DISCLAIMER: THE INFORMATION CONTAINED HEREIN IS SOLEY FOR EDUCATIONAL PURPOSES. IT IS NOT LEGAL ADVICE OR LEGAL AUTHORITY AND IS ONLY THE AUTHOR’S INTERPRETATION OF THE LABOR AND EMPLOYMENT LAW ON LITIGATING NON-COMPETE MATTERS.
In Nebraska, litigating non-compete matters differs from other jurisdictions due to the state’s unique legal landscape and interpretation of non-compete agreements. Here are key ways in which Nebraska differs in litigating non-compete matters:
- Strict Interpretation of Non-Compete Agreements: Nebraska courts tend to strictly interpret non-compete agreements. While these agreements are generally enforceable, courts closely scrutinize the language and scope of the restrictions to ensure they are reasonable and necessary to protect legitimate business interests. Any ambiguity in the agreement may be resolved in favor of the employee or seller.
- Consideration Requirement: Nebraska law requires adequate consideration for a non-compete agreement to be enforceable. This means that the employee must receive something of value in exchange for agreeing to the non-compete, such as employment, access to confidential information, or specialized training. Courts may invalidate non-competes that lack sufficient consideration.
- Reasonableness of Restrictions: Nebraska courts evaluate the reasonableness of non-compete restrictions, including their duration, geographic scope, and the activities prohibited. Non-compete agreements with overly broad or unreasonable restrictions will be deemed unenforceable. Courts strive to balance the employer’s or buyer’s need to protect legitimate business interests with the employee’s right to pursue gainful employment or seller’s right to operate another business.
- Public Policy Considerations: Nebraska courts consider public policy implications when enforcing non-compete agreements. Agreements that unduly restrict an employee’s ability to work or limit competition in the marketplace may be deemed against public policy and unenforceable. Courts aim to strike a balance that promotes fair competition and economic growth.
- Injunctions and Remedies: In non-compete litigation, employers often seek injunctive relief to prevent the employee from engaging in competitive activities during the litigation. Nebraska courts may grant injunctive relief if the employer can demonstrate irreparable harm and the likelihood of success on the merits. Additionally, employers may seek damages for any losses incurred due to the employee’s or seller’s breach of the non-compete agreement.
- Attorney’s Fees: Nebraska law allows prevailing parties in non-compete litigation to recover attorney’s fees and costs, provided the non-compete agreement includes a provision for fee-shifting. This can influence the litigation strategy and settlement negotiations for both parties.
Overall, litigating non-compete matters in Nebraska requires a thorough understanding of state law, judicial precedents, and procedural requirements. Employers seeking to enforce non-compete agreements and employees challenging their validity should seek guidance from experienced attorneys familiar with Nebraska’s unique legal landscape.
About the Author
Molly Moberg Miller
Adams & Sullivan, PC, LLO
Ms. Miller has been an attorney since 2004 and worked ten years with Amoni Law Offices, P.C. in Aurora, Illinois prior to moving to Omaha and joining Adams & Sullivan. She was Lead Counsel in arbitrations and mediations for personal injury files, and served as Co-Counsel for a large, regional bank conducting commercial and residential foreclosure litigation, and real estate dealings. Her current practice focuses on employment law, non-compete matters, personal injury law and litigation.
