News & Analysis as of

Non-Solicitation Agreements

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

by Fisher Phillips on

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

To Connect Or Not To Connect, That Is The Non-Solicitation Agreement Question

by Seyfarth Shaw LLP on

Seyfarth Synopsis: A former employee’s social media activities were not “solicitations” that breached his employment non-solicitation agreement where no suggestion to join the former employee was apparent from the activity....more

Is My Noncompete With an Independent Contractor Enforceable?

by Fisher Phillips on

The Eight Circuit recently addressed this question in Ag Spectrum Co. v. Elder, Case No. 16-3113 (8th Cir. August 2, 2017). In that case, Ag Spectrum contracted with Vaughn Elder to work as an independent contractor. Elder...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

Bankers Life and Casualty: Illinois Appellate Court finds Connecting to Old Colleagues via LinkedIn Does not Constitute Unlawful...

New job to-do list: (1) send goodbye email; (2) attend goodbye party; (3) update LinkedIn account; and (4) then use said LinkedIn account to send old colleagues new contact information. This sounds like a pretty standard...more

The Third Circuit Addresses the Defend Trade Secrets Act and Appears to Have Applied the Inevitable Disclosure Doctrine

by Seyfarth Shaw LLP on

The Defend Trade Secrets Act (DTSA) states very clearly that an injunction issued pursuant thereto may not “prevent a person from entering into an employment relationship,” and that any conditions placed on a former...more

Court Rules Decisively in Battle Between eDiscovery Providers Over Hired Sales Agents: eDiscovery Case Law

by CloudNine on

In a lawsuit filed by DTI against LDiscovery and four former sales agents of DTI who were hired by LDiscovery, claiming they misappropriated trade secrets, interfered with client relationships and breached their contracts, an...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

Employment News - July 2017

by Hogan Lovells on

You cannot be serious – application for injunction refused - In NIIT Technologies Ltd v Chaturvedi the High Court turned down an application to enforce a non-solicitation of employees covenant, on the basis that there was...more

Top 10 Employment & Labour Issues for Employers

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

Even a Clear Choice of Law Provision Can Be Vulnerable

by Burns & Levinson LLP on

When two parties reside and/or conduct business in different states, any agreement between them almost always has a choice of law provision. Typically, such a clause is as simple as: “The Parties agree that this Contract...more

North Carolina Appellate Court Refuses to Lift Preliminary Injunction in Non-Solicitation Case Before Trial

When an employer believes that a former employee has violated post-employment restrictive covenants, it often seeks injunctive relief intended to prevent harm to its business pending a final determination on the merits of the...more

What Would the Perfect Employee Agreement Look Like?

Lawyers strive for perfection in their work, but time constraints, budgets, and other factors work against us. Also, perfection is not always the same thing in every circumstance. It is interesting, however, to contemplate...more

Hope For the Best, Prepare For the Worst: How to Effectively Manage the Perpetual Risk of Employee Loss

by Miles & Stockbridge P.C. on

Inevitably, all businesses must deal with employee turnover and the departure of key employees. Such departures have become more frequent of late, as the economy is again on the rise, more jobs are available, the unemployment...more

How Do You Prove Damages When Executives Breach A Non-Solicit Provision?

by Zuckerman Spaeder LLP on

In 2011, a group of executives left Horizon Health Corporation for a competitor, Acadia, but they didn’t leave everything behind. Horizon’s president took a “massive, massive amount” of Horizon documents with him on an...more

Protecting Intellectual Property from Employee Theft

by Revision Legal on

Business owners who, after an employee dispute or after terminating an employee, have been the victims of intellectual property theft often contact us. Often, the solutions to this problem can be incredibly costly. Here are...more

National Survey on Restrictive Covenants

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

Agreements Are Not Enough: Reasonable Efforts Needed

Many employers, including construction contractors and material suppliers, attempt to protect their business by having their employees sign non-competition, non-solicitation, non-disclosure, and/or confidentiality agreements....more

Pennsylvania Court Rules That Switch To At-Will Work Doesn’t End Restrictive Covenant

by Saul Ewing LLP on

On April 19, 2017, a Pennsylvania appeals court ruled that conversion to at-will employment after the end of a contract does not relieve employees of a non-solicitation provision. This opinion overturns a trial court decision...more

Conversion to At-Will Status Does Not Void Restrictive Covenant, PA Court Holds

by Ballard Spahr LLP on

Non-solicitation covenants contained in two expired employment agreements were still in effect even after the employees in question were converted to "at-will" status and later terminated, the Pennsylvania Superior Court has...more

Employment News - April 2017 #3

by Hogan Lovells on

Taking the long view – potential nine month restriction for broker upheld - In Tradition Financial Services Ltd v Gamberoni the High Court has upheld six month non-compete and non-solicitation covenants, despite...more

Restrictive Covenants Can Swing Both Ways: A 3-Step Plan To Avoiding Legal Risks When Onboarding New Employees

by Fisher Phillips on

Employers have been using restrictive covenant agreements – contracts that contain non-compete, customer non-solicitation, employee non-solicitation, or non-disclosure of confidential information – with increasing frequency...more

Business Litigation Reporter - April 2017

by Goodwin on

Representations and Warranties Insurance Policies – Lessons from the Claims Process - Representations and warranties insurance policies (R&WI Policies)—designed to protect parties from loss arising from breaches of...more

Missouri Legislator Introduces Bill to Ban Restrictive Covenants

by Seyfarth Shaw LLP on

Since July 1, 2001, Missouri law with respect to non-solicitation clauses has been fairly straightforward. Specifically, § 431.202 of the Missouri Statutes states that a covenant not to solicit between an employer and an...more

Watch for the Fox in Your Henhouse: Gig Companies at Risk

by Fisher Phillips on

Intellectual property threats (IPT) to companies participating in the gig economy may be greater than those experienced by traditional business. While this may seem self-evident to some, reflection on the matter confirms to...more

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