News & Analysis as of

Restrictive Covenants

Other Perspectives on Trends in Employee Noncompetition Agreements

by Bryan Cave on

In mid-May, the New York Times published a long article reporting a national trend that employers are expanding both the number of employees who are required to sign non-competition agreements and the types of employees...more

How Employers Can Avoid California Labor Code Section 925

by Nilan Johnson Lewis PA on

Many non-California employers view the enactment of California Labor Code Section 925 as destroying any possibility of avoiding the state’s restrictive covenants laws for California-based employees. But there is hope! With...more

Investment and corporate banking: prohibition of restrictive contractual clauses

by Dentons on

In Policy Statement 17/13, the FCA has published final rules (in COBS 11A.2) to prohibit UK firms from entering into written agreements with their clients (whether based in the UK or overseas) which contain restrictive...more

The One Area of Connecticut Law Employers Love (For Now)

by Shipman & Goodwin LLP on

Over the weekend, The New York Times ran a surprising (at least to me) article about how Idaho has implemented a legal framework that gives employers a great deal of flexibility in an area getting a good deal more publicity...more

Non-Compete News – Third Circuit Says Tortious Interference with a Non-Compete Requires Actual Knowledge of the Agreement at Issue

by FordHarrison on

An employer hiring an individual known to be subject to a non-compete contract can expect to be accused of tortiously interfering with that contract. On the other hand, the hiring employer should be innocent of wrongdoing if...more

Courts Continue to Enforce Foreign Non-Competes in California While the Window for Such Agreements Slowly Closes

Contrary to common perception, California employees who signed restrictive covenants prior to January 1, 2017 are not completely immune to enforcement of all restrictions on competition. For the second time in several years,...more

The UK Financial Conduct Authority Bans Use of Certain Restrictive Contractual Clauses

by Latham & Watkins LLP on

The ban extends to foreign branches of UK firms; also where services are provided from a firm’s UK establishment. Key Points: ..Effective 3 January 2018 firms subject to the ban cannot enter into agreements that contain...more

Rhode Island Court Gives Assignability of Employee Non-Competes a Haircut

Last month, a Rhode Island trial court held that a hairdresser’s noncompetition agreement with the salon for which she had been working, which sold its assets to a successor salon, was not transferable to the successor...more

Nevada Adds Requirements for Valid Non-Competition Agreements and Allows Blue-Penciling

by Seyfarth Shaw LLP on

On June 3, 2017, Governor Sandoval signed Assembly Bill 276 into law, amending Nevada Revised Statute 613, which governs non-competition agreements. Notably, the law adds requirements to the enforceability and validity of...more

Nevada Redefines Non-Compete Standards; Employers Should Promptly Review Their Agreements

The Nevada Legislature recently passed, and the governor approved, a new law addressing employee non-compete agreements, which went into effect on June 3, 2017. The law expressly defines the standards for enforceable...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

Nevada Enacts New Non-Compete Law

by Seyfarth Shaw LLP on

On June 3, 2017, Governor Sandoval signed Assembly Bill 276 into law, amending Nevada Revised Statute 613, which governs non-competition agreements. Notably, the law adds requirements to the enforceability and validity of...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

JFTC questions the validity of destination clauses in LNG SPAs

by White & Case LLP on

On 28 June 2017, the Japan Fair Trade Commission ("JFTC") issued a report regarding its "Survey on LNG Trades" based on questionnaires and interviews with Japanese and non-Japanese buyers and sellers of LNG (the "Report")....more

Departing Employees: No Need to Disclose an Intention to Compete

by Faegre Baker Daniels on

In the case of MPT Group Limited v Peel [2017] EWHC 1222 (Ch), the High Court examined whether departing employees were required to disclose their intention to compete after the expiry of their restrictive covenants. The...more

The Latest East Coast/West Coast Conflict: Massachusetts Courts Consider the Application of California Law in Non-Compete...

by Seyfarth Shaw LLP on

Hearkening back to the rivalry between the Boston Celtics and Los Angeles Lakers in the 1980s, Massachusetts courts (as well as others around the country) have increasingly been asked to analyze the application of California...more

Tectonic Shift Affecting Enforcement of Noncompetition Agreements Emanates from the 2017 Nevada Legislative Session and Passage of...

by Littler on

Nevada noncompetition law has historically had few seismic shifts, which changed in 2016 when the Nevada Supreme Court issued its opinion in Golden Road Motor Inn, Inc. v. Islam, 376 P.3d 151 (Nev. 2016). That case sent...more

Non-Competition Clauses: Enforceable or Just for Show?

by Field Law on

When can a non-competition clause actually stop someone from working? Or are these clauses just for show? Let's take a look at a couple of cases involving departing employees who find themselves in hot water with a former...more

Taking Stock in Blockchains

Corporate lawyers and software developers have been watching eagerly as the State of Delaware takes steps to enable Delaware corporations to issue shares of their stock as digital tokens. Instead of recording shares on paper...more

Employment News - June 2017 #2

by Hogan Lovells on

Keep it for later – European Court's Advocate General issues Opinion that the right to paid leave can be carried over if employer has not offered it - According to the preliminary Opinion of the European Court in The Sash...more

Reaffirming Rash – Replacement Value Applies to Cram Down Valuations

by Selman Breitman LLP on

Cram down reorganization, a fundamental concept in bankruptcy law, allows a debtor to retain possession and use of collateral while reducing the principal value of the secured debt to the present value of the collateral. ...more

Choice-of-Law and Choice-of-Forum May Depend on the Choice of Where to File and When: Multi-State Employers Continue to Face...

by Fisher Phillips on

Employers who operate in a multi-state environment should take note of a recent case out of the Sixth Circuit (which governs employers that operate in Kentucky, Michigan, Ohio, and Tennessee.) Stone Surgical, LLC v. Stryker...more

Keeping An Eye On Non-Compete Law

by Fox Rothschild LLP on

USA Today, New York Times, BNA, and several other news outlets have been reporting over the last few weeks about non-competition agreements and non-compete laws especially related to low-wage workers. There have been...more

Littler Global Guide - Norway - Q1 2017

by Littler on

New Statutes on Restrictive Covenants Become Effective January 1, 2017, for Contracts Existing Before January 1, 2016 - Enacted Legislation - New statutes on restrictive covenants, Chapter 14A in the Working...more

LeBron, Stephan and the Essence of Florida Non-Competes

by Burr & Forman on

As this blog post goes to press, the Cleveland Cavaliers and the Boston Celtics just began their series to determine which team will face the winner of the series between the Golden State Warriors and the San Antonio Spurs....more

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