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Employment Contract Restrictive Covenants Former Employee

Mayer Brown

Employer's Claim to Enforce Non-Compete and Non-Solicitation Obligations Dismissed by Hong Kong Court

Mayer Brown on

In the recent case of Moxie Communications Limited v. Lai Cheuk Lok [2024] HKDC 1323, an employer (the "Company") sought to enforce two post-termination restrictive covenants ("PTRs") against a former employee (the...more

Mayer Brown

Germany: Restrictive Covenants

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AT A GLANCE - Employees in Germany are subject to statutory non-competition and non-solicitation obligations during an employment relationship. Similar statutory restrictions apply to directors and board members as long as...more

Mayer Brown

China: Restrictive Covenants

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AT A GLANCE - The only post-employment restrictive covenant explicitly stipulated under the People’s Republic of China’s (PRC) labour laws is the non-compete restrictive covenant. The employer and the employee may agree on...more

Ius Laboris

Employer’s Missteps Forfeited Non-Compete Clause    

Ius Laboris on

In a recent case in Denmark, an employer lost its right to obtain an injunction against a former employee performing consultancy work for a competitor....more

BCLP

HK High Court Refuses to Enforce a 12-month Worldwide Non-compete Covenant

BCLP on

In Manulife Financial Asia Limited and Kenneth Joseph Rappold & Others [2024] HKCFI 989 (date of decision: 5 April 2024), the Hong Kong High Court refused a company’s application to enforce a 12-month non-compete clause...more

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

FTC’s Ban on Non-Compete Agreements: Definitions, Prohibitions, Requirements, and Employer Considerations

On May 7, 2024, the Federal Trade Commission (FTC) published a final rule that effectively bans all non-compete agreements between employers and “workers” as “unfair method[s] of competition” and requires employers to refrain...more

Fish & Richardson

What the FTC’s Ban on Noncompete Agreements Means for Trade Secrets

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On April 23, the Federal Trade Commission (FTC) issued a final rule that would ban the use of noncompete agreements in most employment contracts nationwide. Hailed by the Commission as a measure to promote competition,...more

Holland & Knight LLP

Don't Fret (Yet): Trade Secrets, NDAs and Non-Solicits After the FTC Non-Compete Rule

Holland & Knight LLP on

With the issuance of the Federal Trade Commission's (FTC or Commission) much-anticipated final rule on its "non-compete ban" (see Holland & Knight's previous alert, "New FTC Rule Bans Non-Compete Agreements in All Employment...more

Fenwick & West LLP

FTC Bans Employment Noncompetes

Fenwick & West LLP on

On April 23, 2024, the Federal Trade Commission (FTC) voted 3-2 to adopt a final rule broadly banning post-employment noncompete agreements. This federal ban prohibits for-profit employers from entering into noncompete...more

DRI

Non-Compete Clauses and Professional Liability

DRI on

Non-compete provisions have long been viewed by employers as reasonable and appropriate velvet handcuffs on departing employees and as an unfair burden on competition by the departing employees. The purpose of non-compete...more

Baker Donelson

The End of Non-Competition Agreements? Not so Fast!

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The Federal Trade Commission (FTC) issued a final rule in a partisan 3-2 vote on April 23, 2024 prohibiting employers from binding most American workers to post-employment non-competition agreements (the "Final Rule")....more

ArentFox Schiff

2023 Trade Secrets End of Year Report

ArentFox Schiff on

2023 was a banner year for trade secrets, non-competes, and other restrictive covenants. Employee non-competes continued to garner attention at the federal agency level, drawing commentary and action from the Federal Trade...more

Quarles & Brady LLP

Employers Have New Obligations Under Statute Regulating Noncompete Agreements

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As discussed in a prior alert, newly-enacted California laws governing noncompete agreements require employer action by February 14, 2024. This alert explains the purpose of the new laws, what the notification requirement...more

Littler

Dutch Employer Paid Dearly for an Offer to Buy Out a Non-Compete Clause

Littler on

In a recent matter before the Arnhem-Leeuwarden Appellate Court, an employer in the Netherlands attempted to hold a former employee to his non-compete clause. After the employee had terminated his employment contract, the...more

Burns & Levinson LLP

Employers Must Give Notice to Current and Certain Former California Employees of Void Noncompete by February 14, 2024, or Risk...

Burns & Levinson LLP on

Many companies have ceased using noncompete clauses for employees working in California. At best the clauses have become unenforceable, at worst, a liability for the company....more

Littler

The Year in Unfair Competition and Trade Secrets: 2023 Developments and What Is on the Horizon for 2024

Littler on

2023 was an active year in the world of unfair competition and trade secrets law, with employers’ use of restrictive covenant agreements coming under assault at the Federal Trade Commission and National Labor Relations Board,...more

Parker Poe Adams & Bernstein LLP

North Carolina Court of Appeals Limits Grounds for Review of Noncompete Injunction Denial

When litigating employment non-competition covenants, issuance by the court of a preliminary injunction may be more important than the ultimate outcome of the litigation. Depending on the circumstances, the injunction can...more

Seyfarth Shaw LLP

Golden State Crackdown on Non-Competes: California Enacts Second Non-Compete Law To Curtail Use of Non-Competes With Employees

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California has done it again! We reported last month concerning California’s new non-compete law that furthers the state’s protections for employee mobility and seeks to void out of state employee non-compete agreements....more

Troutman Pepper

Seventh Circuit Revives McDonald's Employee No-Poach Litigation

Troutman Pepper on

In June of 2022, McDonald’s obtained a judgment on the pleadings, ending antitrust litigation challenging the legality of the no-hire restraints it previously included in its franchise agreements. More than a year later, the...more

Seyfarth Shaw LLP

New California Non-Compete Law Furthers the State’s Employee Mobility Protections and Seeks to Void Out of State Employee...

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On September 1, 2023, California Governor Gavin Newsom signed legislation that furthers the state’s protections for employee mobility and seeks to void out of state employee non-compete agreements. Specifically, the new law...more

CDF Labor Law LLP

New Golden State Law To Create Gold Rush Litigation Testing Non-Compete Agreements

CDF Labor Law LLP on

For over two decades, California law concluded non-compete agreements are not enforceable in the context of employment, Edwards v. Anderson, 44 Cal.4th 937 (2008) and even created a public policy claim against employers...more

Littler

California Reaches Across State Lines to Invalidate Employee Non-Compete Agreements

Littler on

We are in the final stretch of the California legislature’s first year of a two-year session. One bill that sped through the legislative process—without any registered opposition—is Senate Bill 699, which extends the state’s...more

Fisher Phillips

Former Employees Who Couldn’t Wait to Leave Their Florida Employer Before Illegally Competing Ordered to Pay Heavy Price

Fisher Phillips on

A Florida Circuit Court judge sternly rebuked two former employees of a private South Florida provider of Autism treatment services who began competing illegally with a new employer – while still employed with their old...more

CDF Labor Law LLP

California Assists New York Employees in No-Poach Case

CDF Labor Law LLP on

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

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

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