In an expected but still potentially paradigm-shifting move for employers, the Federal Trade Commission (FTC) has issued a “Final Rule” banning most noncompete agreements nationwide. The FTC justified its position by...more
In a bombshell ruling last year that upended longstanding Delaware law, the Delaware Chancery Court ruled in Ainslie v. Cantor Fitzgerald, L.P., 2023 WL 106924 (Del. Ch. Jan. 4, 2023), that forfeiture-for-competition clauses,...more
Non-competition agreements have been a political hot-button issue for the last year out of growing concern, on both sides of the aisle, that these agreements are overused to the detriment of employees. On the final day of...more
The Nevada Supreme Court recently addressed the question of whether lower courts may blue-pencil an otherwise unenforceable noncompetition agreement pursuant to a provision in the agreement that allows for court modification...more
...In an industry so focused on the development and promotion of personalities and distinguishing its information and entertainment from the competition, talent non-competition agreements can be critical. But, as the saying...more
In some situations, lawyers can determine that post-employment noncompetition agreements are likely to be declared automatically invalid. For example, a North Carolina employer that attempts to obtain a five year...more
In July 2016, the Nevada Supreme Court held that when a non-compete agreement extends beyond what is necessary to protect the employer’s interest, the agreement is wholly unenforceable and courts may not modify or “blue...more
In a recent opinion, the Supreme Court of Nevada refused to adopt the “blue pencil” doctrine when it ruled that an unreasonable provision in a non-compete agreement rendered the entire agreement unenforceable. “Blue...more
In the first decision to reach the Nevada Supreme Court on whether state district courts may modify or “blue pencil” non-competition agreements, the high court has concluded that doing so would violate Nevada law. Golden Road...more
Nevada, unlike California, applies a reasonableness test to non-compete agreements. Although the Nevada courts haven’t identified a specific heuristic to be followed, a covenant not to compete will be found to be...more
South Carolina courts evaluate the enforceability of non-compete provisions executed in the employment context and in connection with the sale of the business under the same reasonableness test. To be enforceable in South...more
The Alabama legislature recently passed a comprehensive revision of the state’s noncompete statute, and Governor Bentley has signed the act into law. The new statute will become effective January 1, 2016. The new statute does...more