logologologo
  • About
    • Firm History
    • Meet Our Team
    • Frequently Asked Questions
    • Glossary
  • Practice Areas
    • Copyright
    • Trademarks
    • Patents
    • Technology Transfer, Contracts & Licensing
    • Intellectual Property Litigation
    • Trade Secrets
    • Internet & Domain Name Disputes
    • Corporate Structuring
    • Business Disputes & Resolutions
    • Estate Planning
  • Industries Served
    • Innovations & Inventions
    • Small Businesses
    • Business-to-Business
    • Technology & Software
    • Consumer Products
    • Engineering & Manufacturing
    • Bio-Tech & Medical
    • Architecture & Construction
    • Vehicles & Transportation
  • The Brief
  • Contact
logologologo
  • About
    • Firm History
    • Meet Our Team
    • Frequently Asked Questions
    • Glossary
  • Practice Areas
    • Copyright
    • Trademarks
    • Patents
    • Technology Transfer, Contracts & Licensing
    • Intellectual Property Litigation
    • Trade Secrets
    • Internet & Domain Name Disputes
    • Corporate Structuring
    • Business Disputes & Resolutions
    • Estate Planning
  • Industries Served
    • Innovations & Inventions
    • Small Businesses
    • Business-to-Business
    • Technology & Software
    • Consumer Products
    • Engineering & Manufacturing
    • Bio-Tech & Medical
    • Architecture & Construction
    • Vehicles & Transportation
  • The Brief
  • Contact
  • About
    • Firm History
    • Meet Our Team
    • Frequently Asked Questions
    • Glossary
  • Practice Areas
    • Copyright
    • Trademarks
    • Patents
    • Technology Transfer, Contracts & Licensing
    • Intellectual Property Litigation
    • Trade Secrets
    • Internet & Domain Name Disputes
    • Corporate Structuring
    • Business Disputes & Resolutions
    • Estate Planning
  • Industries Served
    • Innovations & Inventions
    • Small Businesses
    • Business-to-Business
    • Technology & Software
    • Consumer Products
    • Engineering & Manufacturing
    • Bio-Tech & Medical
    • Architecture & Construction
    • Vehicles & Transportation
  • The Brief
  • Contact
icon for Kim and Lahey law firmby Kim, Lahey & Killough Law Firm
June 16, 20200 comments

Are Your Non-competes Null & Void? 

Why You Should Re-examine Employment Contracts Post COVID-19.

If you had to lay off employees during the global shutdown, there is more than safety to consider as you begin to reopen. Your re-hired employees may need to sign new employment contracts, or you risk not being able to enforce the restrictive covenants employees agreed to when they were first hired.

Earlier this month, pharmaceutical company Novo Nordisk Inc. was prevented from enforcing a confidentiality and noncompete agreement it had with an employee who was briefly laid off and then rehired before leaving to work for another pharmaceutical company.

Novo Nordisk sought to enforce the agreement that prohibited the employee from working for a competitor for a year after the end of his employment. The employee was laid off in 2018 and rehired a few days later but was not asked to sign a new agreement upon his return.

Was there a break in employment?

The court said for the employee to continue to be bound to not compete beyond 2019, “Novo Nordisk would have needed to ensure there was no break in employment.” It relied on the unambiguous language of two documents:

  • The termination letter stated his employment “ended effective August 3, 2018.”
  • The rehire letter offered him a “new position” “effective August 6, 2018.”

The court determined there was a clear break in employment. As such, the employee was no longer bound by the “old” terms of his “previous” employment. Download full findings: Russomano v. Novo Nordisk Inc., 1st Cir., No. 20-1173, 6/2/20.

What to do next.

We want our clients to be aware of the potential pitfalls involved when there’s a break in employment, even when it’s only for a few days. What constitutes a break in employment will depend on the facts of each case, especially the language used in the documents at issue. You will most likely need to re-execute new agreements when employees return to work.

Need our help?

Casey Martens, Employment Law Attorney Kim and Lahey Law Firm

Casey Martens offers services in state and federal employment law, drafting and enforcement of contracts, business disputes involving interference with client relations, defamation, collections and enforcement of non-compete agreements. You can reach her at cmartens@kimandlahey.com.

Tags:
business law business operations employment law non-compete reopening covid-19
“Risky Business” in the COVID-19 Reopening EraPrev
New Warning About Trademark Scams Involving Fake Emails & TextsNext

Latest Posts

Cherishby Cherish Benton

Five Kim, Lahey & Killough attorneys recognized by Best Lawyers 2024

The Kim, Lahey & Killough Law Firm is pleased to announce five of our attorneys are listed in The Best Lawyers in America® 2024 edition, including four...

Five Kim, Lahey & Killough attorneys recognized by Best Lawyers 2024

UncategorizedAugust 17, 2023
Cherishby Cherish Benton

Six Kim, Lahey & Killough attorneys listed as 2023 Legal Elite

From left: Robert Merting, Casey Martens, Hunter Freeman, Doug Kim, Seann Lahey, B.C. Killough Six Kim, Lahey & Killough attorneys have been named...

Six Kim, Lahey & Killough attorneys listed as 2023 Legal Elite

UncategorizedAugust 3, 2023
Cherishby Cherish Benton

U.S. Patent and Trademark Office releases 2022-2026 Strategic Plan

Plan sets priorities that enable the agency’s new mission and vision WASHINGTON, DC (June 7, 2023) — The U.S. Patent and Trademark Office (USPTO) today...

U.S. Patent and Trademark Office releases 2022-2026 Strategic Plan

UncategorizedJune 8, 2023
logo

Kim, Lahey & Killough Law Firm is devoted to helping clients establish, enforce, and leverage their intellectual property rights. With our client-centric focus, we seek to understand your needs and customize legal solutions that best achieve your goals and budgets.


Any results the lawyer or law firm may have achieved on behalf of clients in other matters does not necessarily indicate similar results can be obtained for other clients.
  

Practice Areas

  • Copyright
  • Trademarks
  • Patents
  • Technology Transfer, Contracts & Licensing
  • Intellectual Property Litigation
  • Trade Secrets
  • Internet & Domain Name Disputes
  • Corporate Structuring
  • Business Disputes & Resolutions

Featured Industries Served

  • Small Businesses
  • Business-to-Business
  • Technology & Software
  • Consumer Products
  • Engineering & Manufacturing
  • Innovations & Inventions
  • Biotech & Medical
  • Architecture & Construction
  • Vehicles & Transportation

Contact Information

Upstate SC
Mailing address:
3620 Pelham Road, PMB #213
Greenville, SC 29615
Office: 864.973.6688

Lowcountry SC
6 Carriage Lane, Suite A
Charleston SC 29407
Office: 843.577.9800


Western NC
22 West Main Street, Unit 2
Brevard NC 28712
Office: 864.973.6688

Legal Disclaimer | Copyright © 2023 Kim, Lahey & Killough Law Firm