News & Analysis as of September 22, 2024

Termination

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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 -

The Impact of Indiana’s Restrictions on Physician Non-Compete Agreements

Amundsen Davis LLC on 11/10/2023

Recent Indiana legislative sessions have limited the ability of health care entities to enter non-compete agreements with physicians, and the impact of that legislation is starting to be seen. By way of background, prior...more

Louisiana Restrictive Covenant Signed by C-Suite Employee After Termination Is Unenforceable, State Appeals Court Holds

Ogletree, Deakins, Nash, Smoak & Stewart,... on 1/4/2023

In Louisiana, restrictive covenants—known locally as “no competes”—are unenforceable by statutory default. The applicable statute declares, “Every contract or agreement, or provision thereof, by which anyone is restrained...more

What Employers Need to Know About Newly Proposed Non-Compete Legislation in New Jersey

Sheppard Mullin Richter & Hampton LLP on 7/21/2022

Following a nationwide trend, New Jersey recently joined a growing list of states seeking to limit the use of non-compete and non-solicitation agreements by employers. On May 19, 2022, the New Jersey Assembly’s Labor...more

New Jersey Bill Would Significantly Limit – And Make Employers Pay For – Non-Compete Agreements

Foley & Lardner LLP on 6/28/2022

In early May 2022, New Jersey assemblymen introduced a bill that—if passed—will significantly limit employers’ ability to enter into and enforce employee non-compete agreements. As such, New Jersey may join the growing list...more

Non-Compete Agreements: Does it Matter Whether the Employer or the Employee Terminates the Relationship?

Mitchell, Williams, Selig, Gates & Woodyard,... on 6/9/2022

Often this is not a large concern, but may be applicable in some situations. The first question to ask is when was this non-compete agreement signed? In Arkansas, the watershed date is July 22, 2015, which is when a...more

Unraveling the New (Major) Illinois Restrictive Covenant Law

Saul Ewing LLP on 6/9/2021

On May 31, 2021, both Houses of the Illinois legislature unanimously passed legislation that, if signed by Governor Pritzker, will overhaul the enforceability of restrictive covenants in Illinois. The legislation1 amends the...more

Funny You Should Ask: Employer Considerations For Rehiring Employees

Husch Blackwell LLP on 5/7/2021

As more businesses begin to reintegrate employees into their pre-pandemic workplaces, many of our clients have questions regarding return-to-work issues. In this edition of Funny You Should Ask, we address three questions...more

UK Life Sciences and Healthcare Newsletter - March 2021: Granting Incentives Under U.S. Plans to UK-based Executives

Dechert LLP on 3/26/2021

One of the most effective ways to incentivise staff, in particular senior employees, is to offer them the opportunity to purchase stock or shares in a group company. U.S. companies often operate stock and other incentive...more

Two New Connecticut Bills Aim To Prohibit Physician Non-Competition Agreements

Jackson Lewis P.C. on 3/23/2021

Connecticut lawmakers recently introduced two bills that seek to ban non-competition agreements for physicians. If implemented, this would be the second time in five years that Connecticut has legislated in the area of...more

New Jersey General Assembly To Vote On Renewed Bill Seeking To Curb Restrictive Covenants

Jackson Lewis P.C. on 3/12/2021

New Jersey may be next up to join the growing number of states that significantly restrict the use of non-competition agreements in employment. As we discussed back in December 2017, a bill proposed in New Jersey at the...more

Part 26 of “The Restricting Covenant” Series: COVID-19 Edition

Faegre Drinker Biddle & Reath LLP on 8/17/2020

The global COVID-19 pandemic continues to impact employers and their employees’ work activities in a variety of ways. Millions of workers have been terminated, laid off or furloughed. Companies have shifted to remote...more

Did Your Non-Compete Agreement Just Get Laid Off?

