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Non-Compete Agreements › Garden Leave

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 -
Steptoe & Johnson PLLC

The Federal Trade Commission Ban on Non-Competes and its Impact on Transitioning Representatives and Advisors

Steptoe & Johnson PLLC on

On April 23, 2024, the Federal Trade Commission (FTC) issued its final rule banning non-compete provisions nationwide (the Rule). While the FTC contends that non-competes keep wages low, suppress new ideas and stifle the...more

Harris Beach PLLC

Summary of FTC’s Non-Compete Prohibition and Best Practices For The Business World

Harris Beach PLLC on

As reported earlier, the FTC voted this week to approve its Final Non-Compete Clause Rule (the “Rule” or “Final Rule”), which outlaws almost all non-compete agreements between employees and employers throughout the country. ...more

Troutman Pepper

Unraveling the Concept of Garden Leave: Insights From Silicon Valley — Hiring to Firing Podcast

Troutman Pepper on

In this episode of the Hiring to Firing Podcast, Partners Tracey Diamond and Evan Gibbs, along with Dan Sieck, a partner in the firm's Corporate practice group, discuss the hit TV show Silicon Valley and the concept of garden...more

Saiber LLC

The Changing Landscape of Non-Competes and Restrictive Covenants

Saiber LLC on

A common example of a non-compete restriction is a new CPA who signs such an agreement as part of his or her onboarding paperwork. Years later, the CPA considers moving to another firm, or opening their own firm, but that...more

Conn Kavanaugh

How Will Proposed FTC Rule on Non-Compete Agreements Affect Your Business?

Conn Kavanaugh on

On January 5, 2023, the Federal Trade Commission (FTC) announced a proposed rule that, if enacted, would amount to a near-total ban on the use of non-compete agreements nationwide. If enacted as written, the FTC’s proposed...more

Bowditch & Dewey

Client Alert: Garden Leave Payments Under MA Noncompetition Agreement Act Not Covered by Wage Act

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A Massachusetts Federal District Court has held that an employer’s garden leave payments to a former employee pursuant to a non-compete provision are not considered “wages” under the Massachusetts Wage Act. As a...more

Saiber LLC

CPAs Beware: Proposed Legislation Would Impact Enforceability of Non-Compete and Non-Solicit Agreements

Saiber LLC on

For CPAs, restrictive covenants — in the form of non-competition and non-solicitation agreements — are part of life. Most firms, and most CPAs, understand that these restrictive covenants are enforceable to varying degrees....more

Seyfarth Shaw LLP

Federal Court Determines that Garden Leave Payments Under Massachusetts Non-Compete Law Are Not Wages, Limiting Former Employees’...

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The District of Massachusetts recently held that garden leave payments, whereby a former employee subject to a restrictive covenant is paid by the former employer for the duration of the restrictive period, do not constitute...more

Fisher Phillips

Will New Jersey Become the ‘Garden Leave’ State? Proposed Legislation Would Set Strict Rules for Non-Competes Including Full Pay...

Fisher Phillips on

New Jersey recently joined a growing number of states that have taken legislative efforts to significantly limit the enforceability of post-employment restrictive covenant agreements – such as non-compete and non-solicitation...more

Hendershot Cowart P.C.

Drafting Enforceable Non-Compete Agreements for a Remote Workforce

Hendershot Cowart P.C. on

If you have a remote workforce, chances are you have employees in multiple states. Many of these employees may have access to proprietary information that could damage your business if used in competition against you....more

Fisher Phillips

5 Tips for Protecting Your Trade Secrets Without an Enforceable Noncompete Agreement

Fisher Phillips on

2022 hasn’t been the friendliest year for employers that seek to protect trade secrets with a noncompete agreement. Although many jurisdictions understand the importance of contractually protecting a company’s legitimate...more

FordHarrison

Non-Compete News: The End Of New Jersey Non-Competes as We Know Them?

