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Employment Contract Enforceability

Benesch

Texas Federal Court Rejects FTC’s Non-Compete Ban

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As every employer in the U.S. is likely aware, the Federal Trade Commission’s (“FTC”) near-universal ban on non-competes nationwide, which the FTC voted to implement via regulatory rulemaking on April 23 of this year, has...more

Tucker Arensberg, P.C.

An Update on the Uncertain Future of the FTC’s Non-Compete Rule, Plus Pennsylvania Enacts New Non-Compete Law for Healthcare...

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Since it was first published in April, the fate of the Federal Trade Commission’s (FTC) final non-compete rule has been, to put it mildly, less than certain. Now, about a month before the rule is scheduled to take effect, the...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

FTC Noncompete Ban Rule Survives Challenge in Pennsylvania Federal Court, but Still Contested in Florida and Texas

On July 23, 2024, a judge in the U.S. District Court for the Eastern District of Pennsylvania denied a motion for preliminary injunction seeking to stay the effective date of the Federal Trade Commission’s (FTC) final...more

BakerHostetler

The Second Decision Is In: PA Court Finds FTC Noncompete Rule Enforceable, Creating Conflicting Decisions and Uncertainty

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On July 23, 2024, the United States District Court for the Eastern District of Pennsylvania issued a decision in ATS Tree Services, LLC v. FTC, which held that the Federal Trade Commission (FTC) had the authority to issue its...more

McGlinchey Stafford

Am I Entitled to a Bonus? - McGlinchey Commercial Law Bulletin - February 16, 2024

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Ohio- Enforceability of Arbitration Agreement- Bryan Costin v. Midwest Vision Partners LLC., 8th Dist. Cuyahoga No. 112651, 2024-Ohio-463. The Eighth District Court of Appeals recently affirmed the trial court’s ruling...more

Genova Burns LLC

Ending Forced Arbitration of Sexual Harassment, Not Discrimination

Genova Burns LLC on

Arbitration agreements are a powerful tool used by many employers to compel the utilization of arbitration as a means of alternative dispute resolution. Arbitration allows the parties of a claim to resolve the dispute...more

Seyfarth Shaw LLP

50 State Desktop Reference - What Businesses Need to Know about Non-Competes and Trade Secrets Law

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Introduction - As we enter a new era of business landscape dynamics, Seyfarth Shaw is pleased to present the latest edition of our annual cornerstone publication. This comprehensive 50-State Non-Compete Desktop Reference,...more

Saiber LLC

The Changing Landscape of Non-Competes and Restrictive Covenants

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A common example of a non-compete restriction is a new CPA who signs such an agreement as part of his or her onboarding paperwork. Years later, the CPA considers moving to another firm, or opening their own firm, but that...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Georgia Appellate Court Says Employee Nonsolicitation Covenant Not Enforceable Without Express Geographic Limitation

In a recent decision, a Georgia appellate panel held that an employee nonsolicitation covenant that limits what parties can do following the end of a business relationship must have an explicit geographic limitation to be...more

Genova Burns LLC

To Click or Not to Click: NJ Appellate Division Reaffirms Enforceability of Electronic Arbitration Agreements

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On March 7, 2023, in Dakota Powell vs. Prime Comms Retail LLC, the New Jersey Appellate Division ruled that a former employee must arbitrate her claims of race discrimination, rather than pursue them in court due to her...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

California Bill Would Impose Penalties on Employers and Attorneys for Attempting to Enforce Restrictive Covenants

In February 2023, new legislation was proposed in the California State Assembly that, if adopted and signed into law by Governor Gavin Newsom, could have a significant impact on employers and their attorneys providing advice...more

Foley & Lardner LLP

What Should Employers Consider If Conducting Layoffs?

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It is a badly-kept secret that the U.S. economy is facing challenges – inflation, increased interest rates, increased labor costs, decreased business growth, etc. One option for businesses during an economic downturn is...more

Stokes Wagner

A New Era for Noncompetes

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Historically, employers have used noncompete agreements to prevent competition or dissemination of confidential information when an employee leaves a company. However, the last few years has seen the erosion of their...more

Manatt, Phelps & Phillips, LLP

Read Your Contract: Prior Invention Assigned to Employer When Incorporated into Employer’s Software

In Apprio, Inc. v. Zaccari, the U.S. District Court for the District of Columbia held an agreement enforceable where if, in the course of employment, the employee incorporated a prior invention into the employer’s product,...more

Royer Cooper Cohen Braunfeld LLC

The Future of Non-Compete Agreements

On July 9, 2021, President Biden issued an “Executive Order on Promoting Competition in the American Economy.” Notably, the order encourages the FTC to promulgate rules to “curtail the unfair use of non-compete clauses and...more

Sheppard Mullin Richter & Hampton LLP

Illinois Governor Signs Non-Compete Legislation

On August 13, 2021, Governor Pritzker signed into law a bill amending the Illinois Freedom to Work Act governing restrictive covenants and non-competition agreements. On May 30, 2021, the Illinois General Assembly passed a...more

BCLP

HK Court of Appeal confirmed modern test on penalties in the employment context

BCLP on

In the recent important decision of Law Ting Pong Secondary School v Chen Wai Wah [2021] CA 873, the Hong Kong Court of Appeal adopted the modern test for penalty clauses as laid down in the UK Supreme Court decision in...more

Amundsen Davis LLC

Illinois Legislature Passes Comprehensive Non-Compete Legislation

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As reported in prior blogs, the Illinois legislature for several months has been considering amendments to the Illinois Freedom to Work Act that apply to non-compete and non-solicitation restrictions. SmithAmundsen attorneys...more

Sheppard Mullin Richter & Hampton LLP

What Employers Need to Know About New Non-Compete Legislation in Illinois

Following a nationwide trend, Illinois has proposed significant legislation affecting employee restrictive covenants, such as non-compete agreements. While the proposed law does not dramatically change most aspects of the...more

Holland & Knight LLP

Illinois Bill Modifying Non-Competition Agreements Nears Enactment

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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

Ogletree, Deakins, Nash, Smoak & Stewart,...

Massachusetts High Court Clarifies Standards for Judicial Review of Anti-Raiding Provisions in Restrictive Covenants

The Massachusetts Supreme Judicial Court (SJC), the Commonwealth’s highest court, recently clarified the standards applicable to analyzing nonsolicitation and anti-raid restrictive covenants following the sale of a business -...more

Dentons

HR Quick Takes: Non-Competes

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Q: Are non-competes enforceable in Iowa? A: Yes, but with a whole lot of caveats. Enforceability depends a lot on how they are structured (too indefinite, poor definitions, the employee will starve because it prevents all...more

Littler

Puerto Rico Supreme Court Holds Arbitration Clauses in Employment Contracts—Including Those Governing Unjust Dismissal Claims—are...

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The Puerto Rico Supreme Court (PRSC) recently issued an opinion in José Méndez et al v. Carso Construction, 2019 TSPR 19 (May 22, 2019), validating an arbitration clause that covers a claim under the Puerto Rico Unjust...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Louisiana Court Finds Nonsolicitation/Noncompetition Agreement Is Enforceable

When Jay Baker, the vice president of Causin, L.L.C., quit to create a competing business, Causin sued to enforce Baker’s nonsolicitation/noncompetition agreement. Baker defended the claim in part by arguing the agreement’s...more

Foley & Lardner LLP

Non-competes for Existing Employees May Require Additional Consideration

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It is not uncommon for employers to ask existing employees to sign non-compete agreements. For example, new management may want to tighten up a company’s protections. Or, changes in the business may make the need for employee...more

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