Honoring your word: Rhode Island federal court upholds noncompete

Although some observers may not applaud how noncompete agreements restrict labor, the courts will step in and enforce them if they’re reasonable, as one employee recently learned.

Working for Upserve, Inc.

David Hoffman had a good career with Upserve, Inc., which provides restaurants with an array of “data analytics” to improve their business. For example, they can use the company’s software and hardware to process payments, review inventory, and monitor customer dining history and consumption. Hoffman himself described his employer’s analytics as the “best in the industry.”

Upserve’s feelings about Hoffman were reciprocal (until his lawsuit). He began as a VP of business development in July 2014 and was promoted three years later to VP of corporate development. In December 2018, he earned another promotion, this time to executive VP of product. To gain the last bump, Hoffman generated a “product roadmap,” which analyzed Upserve’s market and competitive landscape. He was now the “key leader and driver” of the company’s competitive business and product strategy.

Along the way, Hoffman entered into confidentiality agreements, the most recent of which was an employment and restrictive covenants agreement signed in July 2017. It included: