News & Analysis as of

Non-Compete Agreements

Non-Compete Agreements are contracts, typically formed in employment or business purchase contexts, where one party agrees to refrain from engaging in a particular line of work or pursuing business within a... more +
Non-Compete Agreements are contracts, typically formed in employment or business purchase contexts, where one party agrees to refrain from engaging in a particular line of work or pursuing business within a certain industry or locale. The purpose of these agreements is to protect employers or business purchasers from competition stemming from former employees or former owners of a business. less -

How Employers Can Avoid California Labor Code Section 925

by Nilan Johnson Lewis PA on

Many non-California employers view the enactment of California Labor Code Section 925 as destroying any possibility of avoiding the state’s restrictive covenants laws for California-based employees. But there is hope! With...more

Review Of Previously Opened Email May Violate SCA

by Jackson Lewis P.C. on

In the midst of a heated litigation commenced by an employer against its former employee for alleged violations of a non-compete agreement, an employee returned the cell phone she used during her employment. Prior to...more

Recent Developments Regarding Noncompete Agreements

by Payne & Fears on

There is no question that noncompete agreements in California employment contracts are generally unenforceable. Many other states, however, may enforce such agreements if they are “reasonable” in duration and geographic...more

The One Area of Connecticut Law Employers Love (For Now)

by Shipman & Goodwin LLP on

Over the weekend, The New York Times ran a surprising (at least to me) article about how Idaho has implemented a legal framework that gives employers a great deal of flexibility in an area getting a good deal more publicity...more

Non-Compete News – Third Circuit Says Tortious Interference with a Non-Compete Requires Actual Knowledge of the Agreement at Issue

by FordHarrison on

An employer hiring an individual known to be subject to a non-compete contract can expect to be accused of tortiously interfering with that contract. On the other hand, the hiring employer should be innocent of wrongdoing if...more

Courts Continue to Enforce Foreign Non-Competes in California While the Window for Such Agreements Slowly Closes

Contrary to common perception, California employees who signed restrictive covenants prior to January 1, 2017 are not completely immune to enforcement of all restrictions on competition. For the second time in several years,...more

The Third Circuit Addresses the Defend Trade Secrets Act and Appears to Have Applied the Inevitable Disclosure Doctrine

by Seyfarth Shaw LLP on

The Defend Trade Secrets Act (DTSA) states very clearly that an injunction issued pursuant thereto may not “prevent a person from entering into an employment relationship,” and that any conditions placed on a former...more

Court Rules Decisively in Battle Between eDiscovery Providers Over Hired Sales Agents: eDiscovery Case Law

by CloudNine on

In a lawsuit filed by DTI against LDiscovery and four former sales agents of DTI who were hired by LDiscovery, claiming they misappropriated trade secrets, interfered with client relationships and breached their contracts, an...more

Rhode Island Court Gives Assignability of Employee Non-Competes a Haircut

Last month, a Rhode Island trial court held that a hairdresser’s noncompetition agreement with the salon for which she had been working, which sold its assets to a successor salon, was not transferable to the successor...more

Nevada Adds Requirements for Valid Non-Competition Agreements and Allows Blue-Penciling

by Seyfarth Shaw LLP on

On June 3, 2017, Governor Sandoval signed Assembly Bill 276 into law, amending Nevada Revised Statute 613, which governs non-competition agreements. Notably, the law adds requirements to the enforceability and validity of...more

Nevada Redefines Non-Compete Standards; Employers Should Promptly Review Their Agreements

The Nevada Legislature recently passed, and the governor approved, a new law addressing employee non-compete agreements, which went into effect on June 3, 2017. The law expressly defines the standards for enforceable...more

Nevada Codifies Amendments For Non-Competes and Other Forms of Restrictive Covenants – Adopts “Blue Pencil” Standard, Imposes...

