Many employers are cutting their work force in response to the realities of the U.S. economy. Smart employees, aware of the economic problems facing their employers, are looking for better jobs in more secure industries and segments of the economy. In both situations, the employee looking for that new job better determine if she/he signed an enforceable noncompete or nonsolicitation agreement with the employer they are leaving and whether the “new employer” will require a similar contractual restriction.
This point was well illustrated in the September 24 Massachusetts federal court decision of Bio-Imaging Technologies, Inc. v. Thomas Marchant. The court ruled in favor of Bio-Imaging, preventing Marchant from violating the terms of his “restrictive covenants” by being employed with competitor M2S, Inc.Bio-Imaging provides laboratory services for clinical trials, helping companies collect data on the safety and effectiveness of their drugs and medical devices before seeking regulatory approval.