News & Analysis as of

Non-Compete Agreements Restrictive Covenants

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 -

North Carolina Business Court Addresses Consideration Requirement for Covenant Not to Compete

by Nexsen Pruet, PLLC on

In American Air Filter Co., Inc. v. Price, No. 16 CvS 13610, 2017 WL 2797794 (N.C. Super. Ct. June 26, 2017), the plaintiff’s former employee signed an employment agreement that renewed automatically each year. The agreement...more

Referral Sources Can Be A Protectable Interest Under Florida Law

by Jackson Lewis P.C. on

In Florida, non-competition and other restrictive covenant agreements are enforceable to the extent they are tailored to protect a legitimate business interest. On September 14, 2017, the Florida Supreme Court held that a...more

Kansas Decision Highlights The Perils Of Overreach In Restrictive Covenant Agreements

by Jackson Lewis P.C. on

In a recent decision examining Kansas non-compete law, the United States District Court for the District of Kansas partially granted a company’s motion to enjoin its former employee’s violations of the non-compete and...more

Blog: Non-Competes for California Employees in M&A Deals: Don’t Fudge It

by Cooley LLP on

Post-employment non-compete covenants are generally invalid in California, with certain limited but important exceptions like when a business or associated goodwill is sold and the buyer – as part of the deal – wants to...more

Ineligible Coach On The Field – Assessing Whether Restrictions Are Enforceable In Contracts

With the start of college football season around the corner, attention turns to off-season shake ups in coaching staffs. One controversial change involved defensive coordinator Robert H. Shoop. Shoop traded in his blue and...more

Non-compete post-termination restrictions: de minimis carve-out - Tillman v. Egon Zehnder Limited

by Dentons on

We considered the case of Tillman in our last edition of the newsletter but it's back again. Ms Tillman has successfully appealed to the Court of Appeal, which has made a finding that her non-compete restriction was...more

Protecting Business Interests: Don't Get Stung by an Overly Wide Non-Compete

by Faegre Baker Daniels on

In Tillman v Egon Zehnder Ltd [2017] EWCA Civ 1054 the Court of Appeal examined the enforceability of a non-compete covenant. Ms Tillman was the global co-head of financial services at Egon Zehnder Ltd (EZ), a professional...more

NYC Proposes Ban on Non-Competes

by Reed Smith on

New York City, which for years has been a trailblazer in employee-friendly workplace legislation, is at it again. Late last month, the NYC Council proposed a bill that would prohibit non-compete agreements for low-wage...more

National Survey On Restrictive Covenants In Employment

by Fox Rothschild LLP on

This survey has been provided by the Fox Rothschild Labor and Employment and Securities Industry practice groups as a quick reference for in-house counsel and human resource professionals. The law in this area not only...more

North Carolina Business Court Decision Could Impact Enforceability of Many Non-Competition Covenants

A recent decision in the North Carolina Business Court could have significant implications on non-competition covenants in employment agreements that contain a very common automatic renewal term. The decision, if followed by...more

Do employees need to disclose intention to compete?

by Dentons on

All employment contracts have an implied term ensuring that employees will serve their employer with good faith and fidelity. This implied term covers numerous things, including prohibiting employees from competing with their...more

Non compete clauses and employees destined for greatness

by Dentons on

The case of Egon Zehnder Ltd v. Mary Caroline Tillman is another useful reminder to ensure that restrictive covenants are fit for purpose and, whilst in this case the covenants were upheld, it is also a reminder to ensure...more

Tips for Drafting Executive Employment Agreements – Tip #3 – Restrictive Covenants

by Bryan Cave on

This article continues with another tip for drafting executive employment agreements and the importance of consulting counsel. For every well drafted executive employment agreement in the business world, there seem to be...more

Illinois Employers Should Not Depend on Blue Penciling to Enforce Restrictive Covenants

by Seyfarth Shaw LLP on

Illinois is one of several jurisdictions that recognizes the authority of courts to blue pencil or judicially modify otherwise unenforceable restrictive covenants to be enforceable. See, e.g. Weitekamp v. Lane, 250 Ill. App....more

Recent Illinois Developments in Employee Non-Compete and Trade Secret Enforcement Actions: What Every Employer Should Know

by Franczek Radelet P.C. on

Over the past several months, state and federal courts in Illinois have issued several important decisions that will impact employers’ efforts to enforce post-employment restrictive covenants and protect their trade secrets....more

Other Perspectives on Trends in Employee Noncompetition Agreements

by Bryan Cave on

In mid-May, the New York Times published a long article reporting a national trend that employers are expanding both the number of employees who are required to sign non-competition agreements and the types of employees...more

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

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

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

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