News & Analysis as of

Restrictive Covenants

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

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

Two Employment Law Issues Startups Should Know About

by Varnum LLP on

It's no secret that the first year of operation can make or break a startup. Don't let overlooked employment issues be your startup's downfall. Below is a brief overview of two major issues startups face in their first year....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

Construction E-Note - March 2017

by Burr & Forman on

In an article published on March 10, 2017 by Construction Executive, Meghan Cox provides guidance on how businesses can reduce the risks associated with violence in the workplace and how businesses should handle this violence...more

For Your Consideration: Recent State-to-State Developments on Sufficient Consideration for Employee Non-Compete Agreements

The various laws, statutes, and policies governing non-compete agreements are nuanced, inconsistent, and sometimes downright contradictory from state-to-state. The issue of consideration is no different. Like other...more

UK: Employee Post-Termination Restrictions Under English Law: Five Things You Need To Know

by Dentons on

It is often the case that the drafting of post-termination restrictions only comes into focus on enforcement. Ideally, however, the careful drafting of such restrictions should be a priority when drafting employment contracts...more

Alert: What US Lawyers Should Know About Protecting Confidential Information in the UK

by Cooley LLP on

Confidential information can be one of a business's most prized and valuable assets, regardless of the industry in question. However, it is rarely something which can be locked in a safe because employees often require access...more

China: Non-Competes and Employee Post-Departure Reporting Obligations

by Dentons on

"Non-compete" refers to an agreement concluded between an employer and an employee at the time of hire, which provides that for a certain period after the termination or rescission of the employment contract, the employee...more

China: Application of Non-Competes To Protect Business Secrets

by Dentons on

An enterprise may have no patents or trademarks, but definitely have business secrets. Business secrets—the enterprise’s core information assets—are important intangible assets that go to the core competence of the...more

Good Will Warrants Injunction Says District of New Jersey

by Jackson Lewis P.C. on

On February 15, 2017, the U.S. District Court for the District of New Jersey in Menasha Packaging Co., LLC v. Pratt Indus., No. 17-0075, 2017 U.S. Dist. LEXIS 22318 (D.N.J. Feb. 15, 2017) granted a preliminary injunction in...more

What Does it Mean to “Modify” an Unenforceable Non-Competition Covenant Under Georgia’s Restrictive Covenants Act?

by Jackson Lewis P.C. on

Although Georgia’s Restrictive Covenants Act has been on the books since the spring of 2011, no judge has decided the exact scope of Georgia courts’ blue-penciling abilities – until now....more

In Georgia, the Blue-Pencil Only Strikes Overly Broad Non-Competes and Does Not Rewrite Them

by Seyfarth Shaw LLP on

In Spring 2011, the Georgia legislature passed a new restrictive covenant statute, which, for the first time, allowed Georgia courts in reviewing non-competition agreements between employer and employee to blue-pencil or...more

Non-Compete News - New York Will Not Stop Fired Employees from Competing

by FordHarrison on

A company that terminates an employee — even if it offers the employee the chance to apply for a position with the company’s successor — cannot enforce restrictive covenants over that employee, a New York appeals court...more

Trump’s Executive Order on Ethics

Takeaways - Trump’s Executive Order on Ethics Commitments by Executive Branch Appointees supersedes and revokes Obama’s Executive Order. It requires appointees to sign a similar Ethics Pledge relating to receipt...more

Worker status – Pimlico Plumbers case

by Dentons on

Pimlico Plumbers engaged Mr Smith as a plumber for around five and a half years. Four months after he suffered a heart attack, Pimlico brought the engagement to an end. Mr Smith issued proceedings in the employment tribunal...more

Employees Bound By Non-Compete By Clicking On Box To Accept Stock Grants

by Saul Ewing LLP on

Employees at payroll processing giant ADP were held to the terms of a non-compete contained in online stock award documents when they clicked the “I have read and agreed” button in order to receive stock grants. On February...more

New York Appellate Court Declines to Enforce Noncompetes Against Employees Terminated Without Cause

by BakerHostetler on

A recent decision by the New York Supreme Court, Appellate Division for the First Department, Buchanan Capital Markets, LLC v. DeLucca, 144 A.D.3d 508 (1st Dep’t. 2016), suggests that noncompetition restrictions against...more

Three Point Shot - February 2017

by Proskauer Rose LLP on

Ski Manufacturer Chills Bode Miller's Comeback - World champion skier and six-time Olympic medalist Samuel "Bode" Miller had his eye on coming out of retirement for the 2016-17 season before a contract dispute with his...more

Click Here — 3rd Circuit Enforces Restrictive Covenants Tied to Electronic Acceptance of Stock Award

On February 7, 2017, the Third Circuit affirmed a partial preliminary injunction order barring two former ADP employees from soliciting customers for their new employer for one year. This decision is notable as it affirmed...more

The Future of Noncompetition Agreements in Massachusetts and Beyond

by Wilson Elser on

The landscape of employee noncompetition (noncompete) agreements is in flux: most states allow such agreements and many states have enacted legislation that governs them. In Massachusetts, the legislature has considered...more

Here We Go Again: Massachusetts Non-Compete Legislation Back in Play

As we previously reported, the Massachusetts House and Senate passed contrasting versions of non-compete reform bills in 2016 but were unable to come to an agreement by the end of the legislative session. Efforts began anew...more

"Navigating the Challenges of Chinese Acquisitions of US Insurers"

Chinese investment in the U.S. insurance industry continued steadily in 2016, notwithstanding efforts by the Chinese government to impose new restrictions on outbound M&A. (See "Regional Focus: Asia.") Examples of such...more

Prohibition on 'right of first refusal' clauses in financing transactions

by White & Case LLP on

In May 2015 the Financial Conduct Authority (FCA) launched a market study to assess, among other matters, the effects of cross-selling and cross-subsidising of investment and corporate banking services in the UK by investment...more

Non-Compete News – Georgia Court Interprets Georgia's Blue Penciling Statute

by FordHarrison on

It’s time to bring back FordHarrison’s Non-Compete News! And what better way to kick off 2017 than with Lifebrite Labs, LLC v. Cooksey (N.D. Ga. December 2016), Georgia’s first-ever published decision interpreting how a...more

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