Dive Brief:
- According to a Wall Street Journal article cited by Slate, a reporter changed jobs from one media company to another (Law360 to Reuters), but was fired by the latter company when it found out she had signed a noncompete clause two years before.
- The reporter, Stephanie Russell-Kraft, told the Journal she forgotten she signed it and now she's having problems finding another new job.
- Slate reports that based on the concept of noncompete agreements (they are meant to protect a company's intellectual property, such as client lists, etc.), New York Attorney General Eric Schneiderman may look into the situation because he believes Law360's actions have run afoul of the state's labor laws.
Dive Insight
The Journal reports that past court rulings in New York greatly limited the use of noncompete agreements, but Law360, in its defense, says their reporters had access to "critical and sensitive" business information.
According to legal experts, noncompete clauses should be made very clear, especially with today's highly litigious employment law situation. In this case, it will be interesting to see how things progress, because this may be the first time ever a journalist was held to a noncompete agreement. Companies that use noncompetes must consider the negative media coverage as well as the possibility of facing legal action from state regulators. In a couple of states, noncompetes are not permitted at all.
