News & Analysis as of September 26, 2024

Appeals

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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 Do Employers Navigate Evolving Landscape of Restrictive Covenants Following NLRB's McLaren Macomb Decision?

Adams and Reese LLP on 4/12/2024

The NLRB issued its order and decision last year in McLaren Macomb, holding that employers violate the NLRA by enforcing — or even offering — severance agreements containing overly broad confidentiality and non-disparagement...more

Future Not Looking Bright For California Employee Nonsolicits

Proskauer Rose LLP on 2/27/2024

On Jan. 1, new legislation aimed at curbing the use of unenforceable noncompete agreements took effect in California. The new laws, which impose potentially harsh consequences on employers for requiring employees to sign...more

Employment Litigation Roundup: November 2023

Seward & Kissel LLP on 12/4/2023

Ex-employee’s golf outing with customer does not violate non-solicit - An auto parts manufacturer in Michigan sought a preliminary injunction against a former sales employee for violating his restrictive covenants,...more

Employment Litigation Roundup: October 2023

Seward & Kissel LLP on 11/1/2023

October 2023: Public information can be a trade secret; Litigants get creative to contest non-competes; NJ addresses the enforceability of non-disparagements; Law firm DEI programs face legal challenges - Compilation of...more

Stryking Noncompete Preliminary Injunction

McDermott Will & Emery on 3/10/2023

The US Court of Appeals for the Sixth Circuit upheld a district court’s grant of a preliminary injunction restricting a former employee from working for conflicting organizations or communicating with a competitor’s counsel....more

Non-Compete Agreements: Provide Them Ahead of Time – But Don’t Let Them Be Signed

Faegre Drinker Biddle & Reath LLP on 7/19/2022

On March 8, 2022, the Fifth Circuit Court of Appeals held that a non-compete agreement was not enforceable because the employer seeking to enforce the agreement had presented it to the employee, and the employee had signed...more

Ninth Circuit Denies Sherman Act Challenge To No-Poach Provision

Sheppard Mullin Richter & Hampton LLP on 9/16/2021

In an important decision on August 19, 2021, the Ninth Circuit Court of Appeals in Aya Healthcare Services, Inc. v. AMN Healthcare, Inc. affirmed the grant of summary judgment in favor of AMN, finding that the...more

North Carolina Courts Defeat Another ‘Overbroad' Noncompete

Parker Poe Adams & Bernstein LLP on 11/18/2019

In recent years, North Carolina courts have become increasingly resistant to enforcing noncompetition and non-solicitation restrictions they view as insufficiently narrowed to the specific competitive threat presented by the...more

AMN Healthcare’s impact on the enforceability of non-solicitation provisions in California raises two new unanswered questions

Hahn Loeser & Parks LLP on 9/12/2019

California Employee mobility and the right to compete are sacrosanct in California, and have been since its Legislature enacted section 16600 of the California Business and Professions Code, which voids “every contract by...more

N.C. Court of Appeals Rejects Customer Non-Solicitation Restriction

Parker Poe Adams & Bernstein LLP on 8/15/2019

When we talk with clients about post-employment “noncompete” agreements, this term actually encompasses a number of different restrictions. In addition to provisions that restrict the employee from working for a competitor...more

Colorado Courts Further Restrict Use of Restrictive Covenants

Dorsey & Whitney LLP on 8/9/2019

Refusing to enforce a non-solicitation provision that violated public policy, the Colorado Court of Appeals held that parties to a non-solicitation agreement cannot contractually obligate the court to “blue pencil” the...more

Colorado Court Decides Issue of First Impression on Restrictive Covenants

Littler on 8/8/2019

The Colorado Court of Appeals recently decided an issue of first impression regarding noncompetition and nonsolicitation agreements. The decision in 23 LTD v. Herman highlights an important consideration for Colorado...more

Employment Flash - January 2019

Skadden, Arps, Slate, Meagher & Flom LLP on 1/31/2019

This edition of Employment Flash looks at developments in labor and employment law, including with respect to restrictive covenants; new state anti-harassment laws; minimum wage increases; age bias claims; and the employee...more

Contractual Employee Non-solicitation Provisions Under Attack: Employer Loses Battle in Case Involving Unique Facts

Fisher Phillips on 1/22/2019

California’s prohibition against contracts that restrain a person’s ability to engage in a lawful business, profession, or trade is well-established and well-known. Ten years ago, in Edwards v. Arthur Andersen LLP (2008) 44...more

Non-Compete News: Is a Non-Solicitation of Employees Provision Enforceable in California?

