On many occasions I have blogged on this site about non-compete agreements and their enforceability. In summary, the enforceability of these agreements is based upon the language in your respective agreement and the state’s law that applies. When you have a non-compete you want to be aware of your rights under the agreement before you violate its terms to avoid a situation where your former employer seeks an injunction to prevent you from working for the new company. Case in point, former Wal-Mart executive Hank Mullany.
CVS Caremark Corp named a recent Wal-Mart Stores Inc executive as the president of its retail pharmacy business, but a judge temporarily blocked him from taking the job due to a noncompete agreement with Wal-Mart.
Wal-Mart’s lawsuit seeks to bar the appointment of Hank Mullany, who served as president of the discount retailer’s northern U.S. division until November 5. In the lawsuit against CVS and Mullany, filed in Delaware Chancery Court late on Thursday, Wal-Mart said the move would violate the noncompete agreement. CVS is seeking to employ Mullany as of December 6, but Delaware judge Travis Laster granted a temporary restraining order preventing Mullany from working for CVS until a December 15 court hearing.
Wal-Mart said it was suing to enforce the noncompete agreement and prevent Mullany’s employment with CVS, one of the largest U.S. pharmacy chains along with Walgreen.
As a Wal-Mart executive vice president, Mullany oversaw more than 1,300 stores in 19 states, the lawsuit says. He was also overseeing the company’s push into urban and rural markets by opening stores that are less than one-fifth the size of its traditional format.
If you have a non-compete hire an employment lawyer to review its terms and advise you on its enforceability as well as help you to formulate a strategy on how to deal with the agreement in the future. Behren Law Firm has litigated and advised clients on many non-compete agreements and would be happy to help.