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Enforcing Personal Guaranties

You might wonder whether lenders can enforce a guaranty of a loan from an individual or entity that has no formal connection with the borrower, i.e. someone who is not an owner or affiliated company. Generally, the answer is...more

Where’s My %$^&# Dollar?

The issue of consideration in an assignment is always in the background, but only occasionally comes up. In Memorylink Corp. v. Motorola Solutions, Inc., 773 F.3d 1266, 113 USPQ2d 1088 (Fed. Cir. 2014), the Federal Circuit...more

One Step Forward, Two Steps Back: Massachusetts Senate Reverses Course On Non-Compete Reform

As we last reported, just a few weeks ago, the Massachusetts House of Representatives unanimously approved a non-compete bill that revised the original draft bill and addressed some of the business community’s concerns (such...more

Contracting out of waiver? Court of Appeal provides guidance on ‘no variation’ and ‘anti-oral’ variation clauses

This Alert looks at the effectiveness of what are commonly termed “no variation” or “anti-oral variation” clauses (i.e. clauses which purport to prevent the contract in question from being amended absent compliance with...more

Restrictions on Employees' Post-Employment Work in North Carolina: The Balancing of Interests

The use of "covenants not to compete," or "non-compete agreements," which limit former employees from working for a competitor are gaining in popularity and are used in a wide variety of industries and by service providers. ...more

The importance of signing the employment contract before starting work

In a recent decision, Holland v. Hostopia.com Inc., the Ontario Court of Appeal concluded that a termination provision in an employment agreement was unenforceable because the employment agreement was signed after the...more

Massachusetts Noncompete Bill Advances, but Passage Remains Uncertain

In March, we reported that Massachusetts House Speaker Robert A. DeLeo had announced his support for legislative restrictions on employee noncompetition agreements, signaling a potential turning point in the long-running...more

South Carolina Court of Appeals Says 150-Mile Geographic Restriction in Non-Compete is Unreasonable

South Carolina courts evaluate the enforceability of non-compete provisions executed in the employment context and in connection with the sale of the business under the same reasonableness test. To be enforceable in South...more

Restrictive Covenants: Do Yours Meet a Changing Landscape?

Restrictive covenants are an important tool for businesses concerned about the protection of their confidential business information and the costs of employee training and turnover. When properly crafted and utilized,...more

Labor and Employment Group News: U.S. Treasury Issues Report on the Economic Effects of Non-compete Contracts

An office of Economic Policy Report published in March 2016, entitled "Non-Compete Contracts: Economic Effects and Policy Implications," estimates that 18% of all workers, or nearly 30 million people, are covered by...more

Getting Full Value out of Noncompete Agreements

Increasingly, companies are having employees sign noncompete and nonsolicitation agreements in order to protect the company, and its customer base, should the employee leave the company. These agreements are clearly...more

How does Utah’s New Noncompete Law Affect You?

Utah employers should update their form noncompete agreements to ensure they comply with the state’s new Post-Employment Restrictions Act. Employers of all sizes are subject to the Act, which was adopted by the Utah...more

Employee terminated despite manual’s assurances against retaliation

It is often said that “a promise is a promise,” but what does that adage mean? A promise is a statement or declaration that a person will or will not do something. In most cases, a promise is not enforceable under the law...more

“Employer-Friendly” Utah Legislature Considers Regulating Non-Compete Agreements

Many employers in Utah use non-competition agreements to protect their confidential information, customer relationships and investment in employee training and development. In a somewhat surprising move, the usually...more

Five things you should know before creating a contest

As most readers of this blog know, a contest is quite different than a sweepstakes. Sweepstakes are games of chance. The winners are selected at random and don’t have to have any particular knowledge or skill – just good...more

Massachusetts Federal Court Reaffirms That Continued Employment Constitutes Sufficient Consideration for Non-Compete

In American Well Corporation v. Obourn, Civil No. 15-12265-LTS, 2015 WL 7737328 (D. Mass. Dec. 1, 2015), Judge Sorokin of the United States District Court for the District of Massachusetts upheld a non-compete entered into...more

Pennsylvania Supreme Court Holds That Employers Must Provide Additional Consideration to Bind Current Employees to a Non-Compete...

Last week, the Pennsylvania Supreme Court upheld a May 2014 ruling by a Pennsylvania Superior Court that employers must provide new and valuable consideration to bind current employees to a non-compete agreement,...more

Pennsylvania Supreme Court Rejects Continued Employment as Sufficient Consideration for Non-Compete

The Pennsylvania Supreme Court recently held in Socko v. Mid-Atlantic Systems of CPA, Inc. that a non-compete is enforceable only if a current employee receives new consideration beyond continued employment. The Court held...more

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

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

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