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Non-Compete Agreements › Restrictive Covenants › Appeals

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 -
Quarles & Brady LLP

Texas Federal Judge Strikes Down FTC Non-Compete Ban

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Judge Ada Brown of the U.S. District Court for the Northern District of Texas on Tuesday struck down the Federal Trade Commission’s (FTC) pending ban on non-compete covenants, concluding that the issuance of the FTC’s Rule...more

Adams and Reese LLP

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

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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

Proskauer Rose LLP

Future Not Looking Bright For California Employee Nonsolicits

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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

ArentFox Schiff

California Employers Face Feb. 14 Deadline and Tighter Non-Compete Prohibitions

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California has long had the most restrictive laws against employee non-compete agreements. Effective January 1, two new legislative bills, Senate Bill 699 and Assembly Bill 1076, tightened California’s restrictions even...more

Seward & Kissel LLP

Employment Litigation Roundup: November 2023

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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

Littler

Ontario, Canada Appeal Court Decides Non-competition Clause in Employment Agreement Governed by Common Law is Unenforceable

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In M & P Drug Mart Inc. v. Norton, 2022 ONCA 398, the Court of Appeal for Ontario (OCA) dismissed an employer’s appeal of an application judge’s decision that a non-competition clause in an employment agreement governed by...more

FordHarrison

Non-Compete News: Georgia Appeals Court Clarifies What Constitutes Appropriate Definition of Territory In Non-Compete Under RCA

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Last month, in American Plumbing Professionals, Inc. v. ServeStar, LLC, Georgia’s Court of Appeals reversed a trial court’s determination that a non-compete provision was unenforceable and void because its territory was too...more

Rumberger | Kirk

Florida Still Strongly Favors Employer’s Non-Compete Agreements 

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Non-compete and confidentiality clauses have long been a fixture in employment agreements in Florida. However, there has been some dissention as to whether such restrictive covenants continue to apply where an employment...more

CDF Labor Law LLP

Ninth Circuit Rejects Enforcement of New Jersey Choice of Law and Non-Compete Agreement In Employment—The Importance of Being The...

CDF Labor Law LLP on

In novel and important decision, DePy Synthes Sales v. Howmedica Ostionic’s, Ninth Cir. Case No. 21-55126, on March 14, 2022, the Ninth Circuit Court of Appeals upheld the lower court’s decisions to prevent a former employer...more

Jackson Lewis P.C.

Ohio Appeals Court Reinforces a Trial Court’s Ability to Modify Noncompete Agreements

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In MetroHealth Sys. v. Khandelwal, 2022-Ohio-77, Ohio’s Eighth District Court of Appeals affirmed a trial court’s modification of a noncompete agreement between a hospital and a physician formerly employed by the hospital....more

Faegre Drinker Biddle & Reath LLP

Ixchel Pharma, LLC v. Biogen, Inc.: Opening the Door to Non-Compete Agreements Between Businesses in California

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In a recent decision, Ixchel Pharma, LLC v. Biogen, Inc., the Supreme Court of California opened the door for some restrictive covenants between commercial enterprises, but it left alone California law generally prohibiting...more

White & Case LLP

How long is too long? Construing non-compete restrictions in shareholders’ agreements

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Non-compete restrictions for key stakeholders are common in shareholders' agreements. In Guest Services Worldwide v Shelmerdine, the Court of Appeal upheld a 12-month post-departure restriction, rejecting arguments that...more

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

Indiana Supreme Court Reaffirms That the Blue Pencil Doctrine Is an ‘Eraser’ for Overbroad Restrictive Covenant Language

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

On December 3, 2019, in Heraeus Medical, LLC v. Zimmer, Inc., the Indiana Supreme Court reaffirmed the “blue pencil doctrine,” likening the doctrine to an eraser and stating that Indiana courts may only delete language from...more

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

Louisiana Court Upholds Ruling Allowing for the Reformation of a Noncompetition Agreement

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

The Louisiana Second Circuit Court of Appeal recently held that a noncompetition provision under La. R.S 23:921 affecting a former member of an accounting limited liability company (LLC) could be reformed when the scope of...more

Parker Poe Adams & Bernstein LLP

North Carolina Courts Defeat Another ‘Overbroad' Noncompete

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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

Hahn Loeser & Parks LLP

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

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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

FordHarrison

Non-Compete News: – Georgia Court Interprets Non-Compete Statute's "Sale-of-a-Business" Provision

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Georgia’s Restrictive Covenants Act (O.C.G.A. § 13-8-50 et seq.) (“RCA”) governs Georgia non-compete agreements entered into after May 2011. Very few courts have interpreted the RCA since its inception. In Bearoff v. Craton,...more

Parker Poe Adams & Bernstein LLP

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

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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

Dorsey & Whitney LLP

Colorado Courts Further Restrict Use of Restrictive Covenants

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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

Littler

Colorado Court Decides Issue of First Impression on Restrictive Covenants

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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

Littler

UK Supreme Court Revises Test for Evaluating Post-termination Restrictions

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To much fanfare and the great excitement of many employment lawyers, the UK Supreme Court recently delivered its first judgment on employment post-termination restrictions for a century, in Tillman v. Egon Zehnder. The court...more

Morgan Lewis

UK Supreme Court Overturns Longstanding Guidance on Severance in Post-Termination Restrictions

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The UK Supreme Court on July 3 issued its judgment in Tillman v Egon Zehnder Ltd, reversing the decision of the Court of Appeal and permitting the severance of a noncompete covenant, which prevented an employee from acquiring...more

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

Separating the Good From the Bad: UK Supreme Court Clarifies “Blue Pencil” Test in Restraint of Trade Cases

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On July 3, 2019, in a long-awaited judgment the Supreme Court of the United Kingdom clarified the correct approach to deciding whether words can be severed from a post-employment covenant to leave an employee bound by the...more

Dechert LLP

UK Supreme Court issues important decision upholding non-compete

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The UK Supreme Court has today published its long-awaited judgment in Egon Zehnder Ltd v Tillman. It held that a six month post-termination non-compete covenant was enforceable against a departing employee even though it...more

Parker Poe Adams & Bernstein LLP

N.C. Court of Appeals Voids Noncompete With Specialized Physician

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In addition to the typical reasonableness argument and other defenses against the enforcement of employment noncompetition covenants, in some cases courts will invalidate these agreements based on a public policy argument....more

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