FordHarrison on 12/7/2018

Last month, California’s Fourth District Court of Appeal issued AMN Healthcare, Inc. v. Aya Healthcare Servs., Inc., 28 Cal. App. 5th 923 (Cal. Ct. App. 2018), a decision calling into question the validity of non-solicitation...more

Court Of Appeal Upholds Injunction Restraining Enforcement Of Non-Solicitation Agreement

Allen Matkins on 11/2/2018

California Business & Professions Code Section 16600 is particularly tough on covenants not to compete declaring, with certain exceptions, "every contract by which anyone is restrained from engaging in a lawful profession...more

Non-Compete News: In Georgia, Whether It Is a Non-Compete or a Non-Solicit Makes All the Difference

FordHarrison on 10/18/2018

Georgia’s Restrictive Covenants Act (the “RCA”) became effective in May 2011, but it took nearly six years before a court published a decision interpreting the statute in the context of a non-competition provision....more

Massachusetts Court Provides Guidance on Choice of Law and Forum Selection Clauses in Restrictive Covenants

Ogletree, Deakins, Nash, Smoak & Stewart,... on 10/1/2018

With Massachusetts’s comprehensive noncompete law taking effect on October 1, 2018, many employers are reviewing and likely revising their restrictive covenants to ensure that they are compliant with the new law. In...more

Tennessee Court of Appeals Finds that Former Employee Breached Non-Compete Agreement Through Actions of His Subordinates

Butler Snow LLP on 12/11/2017

In November 2017, the Tennessee Court of Appeals upheld a Nashville trial court’s determination that a former employee violated his noncompete agreement by managing employees who solicited competing business in the restricted...more

Non-Compete News: Georgia Court of Appeals Confirms Lack of Geographic or Material Contact Limitation Does Not Invalidate...

FordHarrison on 11/21/2017

Georgia’s recent Restrictive Covenant Act, enacted in 2011, does not directly address non-solicitation of employees a/k/a non-recruitment covenants, thereby leaving such provisions subject to the principles developed by...more

Who Poked Whom First: Does a Friend Request or Social Media Invite Count as Solicitation?

Fisher Phillips on 8/18/2017

When Gregory Gelineau quit his job at an Illinois-based insurance company to work for a competitor, he sent LinkedIn invitations to a group of his former co-workers. In response, Gelineau’s former company sued him. The...more

Indiana Court of Appeals Rules on Irreparable Harm, Laches, Extension Clauses, and More in Recent Restrictive Covenant Case

Ogletree, Deakins, Nash, Smoak & Stewart,... on 12/7/2016

The Indiana Court of Appeals recently issued a restrictive covenant ruling addressing several significant issues. On November 30, 2016, in Hannum Wagle & Cline Engineering, Inc. v. American Consulting, Inc., the Indiana Court...more

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

Seyfarth Shaw LLP on 12/3/2016

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

Agreement Prohibiting Solicitation of Employees by Former Employee may be Unenforceable

Ruder Ware on 8/24/2016

A recent decision from the Wisconsin Court of Appeals has raised serious questions regarding non-solicitation agreements that are often included as part of an employment agreement or severance agreement. A non-solicitation...more

Trend In The Courts: It’s Getting Harder To Obtain Preliminary Injunctions In Restrictive Covenant Cases

Seyfarth Shaw LLP on 11/20/2015

In recent weeks, courts almost routinely have been denying preliminary injunctive relief in cases alleging violation of non-compete and similar employment agreements. Three examples: Burleigh v. Center Point Contractors,...more

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Non-Compete Agreements › Non-Solicitation Agreements › Appeals

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