Litigation over non-compete agreements on the rise

Litigation between employers and former employees over non-compete agreements and other forms of restrictive covenants is increasing.

In the past few years, employers have dramatically stepped up their use of non-compete agreements to limit what a departing employee can do.

"This is a hot area," said Barbara Jean D'Aquilla, a partner with Fullbright & Jaworski in Minneapolis, who recently spoke at an employment law seminar on this topic.

Many management-side firms have carved out practice groups dedicated to non-compete agreements.

"Ten years ago this was only a small portion of my practice. Today it's over 50 percent," said Peter Steinmeyer, a Chicago management attorney and co-chair of Epstein, Becker & Green's non-compete, unfair competition and trade secrets practice group, which was formed two years ago.

"It used to be these agreements were reserved for the most senior executives. Now they are being used across the board. There are some companies where everyone has to sign one regardless of what position you are in," said Cliff Palefsky of McGuinn, Hillsman & Palefsky in San Francisco, who represents employees.