusetts Superior Court decision, issued at the end of 2010, Charm v. Kohn, 27 Mass. L. Rptr. 421, 2010 WL 3816716 (Mass. Super. 2010), the Court ruled that an email that a client intended to send only to his lawyer, but which was accidentally sent to opposing counsel, was not admissible evidence. However, the Court warned that such…
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