Payscale’s Noncompete Tossed by Court Over Unnecessary Scope

Payscale Inc. failed to convince the Delaware Chancery Court to enforce a noncompete agreement against its former senior director of sales, who joined a competitor less than a year after leaving the software company.

The noncompete is “unreasonable in scope, rendering it unenforceable,” and Payscale failed to plead sufficient facts supporting its remaining claims, Vice Chancellor Bonnie W. David of the Delaware Chancery Court wrote in a Monday opinion dismissing the case.

Erin Norman signed two incentive equity agreements with Payscale parent company Sonic Topco LP. The agreement provided Norman profit interest units over a set period of time and ...