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ARTICLE · 12 DECEMBER 2024

Legal Precedent On Restrictive Covenants In Employment Agreements—A Case Study

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A recent Alberta Court of King's Bench decision, People Corporation v Quinn et al. (2024 ABKB 711), offers valuable insights into how courts balance the enforceability of restrictive covenants, employee rights.

CanadaEmployment and HR
James Heelan
James Heelan
Laura Inglis
Laura Inglis
Sarah Huot
Sarah Huot
Matthew Riskin
Matthew Riskin
Jenna Vivian
Jenna Vivian
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Employee restrictive covenants are often a contentious issue, especially when employees leave to form (or join) competing firms.

A recent Alberta Court of King's Bench decision, People Corporation v Quinn et al. (2024 ABKB 711), offers valuable insights into how courts balance the enforceability of restrictive covenants, employee rights, and employer interests. This case revolves around allegations of breach of restrictive covenants and the legal intricacies involved in assessing their validity.

Case Background

The case stems from People Corporation's share acquisition of Lane Quinn Benefit Consultants Ltd. (LQBC). As part of the acquisition, Jay Quinn, LQBC's majority shareholder and CEO, signed an Executive Employment Agreement (EEA) and a Restrictive Covenants Agreement (RCA). Mr. Quinn later resigned from People Corporation to establish a competing firm, Quinn Advisory Group (QAG), and subsequently hired three former LQBC employees.

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