Insurer NavSav Can’t Enforce Noncompete Against Nebraska Agents

Two Nebraska insurance agents convinced a federal judge to preliminarily block their former employer from enforcing restrictive noncompete provisions in their employment agreements.

The US District Court for the District of Nebraska on Tuesday said that these employment agreements were unenforceable because the noncompete provision is “linked with non-solicitation provisions that violate Nebraska public policy.”

The insurance agents sued NavSav Holdings LLC to stop it from enforcing the provisions that prevented them from working with a competitor within five miles, soliciting any former customers for three years, or soliciting employees from the company.

The non-solicitation provisions exceed “the permissible scope ...