Employees to Pay Attorneys Fees for Enforcement of Non Compete Agreement

When three employees left the employment of Kelly Services, a staffing agency based in Minnesota, and went to work for a competitor, the agency filed a suit alleging a violation of their contract’s non compete clause. Kelly Services obtained a preliminary injunction that lasted through the one-year duration of the non compete agreement. When the injunction was lifted, the employer continued the case seeking attorneys’ fees. The non compete clause required the employee to pay all attorneys fees incurred to enforce the agreement. The clause did not specify that the employer must prevail in order for employees to pay the attorney’s fees. The U.S. Court of Appeals for the Sixth Circuit agreed with the employer. This case may give employers cause to review their non compete agreements in light of their own state laws. Read more here.