At least five enterprise clients followed her to a competitor within two months

A former senior sales leader leaves for a direct competitor. Five high-value clients follow within two months. And a set of restrictive covenants that a lower court threw out? Back in play.

On March 19, 2026, the Delaware Supreme Court reversed a Court of Chancery decision that had dismissed Payscale's claims against its former Senior Director of Sales, Erin Norman, and her new employer, BetterComp, Inc. The ruling in Payscale Inc. v. Erin Norman and BetterComp, Inc. (No. 297, 2025) did not settle whether the covenants are ultimately enforceable — but it made clear that the lower court moved too fast in shutting the case down before the facts could be fully developed.

Here is what happened.

Norman spent years at Payscale, a compensation data and software company. She oversaw sales across the western United States and regularly collaborated with the Chief Revenue Officer and other senior leaders on company-wide strategy. She had access to confidential customer-pricing models, financial reports, and was involved in operations that stretched well beyond her region.

In exchange for agreeing to restrictive covenants — a nationwide, eighteen-month non-compete, a non-solicitation clause, and a confidentiality provision — Norman received 175,000 Profit Interest Units through two incentive equity agreements with Payscale's holding company.

She resigned voluntarily in December 2023. About ten months...

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