Fisher Phillips on 4/6/2018

Imagine this scenario: Like most businesses, you have undergone the effort and expense of recruiting quality talent to join your workforce. After employment offers are extended and accepted, you provide valuable training to...more

New Jersey Proposes to Drastically Restrict the Use of Non-Compete Agreements

Sheppard Mullin Richter & Hampton LLP on 12/7/2017

Last month, the New Jersey State Senate introduced Senate Bill 3518 (the “Bill”), which, if passed, will severely restrict the use and enforceability of employee non-compete agreements in the state of New Jersey. Most...more

I-16 – Kneeling, Indefinite Leave, DC Updates, Non-Compete Consideration, and Pretty as a Protected Class

Cozen O'Connor on 10/9/2017

This episode discusses kneeling in the NFL/workplace, indefinite leave entitlement, and sufficient consideration for non-competes, provides an update from DC on OT exemptions and class action waivers, and questions whether...more

Top 10 Employment & Labour Issues for Employers

Blake, Cassels & Graydon LLP on 7/5/2017

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

Utah Governor Signs Law Restricting Post-Termination Noncompete Agreements

Ogletree, Deakins, Nash, Smoak & Stewart,... on 3/25/2016

On March 22, 2016, Utah Governor Gary Herbert signed into law the Post-Employment Restrictions Act (H.B. 251), which limits the duration of post-employment noncompete agreements between employers and employees to a maximum of...more

How does Utah’s New Noncompete Law Affect You?

Dorsey & Whitney LLP on 3/23/2016

Utah employers should update their form noncompete agreements to ensure they comply with the state’s new Post-Employment Restrictions Act. Employers of all sizes are subject to the Act, which was adopted by the Utah...more

Cracks in the Fifield Armor?: New Dissent Marks First Big Challenge to Illinois' Bright-Line Restrictive Covenant Rule

Hinshaw & Culbertson LLP on 7/10/2015

When continued employment is the sole consideration for a post-employment restrictive covenant (such as a noncompetition agreement), the Illinois Supreme Court requires that an employee be continually employed for a...more

Fires, Rehires and Non-Competition Agreements: Termination of Employment, No Matter How Brief, May Start the Clock to Run

Akerman LLP - HR Defense on 9/4/2014

An Indiana Court of Appeals has ruled that an employer cannot enforce a two year non-compete agreement against an employee who was fired for just 10 days and then rehired because the termination was treated as permanent and...more

No Non-Compete = Public Ridicule?

Burr & Forman on 4/29/2014

We all know that a well-drafted non-compete agreement is necessary to protect a company’s customer relationships and confidential information when an executive jumps ship. What you might not have considered is that an...more

Act Now Advisory: Since Fifield Is Not Going Away Any Time Soon, Illinois Employers Should Consider Revising the Consideration...

Epstein Becker & Green on 1/9/2014

In June 2013, the Illinois Appellate Court for the First District (i.e., Cook County) held that, absent other consideration, two years of employment is required for a restrictive covenant to be deemed supported by adequate...more

If You Fire Me Without Cause, Can I Ignore My Non-Compete And Steal Your Clients?

Orrick - Employment Law and Litigation on 12/10/2013

In the decades since Post v. Merrill Lynch, Pierce, Fenner & Smith, 48 N.Y.2d 84 (1979), in which the New York Court of Appeals concluded it would be unreasonable to enforce a non-competition agreement requiring forfeiture of...more

Take 5 Newsletter: Restrictive Covenants, Federal Trade Secret Enforcement Initiative, Uniform Trade Secrets Act, Liability for...

Epstein Becker & Green on 7/12/2013

In the area of trade secrets and non-compete law, there continue to be notable developments at the state and federal levels. Here are five recent ones. ...more

Chinese Supreme Court Guidelines Make It Easier for Employers to Enforce Non-Compete Covenants

Davis Wright Tremaine LLP on 5/6/2013

On Jan. 18, 2013, the Supreme People’s Court of China promulgated Judicial Interpretation IV on Several Issues Concerning the Application of Law in Hearing Labor Dispute (the “Interpretation”). The Interpretation went into...more

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