News & Analysis as of

Employment Contract Restraint of Trade

Littler

Is a Bonus Clawback Provision a Restraint of Trade in the UK?

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In a reassuring decision for employers, the UK High Court has confirmed that an employer’s use of a contractual provision to claw back an employee’s bonus was lawful. The ruling in Steel v Spencer Road LLP provides helpful...more

Dechert LLP

Clawback Provisions and Restraint of Trade

Dechert LLP on

In a welcome decision for employers, in Steel v Spencer Road LLP the High Court has upheld as enforceable a clause requiring an employee to repay a significant bonus following his resignation. A clause in Mr Steel’s...more

Holland & Knight LLP

California's New Nationwide Focus on Noncompetition Agreements

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For decades, California has taken arguably the most pro-employee-mobility position on noncompetition and non-solicitation agreements in the country – generally, post-employment noncompetition and non-solicitation agreements...more

CDF Labor Law LLP

California Assists New York Employees in No-Poach Case

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A private class-action complaint claimed that the department store, Saks, and several luxury brands (including Louis Vuitton, Loro Piana, Prada, Brunello and Fendi) violated Federal Antitrust laws when they agreed that each...more

Frantz Ward LLP

Unlocking the Handcuffs: Department of Justice Obtains Guilty Plea in “No-Poach” Hiring Agreement Case

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The Department of Justice has claimed its first victory in attacking “no-poach” agreements after a Nevada staffing company pled guilty and was sentenced to pay $134,000.  The case arose out of a concerted effort by the...more

Jenner & Block

Latest Decisions in Criminal No-Poach and Civil Non-Compete Cases Indicate Continuing Scrutiny of Restrictive Covenants

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Parties in Criminal No-Poach Case Reach Pre-Trial Resolution - Recently, the parties in United States v. Hee notified District Court Judge Boulware of the District of Nevada that they reached a preliminary plea deal. The...more

BCLP

UK HR Two Minute Monthly: post-termination restrictions; discrimination and victimisation claims; right to respect for private...

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Our January update considers recent developments in employment law, including cases on post-termination restrictions, interim relief for discrimination and victimisation claims, and the right to respect private life. We also...more

Seyfarth Shaw LLP

Will we win? The odds of success in restraint of trade cases

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When an ex-employee goes to a competitor or starts poaching clients or staff, employers often look to a restraint of trade clause to protect key business assets such as client relationships or company confidential...more

Seyfarth Shaw LLP

Cyber Restraints Of Trade In The New Era Of Digital Markets

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An enforceable restraint of trade can be a key business asset, giving an employer time to recover when a senior employee has left the business for a competitor. Like a good insurance policy, it’s a big relief to have it when...more

Adler Pollock & Sheehan P.C.

Noncompetes with Massachusetts Employees: Subsidizing a Former Employee’s “Garden Leave”

Effective October 1, 2018, employers in Massachusetts, Rhode Island, and other states seeking to hold Massachusetts employees to noncompete agreements must meet the requirements of a new law passed by the Massachusetts...more

Tucker Arensberg, P.C.

Pennsylvania Superior Court Finds Contractual No-Hire Agreements Between Businesses Void Against Public Policy

The hiring of your key employees by another business that you have a relationship with — either individually or en masse — can be devastating. It is therefore not uncommon for businesses to insert provisions in contracts...more

Littler

Second California Court Adopts Position that Employee Non-Solicitation Clauses are Invalid Restraints on Trade

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On January 11, 2019, a California federal district court issued a decision bolstering the argument that employee non-solicitation clauses are unenforceable under California law....more

Seyfarth Shaw LLP

The Post-Employment Restraint As A Business Asset

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This is the case now more than ever given that the Supreme Court of Victoria’s decision in Just Group Limited v Peck [2016] VSC 614 (later affirmed on appeal) has arguably raised the bar for correctly drafting an effective...more

Allen Matkins

Nevada Supreme Court Addresses Nationwide Non-Compete

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Given California's hostility to non-compete agreements, it is easy to lose sight of the fact that other states don't have the same attitude. In neighboring Nevada, the courts will look to whether the restraint on competition...more

Shumaker, Loop & Kendrick, LLP

Employee ‘No Poaching’ Agreements Meet the Antitrust Laws: Protection of Employees in the New Economy

For centuries employers have maintained a strong interest in trying to protect their most valuable asset, their key employees, from solicitation by and loss to other employers, especially competitors. As a result, “no...more

Seyfarth Shaw LLP

Prescribing the “minimum effective dose”

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Drafting and enforcing post-employment restraints has a lot in common with good medicine. It is necessary to prescribe only the “minimum effective dose” – the amount necessary to produce the desired outcome with minimum...more

Foley & Lardner LLP

Wisconsin Court Strikes Clause Restricting Solicitation of Employees

Foley & Lardner LLP on

An engineer’s employment contract provision imposing a post-termination restriction against soliciting former co-workers to quit or to accept employment with a competitor, supplier, or customer is an unenforceable restraint...more

Seyfarth Shaw LLP

You get to write the script for this story…

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Effective restraints of trade protect businesses which rely heavily on human capital from damage that sometimes can’t be undone. These restraints – usually sitting in an employment contract – can be a key business asset....more

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

Liquidated Damages: A Viable Alternative to Noncompetition Agreements in Louisiana?

The Louisiana Third Circuit Court of Appeal recently issued an opinion that might pave the way for employers to use liquidated damages as a means of discouraging competition by former employees in certain circumstances. ...more

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