Employment Contract Non-Compete Agreements

News & Analysis as of

Connecticut Legislature Passes Bill Limiting Physician Non-Compete Agreements

The Connecticut legislature recently passed Public Act No. 16-95 (PA 16-95), which aims to increase competition among health care providers by, among other things, restricting physician non-compete agreements. Though passed...more

The Latest Massachusetts Non-Compete Bill Contains Some Surprises

Earlier this week, the Joint Committee on Labor and Workforce Development released proposed amendments to the Uniform Trade Secrets Act, which would include the creation of the Massachusetts Noncompetition Agreement Act. The...more

Non-Compete Legislation In Massachusetts: Could It Actually Happen?

On May 16, 2016, the Massachusetts General Court’s Joint Committee on Labor & Workforce Development reviewed a re-drafted bill concerning non-compete agreements in the Commonwealth and reported it out of the Committee...more

Non-compete Restrictions in Texas Severance Agreements

One of the most frequent Texas non-compete questions I am asked is whether an employee and employer can enter an enforceable non-compete agreement at the time of termination. From the employee's perspective, this seems...more

The Dearth of Restrictive Covenant Case Law in Georgia

It was five years ago this week (May 11, 2011, to be precise) that Georgia's new restrictive covenant statute went into effect. Prior to the effective date of the statute, Georgia was (surprisingly for many out-of-state...more

Utah's New Post-Employment Restrictions Act Effective Tomorrow

Utah's newly enacted Post-Employment Restrictions Act (Act) takes effect tomorrow and significantly limits the duration of newly entered noncompetition agreements. Employers should review their noncompetition agreements going...more

[Webinar] Noncompete Agreements: Choice of Law and Venues Best Practices - May 25th, 1:00p.m. EDT

Courts in different jurisdictions take very different approaches to whether and under what circumstances noncompete agreements will be enforced. In fact, the laws with respect to enforcing these agreements differ by...more

Health Care Group News: Connecticut Limits Physician Non-Competition Agreements: Just one piece of SB 351

On May 3, 2016, the Connecticut Senate sent SB 351 to Governor Malloy for signature. Among other things, the legislation limits the use of physician non-competition agreements. The Governor is expected to sign the bill into...more

The White House is Interested in Non-Compete Reform

President Obama is expected to sign the Defend Trade Secrets Act, which passed with overwhelming, bipartisan support in the House and Senate in recent weeks (and about which we will have a lot more to say in the coming days)....more

White House Issues A Call To Arms With Respect To Non-Competes

On May 5, 2016, the White House issued a report largely piggybacking on a recent U.S. Treasury Department study, on which we previously posted, with a primary focus on the purported misuse and negative impacts of non-compete...more

Utah Passes New Law Placing Restrictions on Noncompetition Agreements

On March 9th, 2016, the Utah Legislature passed a bill, which the governor signed, substantially limiting an employer's ability to use noncompetition covenants to prevent former employees from competing against them. The new...more

Medical Non-Competes in Rhode Island: No Clean Bill of Health

The Rhode Island Superior Court recently refused to enforce a non-compete agreement against a local physician because it was against the public interest. Medicine and Long Term Care Associates, LLC v. Khurshid, PC 2015-0458,...more

Eighth Circuit Decision Suggests Employers May Have An Alternative Option to Using Non-Compete Agreements

A recent Eighth Circuit Court of Appeals decision suggests another avenue for employers to secure damages from an employee who competes against them after employment ends – without the use and many limitations of a...more

You Can’t Put Lipstick On This Pig: Beauty Company’s Non-Compete Deemed Unenforceable

On March 25, 2016, a Massachusetts Superior Court judge struck down skin care salon Elizabeth Grady Face First, Inc.’s (“Elizabeth Grady” or the “Company”) attempt to make its non-compete agreement seem prettier than it...more

New Utah law limits use of noncompetition agreements

Many employers are confronted by the problem of former employees using company information or relationships they had access to or developed during their employment. Employers have sought protection by having employees agree...more

North Carolina’s Strict Blue Pencil Doctrine is Written in Ink: The Supreme Court Rules That Courts Cannot Revise Noncompete...

The North Carolina Supreme Court (the “Supreme Court”) recently reiterated that North Carolina courts may not revise overly broad restrictions in noncompetition agreements, overturning a Court of Appeals decision that had...more

Utah Enacts Post-Employment Restrictions Act

A growing number of states are tightening conditions on restrictive covenants.  The start of 2016 saw Oregon and Alabama enact higher barriers to the enforcement of non-compete agreements in those states. As of March 22,...more

Question #273: Crafting a Concrete Non-Compete

Question: Our company uses non-compete and non-solicit agreements that bar former employees from having contact with any client of our company after they leave. One former employee who recently left is now claiming the...more

What Utah Employers Need to Know About H.B. 251: Post-Employment Restrictions Act

On March 22, 2016, the Governor of Utah signed into law H.B. 251, the Post-Employment Restrictions Act. This was one of the most controversial bills considered this last session, and it underwent many changes through the...more

Illinois Restrictive Covenants: Special Rules Apply To Non-Compete and Non-Solicit Agreements

All employers doing business in Illinois must be aware of a special rule regarding the enforceability of covenants not to compete, which may apply, depending on where their business is located. In Fifield v. Premier Dealer...more

Take Care in Drafting: Meschino v. Frazier Industrial Co. is a Cautionary Tale for Employers

In Meschino v. Frazier Industrial Co., Civil No. 15-10327-RGS, 2015 WL 7295463 (D. Mass. Nov. 18, 2015), Judge Stearns held that an employment agreement superseded an earlier employment agreement and a separate earlier...more

Better Think Twice About Enforcing A Non-Compete

Over the last couple of years, there has been an increase in employees striking back against employers trying to enforce non-compete agreements.  In those cases, the employee argues that his former employer has interfered...more

South Africa’s Labour Court Rules Garden Leave and Noncompetition Clauses Enforceable

On February 9, 2016, in a victory for South African employers, South Africa’s Labour Court in Johannesburg addressed for the first time the applicability of garden leave in assessing the reasonableness of a post-termination...more

Bill to Regulate Non-Compete Agreements Continues to Move through Utah Legislature

We recently posted about a bill in the Utah State legislature, HB 251, which would have essentially prohibited non-competition agreements in Utah. While awaiting debate and final vote in the Utah House, the bill was amended...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

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