News & Analysis as of

Pennsylvania’s Highest Court Rules Continuing Employment Insufficient Consideration for Non-Compete

Do you have workers in Pennsylvania? If so, do you ask them to sign non-competes after they have already been employed with your company for some appreciable time? If you do, you may be obligated to provide them with...more

Pennsylvania Supreme Court Rules That Continued Employment Is Not Sufficient Consideration for Non-Competes Entered Into After the...

In a landmark ruling of first impression, the Pennsylvania Supreme Court recently held that an employer’s non-competition covenant, which included the employee’s pledge not to challenge the covenant for inadequate...more

PA Supreme Court Addresses Consideration Required To Enforce Restrictive Covenants

In a highly anticipated decision, the Pennsylvania Supreme Court ruled earlier this week that “new and valuable” consideration must be conveyed to an employee entering into an agreement containing a restrictive covenant after...more

Non-Competes Must Be Supported By Consideration in Pennsylvania: No Exception Based On Employee’s Agreement To Be Legally Bound

The Pennsylvania Supreme Court has ruled that a non-compete entered after the onset of employment without additional consideration is not enforceable even if the employee expressly agreed “to be legally bound.” See Socko v...more

Pennsylvania Supreme Court Finally Kills Hope That Magic Words Can Substitute for Valuable Consideration in Exchange for...

To most practitioners, Pennsylvania law governing the consideration required for an employment agreement containing a restrictive covenant (e.g., a non-competition clause or non-solicitation clause) has been simple: (1) if...more

Washington Employers, Be Careful When Demanding Arbitration Agreements from Current Employees

Yesterday, in case called Mayne v. Monaco Enterprises, Inc., a Washington Appellate Court struck down an arbitration clause because the employee faced immediate termination if he did not sign. The employee in this case had...more

Canadian Bankruptcy Considerations in Factoring Transactions

Factoring transactions, in which a buyer purchases outright or acquires an interest in a seller’s accounts receivable, are becoming increasingly common. Initially, the buyer must determine whether the transaction is to be...more

Protecting Company Relationships and Information Upon an Employee Departure

Learn how your company can prepare to act quickly and strategically to protect important relationships, information and trade secrets at the time that a key employee leaves. This webinar will review the latest developments in...more

California Governor Vetoes Bill Prohibiting Mandatory Employment Arbitration Agreements

Employers can breathe a big sigh of relief for now: Governor Jerry Brown vetoed SB 465, which threatened to outlaw mandatory employment arbitration agreements in California. In his veto message, the Governor noted that there...more

NC Court of Appeals Finds $100 Adequate Consideration to Support Non-Compete

In North Carolina, an initial offer of employment serves as adequate legal consideration to support non-competition and non-solicitation restrictive covenants. However, once a person is already employed, the employer must pay...more

New Development In The Enforceability of Non-Compete Agreements

As many of our readers may recall, the Illinois Appellate Court in the First District dramatically changed (in our view) the law two years ago in its infamous Fifield decision, by holding that if employment (or continuing...more

PGR Order Offers Insight Into Successful and Unsuccessful Discovery Requests

Parties to inter partes review and post grant review proceedings have continued to struggle to find the right formula in successfully navigating the PTAB’s requirements for a motion for additional discovery. In American...more

Is An Offer Of At-Will Employment Adequate Consideration For A Non-Compete? Recent Court Rulings Split Three Ways

Three very recent decisions reflect the irreconcilable division of judicial authority regarding the adequacy of at-will employment as the sole consideration for an otherwise valid non-compete. Compare (a) Standard Register...more

Oregon Tightens Restrictions on Noncompetition Agreements

Oregon strictly regulates the use of noncompetition agreements by statute, generally limiting them to (a) exempt employees earning more than the median income for a family of four (approximately $74,000 currently), and (b)...more

Missouri Supreme Court “Calls an Audible,” Upholds Arbitration Agreement

In recent years, Missouri courts have seemed reluctant to enforce arbitration agreements entered into between employers and employees. But in a recent decision, the Missouri Supreme Court reversed that trend and compelled...more

Quirky Question #262, An update on Wisconsin non-competes

Question: We are a Wisconsin employer that recently lost a number of employees to a direct competitor in our region. As a result, we are now in the process of having all of our employees sign non-compete agreements...more

Wisconsin Joins Illinois in Addressing Whether Continued Employment Constitutes Lawful Consideration for Mid-Stream Non-Competes

The Wisconsin Supreme Court recently brought much needed clarity to Wisconsin employers — and helpful guidance for other jurisdictions — in ruling that continued at-will employment constitutes legal consideration to support a...more

Recapping Major Non-Compete News from Around the Nation

..New Mexico has passed a new law that limits physician non-compete agreements. Although the law places some limitations on restrictive covenants for doctors, it is not an outright ban of such restrictions (of the...more

Wisconsin Supreme Court Holds That Continued Employment Constitutes Adequate Consideration for Restrictive Covenants

The Wisconsin Supreme Court recently issued a decision holding that continued employment is adequate consideration for restrictive covenants. In Runzheimer International, Ltd. v. Friedlen, et al., No. 2013AP1392 (April 30,...more

Consideration for Covenants

The recent UK High Court decision in Re-use Collections Limited v Sendall & May Glass Recycling Ltd, highlights to employers that new restrictive covenants will not be enforceable against employees unless substantial...more

Wisconsin Supreme Court: Continued Employment Is Lawful Consideration for a Non-Compete

On April 30, 2015, the Wisconsin Supreme Court took a stand on a hot-button for employers by holding that continued at-will employment is legal consideration that will support a reasonably drafted restrictive covenant signed...more

Noncompete Law in France—Payment of a Noncompete is Required During Garden Leave

In France, a valid noncompete clause in an employment contract must provide for the payment of financial compensation to the departing employee, as long as the employee remains bound by and complies with the clause’s terms...more

New Arkansas Law Boldly Embraces Noncompetition Provisions

On April 2, 2015, Arkansas enacted a new law (the Act) that greatly expands the enforceability of noncompete agreements in the state. The Act makes striking changes to Arkansas non-compete law. ...more

Illinois Restrictive Covenants: The “Gray” Bright Line Regarding Sufficient Consideration

Illinois non-compete law continues to wend a circuitous path through the employment landscape, making it occasionally difficult for employers and employees alike to predict outcomes in these cases....more

Post Termination Restrictions: Always Consider Consideration

The recent case of Re-Use Collections Ltd v Sendall [2014] EWHC 3852 (QB) is a timely reminder to employers everywhere of the importance of providing meaningful consideration when attempting to tie-up existing employees with...more

71 Results
View per page
Page: of 3

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.