Nevada’s Assembly Bill 276, which became effective on June 3, 2017 (the “NV Law”), articulates new rules and requirements for employee restrictive covenants, some of which fundamentally alter the State’s prior practices. The...more

Nevada Enacts New Non-Compete Law

by Seyfarth Shaw LLP on

On June 3, 2017, Governor Sandoval signed Assembly Bill 276 into law, amending Nevada Revised Statute 613, which governs non-competition agreements. Notably, the law adds requirements to the enforceability and validity of...more

Top 10 Employment & Labour Issues for Employers

1: Accommodation in the Workplace - OVERVIEW - Employers have a duty to accommodate employees’ needs based on those grounds protected under federal and provincial human rights legislation. All employers are required...more

California Employee Required to Challenge Non-Compete Clause in Indiana

Despite California’s prohibition against non-compete agreements, a federal court in the Eastern District of California recently ruled that a California resident may be subject to the non-compete covenant in his employment...more

Departing Employees: No Need to Disclose an Intention to Compete

by Faegre Baker Daniels on

In the case of MPT Group Limited v Peel [2017] EWHC 1222 (Ch), the High Court examined whether departing employees were required to disclose their intention to compete after the expiry of their restrictive covenants. The...more

Posting Job Opportunity On LinkedIn Profile For New Employer Did Not Violate Non-Compete

by DeWitt Law, LLC on

A fact of life in modern business is an employee’s use of social media, or, in some cases, a former employee’s use of social media, and how it fits in with any post-employment restrictions to which they may be subject. In...more

New Law Brings Changes To Nevada’s Non-Compete Law

by Jackson Lewis P.C. on

Over the last year, Nevada’s non-compete law has undergone a number of changes. The latest is a new law setting forth a new standard by which non-compete agreements are to be evaluated....more

Even a Clear Choice of Law Provision Can Be Vulnerable

by Burns & Levinson LLP on

When two parties reside and/or conduct business in different states, any agreement between them almost always has a choice of law provision. Typically, such a clause is as simple as: “The Parties agree that this Contract...more

The Latest East Coast/West Coast Conflict: Massachusetts Courts Consider the Application of California Law in Non-Compete...

by Seyfarth Shaw LLP on

Hearkening back to the rivalry between the Boston Celtics and Los Angeles Lakers in the 1980s, Massachusetts courts (as well as others around the country) have increasingly been asked to analyze the application of California...more

Tectonic Shift Affecting Enforcement of Noncompetition Agreements Emanates from the 2017 Nevada Legislative Session and Passage of...

by Littler on

Nevada noncompetition law has historically had few seismic shifts, which changed in 2016 when the Nevada Supreme Court issued its opinion in Golden Road Motor Inn, Inc. v. Islam, 376 P.3d 151 (Nev. 2016). That case sent...more

Massachusetts Court Refuses to Entertain Non-Compete Action Against California-Based Employee

by Saul Ewing LLP on

A Massachusetts trial court judge sitting in the Business Litigation Session recently issued a decision, in Oxford Global Resources, LLC v. Hernandez (1684CV003911-BLS2) (June 9, 2017), refusing to enforce Massachusetts...more

Non-Competition Clauses: Enforceable or Just for Show?

by Field Law on

When can a non-competition clause actually stop someone from working? Or are these clauses just for show? Let's take a look at a couple of cases involving departing employees who find themselves in hot water with a former...more

Employment Law Navigator – Week in Review: June 2017 #3

by Zelle LLP on

Last week, in recognition of the 50th anniversary of the passage of the Age Discrimination in Employment Act, the EEOC held a public meeting at which experts advised that age discrimination and bias against older workers...more

Time to Review Your Non-Competition Agreements in Light of New Nevada Statutory Amendments

by Snell & Wilmer on

On June 3, 2017, the Governor of Nevada signed Assembly Bill 276 into law, making substantial changes to Nevada Revised Statute (“NRS”) 613, which governs non-competition agreements. The amendments are notable for not only...more

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