As previously discussed, post-employment noncompetes require thoughtful drafting and implementation in order to be enforceable in North Carolina. Courts and judges don’t like them, but they can be an incredibly valuable tool...more
Benesch previously informed its clients about the significant changes made to Illinois restrictive covenants law by the Illinois legislature in the waning moments of its most recent legislative session. These changes include,...more
Citing concerns about worker mobility and advocating for increased market competition, President Biden signed Executive Order No. 14036: Promoting Competition in the American Economy, on July 9, 2021. The Order, published in...more
Non-compete and non-solicitation agreements (“restrictive covenants”) can be a helpful tool for protecting a business, as they allow employers to restrict their employees’ ability to seek employment with competitors and/or...more
Illinois Gov. JB Pritzker is expected to soon sign into law a bill that will make significant changes to the Illinois Freedom to Work Act and affect the enforceability of employee non-competition provisions. The General...more
The next state in our series exploring non-compete agreements is Texas’ neighbor to the east, Louisiana. As I like to say, when you travel east and cross the Sabine River from Texas to Louisiana all the words change but the...more
A key employee just left. He was intimately involved in a major transaction. He knows all the secrets of a $40 million deal. To make matters worse, he is going to a competitor. You have a non-compete – what can you do? Or,...more
Nutter Partner David Rubin recently contributed an article to Massachusetts Lawyers Weekly that analyzed the Massachusetts Noncompetition Agreement Act. In the article, “Thorny Questions, Issues Emerging as Noncompete Act...more
On August 10, 2018, the Governor of Massachusetts signed “An Act relative to the judicial enforcement of noncompetition agreements,” otherwise known as the Massachusetts Noncompetition Agreement Act (“Act”), § 24L of Chapter...more
On August 10, 2018, Massachusetts Governor Charlie Baker signed a bill reforming Massachusetts law regarding non-competition agreements. This new law, which takes effect on October 1, 2018, will require employers to modify...more
Over the years, I have written blog posts related to a plethora of nuances concerning noncompetition agreements. While the signing into law last Friday of new legislation on noncompetes does not eviscerate them (despite...more
A recent decision in the North Carolina Business Court could have significant implications on non-competition covenants in employment agreements that contain a very common automatic renewal term. The decision, if followed by...more
Nevada’s Assembly Bill 276, which became effective on June 3, 2017 (the “NV Law”), articulates new rules and requirements for employee restrictive covenants, some of which fundamentally alter the State’s prior practices. The...more
As we previously reported, the Massachusetts House and Senate passed contrasting versions of non-compete reform bills in 2016 but were unable to come to an agreement by the end of the legislative session. Efforts began anew...more
On October 27, 2016, the Fort Worth Court of Appeals affirmed a lower court’s order denying an application for temporary injunction seeking to enjoin Thomas Musgrave, the former president of Henry F. Coffeen III Management,...more
A business dispute in Michigan may provide insight into the consideration required to support a noncompete contract restricting future employment. Innovation Ventures, LLC v. Liquid Manufacturing, LLC, No. 150591, Michigan...more
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
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 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
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
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
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
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
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
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