News & Analysis as of

Employment Contract Non-Compete Agreements

Discover (or rediscover) U.S. employment law: Your questions, our answers

by Dechert LLP on

Companies doing business in the U.S. invariably encounter a legal system and employee relations laws that differ in many significant respects from those in other countries. The sources of U.S. law come from the U.S. federal...more

Restrictive Covenants Can Swing Both Ways: A 3-Step Plan To Avoiding Legal Risks When Onboarding New Employees

by Fisher Phillips on

Employers have been using restrictive covenant agreements – contracts that contain non-compete, customer non-solicitation, employee non-solicitation, or non-disclosure of confidential information – with increasing frequency...more

For Your Consideration: Recent State-to-State Developments on Sufficient Consideration for Employee Non-Compete Agreements

The various laws, statutes, and policies governing non-compete agreements are nuanced, inconsistent, and sometimes downright contradictory from state-to-state. The issue of consideration is no different. Like other...more

If You Checked The Box, You’re Bound By The Contract

A recent decision by the Third Circuit Court of Appeals highlights the well-established legal maxim that “when a party enters into a signed, written contract, that party is presumed to understand and assent to its terms.”...more

China: Non-Competes and Employee Post-Departure Reporting Obligations

by Dentons on

"Non-compete" refers to an agreement concluded between an employer and an employee at the time of hire, which provides that for a certain period after the termination or rescission of the employment contract, the employee...more

China: Application of Non-Competes To Protect Business Secrets

by Dentons on

An enterprise may have no patents or trademarks, but definitely have business secrets. Business secrets—the enterprise’s core information assets—are important intangible assets that go to the core competence of the...more

What Does it Mean to “Modify” an Unenforceable Non-Competition Covenant Under Georgia’s Restrictive Covenants Act?

by Jackson Lewis P.C. on

Although Georgia’s Restrictive Covenants Act has been on the books since the spring of 2011, no judge has decided the exact scope of Georgia courts’ blue-penciling abilities – until now....more

Employees Bound By Non-Compete By Clicking On Box To Accept Stock Grants

by Saul Ewing LLP on

Employees at payroll processing giant ADP were held to the terms of a non-compete contained in online stock award documents when they clicked the “I have read and agreed” button in order to receive stock grants. On February...more

New York Appellate Court Declines to Enforce Noncompetes Against Employees Terminated Without Cause

by BakerHostetler on

A recent decision by the New York Supreme Court, Appellate Division for the First Department, Buchanan Capital Markets, LLC v. DeLucca, 144 A.D.3d 508 (1st Dep’t. 2016), suggests that noncompetition restrictions against...more

Click Here — 3rd Circuit Enforces Restrictive Covenants Tied to Electronic Acceptance of Stock Award

On February 7, 2017, the Third Circuit affirmed a partial preliminary injunction order barring two former ADP employees from soliciting customers for their new employer for one year. This decision is notable as it affirmed...more

The Future of Noncompetition Agreements in Massachusetts and Beyond

by Wilson Elser on

The landscape of employee noncompetition (noncompete) agreements is in flux: most states allow such agreements and many states have enacted legislation that governs them. In Massachusetts, the legislature has considered...more

Here We Go Again: Massachusetts Non-Compete Legislation Back in Play

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

Non-Compete News – Georgia Court Interprets Georgia's Blue Penciling Statute

by FordHarrison on

It’s time to bring back FordHarrison’s Non-Compete News! And what better way to kick off 2017 than with Lifebrite Labs, LLC v. Cooksey (N.D. Ga. December 2016), Georgia’s first-ever published decision interpreting how a...more

Game-Changer on Enforcement of New York Non-Compete Agreements

In a recent decision in Buchanan Capital Markets LLC v. DeLucca, an appellate court in Manhattan placed the enforceability of non-compete agreements in jeopardy for New York employers. Non-competition agreements generally are...more

How Employment Agreements Can Protect An Employer's Intellectual Property And Defend Against Claims of Misappropriation

by McNair Law Firm, P.A. on

At approximately 4.6%, the current national unemployment rate is lower than it has been since before the 2008 recession. Generally speaking, this means that companies are hiring new employees. While hiring new employees is...more

Texas Appellate Court Holds Condition Subsequent in Noncompete Agreement Excused Former Employee’s Competitive Activities

by Seyfarth Shaw LLP on

A Texas Court of Appeals affirmed a summary judgment last month in favor of an ex-employee declaring that a noncompete clause in an asset purchase agreement and separate noncompete agreement did not bar him from competing...more

Gifts that Don’t Quite Fit in Your Stocking: New Employment Laws Taking Effect in 2017

by Franczek Radelet P.C. on

A number of new state or local laws are set to take effect in Illinois in 2017 which will require employers to update their employee handbooks, employment agreements, and other policies and procedures. We address the key...more

An Argument for the Use of Stock Options with Forfeiture Clauses for Breach of Duty of Loyalty

Introduction Jimmy John’s In 2014, Emily Brunner (“Brunner”) and Caitlin Turowski (“Turowski”) filed a complaint in Illinois against the sandwich company, Jimmy John’s, and its franchise affiliates. The complaint was amended...more

Jimmy John's Settlement Cautions Employers Over Widespread Non-Compete Use

The Jimmy John’s sandwich chain recently settled state law claims in Illinois relating to its former requirement that hourly restaurant employees sign non-competition agreements that prohibit them from working for a competing...more

Noncompetition Agreements—An Update

by Zelle LLP on

Nearly two years ago, we wrote about noncompetition agreements in the wake of news that sandwich maker Jimmy John’s required low-level employees to agree to highly restrictive noncompetition clauses. Last week, Jimmy John’s...more

Is Your Missouri Non-Compete Enforceable?

With employee mobility and desire for flexible work arrangements continually increasing, some employers are turning to non-compete agreements to limit the disruption to their workforces. But as some employers have been using...more

New Rules for Nevada Noncompetes

by Dickinson Wright on

Nevada Companies Must Review Their Noncompete Agreements - The Nevada Supreme Court recently has injected substantial uncertainty into any Nevada contract that contains a noncompete agreement, and companies need to...more

Did the White House’s “Call to Action” Get“Trumped”?

by Fisher Phillips on

The White House, under the Obama Administration, recently issued a “Call to Action” to state legislators across the country for non-compete reform. The Call to Action was a culmination of a months-long investigation by the...more

Employers Should Keep An Eye On the Non-Compete Reform Movement

by Akerman LLP - HR Defense on

Employers who require all employees to sign a form non-competition agreement regardless of the state in which the employee is located or the type of work performed by the employee should think twice before doing so. Recent...more

Texas Court of Appeals Finds Noncompete Agreement Inapplicable to Former President’s Post-Termination Activities Due to the...

by Seyfarth Shaw LLP on

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

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