Employees May Begin Paying the Price for Challenging Their Non-Competes

04/27/2004

On April 6, 2004, the United States Court of Appeals for the Fifth Circuit decided that a former bank executive who proved his non-compete was unenforceable still had to return over $220,000.00 in profits earned under his stock option agreements with his former employer. Olander v. Compass Bank, --- F.3d --- (5th Cir. 2004). The case arose when Gary Olander exercised his right to stock options and then left his employment with Compass Bank to work for a competitor. Olander then set upon what would be a very costly course of litigation. He filed suit against Compass Bank seeking to have the noncompete provisions in his stock option agreements declared unenforceable.

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