Empirical Analysis of Noncompetition Clauses †MyAssignmenthelp

Question: Discuss about the Empirical Analysis of Noncompetition Clauses. Answer: Introduction: A non-compete clause in a contract prohibits an employee from engaging themselves in any other company which is in competition with the present work place of the employee (Bishara, Martin Thomas, 2015). Employers require employees to sign non-compete clauses to prohibit them from divulging trade secrets or entering into any competition with them after their termination. In the present case, DCS is a sanitation management company, which had sued three of its former employees for breach of non-compete clause which was overturned by the district court. The factor the court took into consideration was that the clause had expired a year ago and the court allowed the summary judgment in favour of the employees because according to Nebraska law there has been no breach of contractual obligations. The court denied the claims of DCS in applying for temporary injunction and also supported a grant of summary judgment in favour of the employees. The court opined that the laws if Nebraska will apply because it will take care of the fundamental rights of the employees. The court held that though the agreement mandated the applicable law to be Ohio, Nebraska has more interest materially in the subject matter and therefore Ohio law was not in consonance with Nebraska Law and applying the same would fundamentally violate the authenticity of Nebraska Law (Cihon Castagnera, 2017). The agreement clearly mentioned that Ohio law will apply whereas the court had applied Nebraska Law because that law is more materially related to the agreement and applying the same has more material connection without having to breach the fundamental rights of the employees (Marx, Singh Fleming, 2015). The court held that Nebraska gives more emphasis on the parties rights and having a broader ambit, Nebraska law will have an ethical bearing on the agreement. Reference Bishara, N. D., Martin, K. J., Thomas, R. S. (2015). An empirical analysis of noncompetition clauses and other restrictive postemployment covenants management.Vand. L. Rev.,68, 1. Cihon, P. J., Castagnera, J. O. (2017). Employment and labor law (9th ed.). Boston, MA: Cengage Learning. Marx, M., Singh, J., Fleming, L. (2015). Regional disadvantage? Employee non-compete agreements and brain drain.Research Policy,44(2), 394-404.