FordHarrison on

Last week, the New Jersey Assembly’s Labor Committee passed bill A3715, designed to sharply limit the available provisions, use, and enforceability of restrictive covenants in employment contracts by New Jersey employers....more

Epstein Becker & Green

[Webinar] Drafting Enforceable Restrictive Covenants and Confidentiality Agreements for Multi-State Employers - April 5th, 12:30...

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The landscape for restrictive covenants and confidentiality agreements is changing rapidly across the country. Notice periods, compensation thresholds, and consideration requirements are increasingly common, and the days...more

Jackson Lewis P.C.

Oregon Amends Restrictive Covenant Statute To Further Limit Employers’ Use

Jackson Lewis P.C. on

Oregon law on permitted covenants not to compete has been amended to void nonconforming agreements and limit such agreements to employees making at least $100,533, among other changes...more

Jones Day

An Update on Noncompete Legislation Following Passage of Massachusetts' Non-Compete Law

Jones Day on

In October 2018, businesses across the country braced for the effects of a noncompete law that was enacted in Massachusetts. The "garden leave" clause in Massachusetts' noncompete law dictated that during the period in which...more

Wilson Sonsini Goodrich & Rosati

Reminder: Imminent Changes to Enforceability of Non-Competes in Washington State

Wilson Sonsini Goodrich & Rosati on

With the new year fast approaching, employers with Washington-based workers should ensure—if they have not already—that they are prepared to comply with legal changes substantially limiting the enforcement of non-compete...more

Morris James LLP

Delaware Superior Court Enforces Noncompetition Covenant Against Physician Placed on “Garden Leave” Following Notice of voluntary...

Morris James LLP on

The Delaware Superior Court has rejected the effort of a physician, bound by a noncompetition covenant with his former practice group, to argue that the covenant was unenforceable because the practice placed him on “garden...more

Robinson+Cole Manufacturing Law Blog

Protecting a Manufacturer’s Competitive Advantage: Recent Developments in Post-Employment Restrictions

Robinson+Cole Manufacturing Law Blog on

I have posted a few times here about using post-employment restrictions to preserve a manufacturer’s competitive advantage.  See  “Non-Compete Cautionary Tale” (Nov, 2, 2018); “I’m New – And It’s No [Trade] Secret” (Oct. 27,...more

Tonkon Torp LLP

Washington State To Restrict Noncompetition Agreements

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Nationwide there has been continued hostility toward noncompetition agreements for employees. A noncompetition agreement is an agreement entered into by an employee by which the employee (during employment and after) agrees...more

Wilson Sonsini Goodrich & Rosati

Non-Compete Reform Comes to Washington State Employers Beware: Portions of your Washington employment agreements may become void...

Wilson Sonsini Goodrich & Rosati on

After years of stalled efforts, Washington has joined the growing list of states imposing statutory restrictions on employers’ use of restrictive covenants. On May 8, 2019, Governor Inslee signed into law Engrossed Substitute...more

Adler Pollock & Sheehan P.C.

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

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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

Dorsey & Whitney LLP

Washington Implements a Salary History Ban and Restrictions to Non-Compete Covenants

Dorsey & Whitney LLP on

Last week, Washington signed into law two new employment laws that may have significant impacts on many Washington employers: a salary history ban and restrictions on non-compete covenants. Salary History Ban - On May...more

Fisher Phillips

Washington’s New Non-Compete Bill Brings Challenges For Employers

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Finding that “workforce mobility is important to economic growth and development,” Washington just passed a new law that will significantly restrict noncompetition agreements with both employees and independent contractors....more

Goulston & Storrs PC

Breaking Down the New Massachusetts Noncompete Rules for Employees

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In the four months since the Massachusetts Noncompetition Agreement Act became effective, employers have learned the hard way that implementing the new rules is a lot harder than it seems....more

Skadden, Arps, Slate, Meagher & Flom LLP

Reminder: Review Equity Award Forms for Massachusetts Employees

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Many employers make annual employee equity grants in late February and March. This year, companies should review their form equity award agreements to determine whether a different form is needed for participants who live or...more

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