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Restrictive Covenants

News & Analysis as of May 24, 2013

Pepper Hamilton LLP

New Jersey Bill Could Put An End To The Use Of Non-Compete Agreements As We Know It

by Kali Wellington-James | Pepper Hamilton LLP on 5/22/2013

Last month, the New Jersey Legislature introduced a bill that could drastically limit the enforceability of non-compete, non-solicitation, and non-disclosure agreements that New Jersey employers routinely enter into with...more

Clingen Callow & McLean, LLC

You Can't Reverse Blue-Pencil a Non-Compete

by Kenneth Vanko | Clingen Callow & McLean, LLC on 5/14/2013

By now, I hope readers of this blog would be aware that the title of this post simply reinforces the obvious....more

Saul Ewing LLP

Bill introduced in New Jersey Legislature would invalidate restrictive covenants for individuals collecting unemployment benefits

by Ruth A. Rauls | Saul Ewing LLP on 5/9/2013

Currently pending in the New Jersey State Legislature is a bill that, if passed, would invalidate any covenant, contract or agreement not to compete, not to disclose or not to solicit, entered into by any individual with the...more

Clingen Callow & McLean, LLC

Supreme Court of Georgia Rejects Independent Claim for "Inevitable Disclosure"

by Kenneth Vanko | Clingen Callow & McLean, LLC on 5/8/2013

The "inevitable disclosure" doctrine is one of the most discussed, controversial topics in unfair competition law. The commentary among academics and bloggers reminds me of the ongoing debate over the proper scope of the...more

K&L Gates LLP

Non-Party Employer Made to Pay Costs in Restraint Litigation

by Bryan Belling, Matthew Parker | K&L Gates LLP on 5/8/2013

On 1 May 2013, the Supreme Court of New South Wales handed down judgment in HRX Pty Ltd v Scott [2013] NSWSC 451 (HRX v Scott). In doing so, the Court sent a clear message to employers about the risks associated with...more

Scott & Scott, LLP

Are End-User Agreements for Tangible Products on the Horizon?

by Scott & Scott, LLP on 5/8/2013

Scott & Scott, LLP attorney, Christopher Barnett, asks whether Google's Glass restrictive Terms of Service could be imitated by other consumer product manufacturers....more

Davis Wright Tremaine LLP

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

by Ron Cai, Victoria Ding | 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

Ballard Spahr LLP

NJ Lawmakers: Invalidating Restrictive Covenants Will Assist the Unemployed

by Laura A. Kowal, Steven Suflas | Ballard Spahr LLP on 4/26/2013

Citing the state’s jobless rate, three New Jersey state assemblymen are challenging the longstanding employer practice of restricting the post-employment activities of employees who are terminated or resign. On April 4, 2013,...more

Burr & Forman

Florida Court Reverses Preliminary Injunction On Restrictive Covenant

by Peter C. Vilmos | Burr & Forman on 4/24/2013

If you have followed this blog, then you likely already know that restrictive covenants are legal and enforceable in Florida. You should also know that – although enforceable – restrictive covenants are strictly construed...more

Downs Rachlin Martin PLLC

Employers Just Get No Satisfaction: NH Enacts Law Restricting Use Of Non-Compete Agreements

by Downs Rachlin Martin PLLC on 4/23/2013

Employers in New Hampshire now must comply with further restrictions on their ability to enforce non-compete and anti-piracy agreements. Venturing further into the already murky area of the enforceability of such agreements,...more

FordHarrison

Legal Alert: New Jersey Bill Would Limit Enforceability Of Post-Employment Covenants

by Joanna Rich, Salvador Simao | FordHarrison on 4/18/2013

New Jersey legislators have proposed making a variety of post-employment restrictive covenants unenforceable where the employee is eligible for unemployment benefits. Many high-level sales employees and employees with...more

Clingen Callow & McLean, LLC

Settlements (Part 3 of 3): Dealing With a Defendant's Bankruptcy in Non-Compete Litigation

by Kenneth Vanko | Clingen Callow & McLean, LLC on 4/17/2013

This is largely a plaintiff-centric column, offering some practical points to consider when assessing the risk of bankruptcy in connection with non-compete (or other competition) litigation. Though many non-compete suits...more

Ropes & Gray LLP

The Ropes Recap: Mergers & Acquisitions Law News

In this issue: *News from the Courts - Refinement re “Don’t Ask, Don’t Waive” Standstill Agreements - Proposed Delaware “Medium-Form Merger” To Create an Alternative to Top-Up Options - Court Rejects...more

Akerman Senterfitt

Think Your Company's Confidential Information Is Safe? Think Again!

by Christopher Duke | Akerman Senterfitt on 4/10/2013

Password encrypted computers, locked file drawers, swipe cards allowing for restricted access. These are all measures taken by businesses to protect their confidential business information and trade secrets. While these steps...more

Pullman & Comley, LLC

Appellate Notes: Week of March 18, 2013

by Edward McCreery III | Pullman & Comley, LLC on 3/22/2013

In This Issue: - SC18921- Redding Life Care, Inc. v. Redding - SC18846- Bauer v. Bauer - SC18947- State v. Charlotte Hungerford Hospital - AC34075- Carrillo v. Goldberg - AC33764- Alarmax...more

Butler, Snow, O'Mara, Stevens and Cannada,...

The Parameters of "Solicitation" in an Era of Non-Solicitation Covenants

by David Johnson | Butler, Snow, O'Mara, Stevens and Cannada,... on 2/27/2013

Originally published in the ABA Journal of Labor & Employment Law - Volume 28, Number 1, Fall 2012. I. Introduction - "I didn't solicit them; they approached me." That is a common defense invoked by someone accused...more

Barry Kurtz

Focused on Franchise Law - February 2013

by Barry Kurtz on 2/26/2013

In This Issue: - Franchisor 101: Are Covenants Not-To-Compete Dischargeable In Bankruptcy? - Franchisee 101: Aloha-Distributorships Are Not Franchises - Mark Melton Has Become Of Counsel To The Firm...more

Allen Matkins Leck Gamble Mallory & Natsis...

Would You Be Annoyed If Your Neighbor Installs A Wind Turbine?

by Keith Paul Bishop | Allen Matkins Leck Gamble Mallory & Natsis... on 2/15/2013

In 2009, the Nevada legislature enacted a statute intended to remove private barriers to landowners’ harnessing of wind energy...more

Dentons

"Restrictive Covenants - The Final Chapter (For Now) - Part 2"

by Mark Woltersdorf | Dentons on 2/11/2013

Originally published in CCH Canadian Ltd, February 7. 2013. In This Issue: - Introduction - Subsection 56.4(7)— The “Realization of Goodwill Amount” and “Disposition of Property” Exceptions - Areas of...more

Field Law

A Win for Employers: Greater Obligations on Some Departing Employees

by Joel Fairbrother | Field Law on 2/8/2013

SYNOPSIS - Evans v The Sports Corporation, 2013 ABCA 14 is the latest case from the Alberta Court of Appeal dealing with the obligations of departing employees to their former employers. Evans is important because it...more

Osler, Hoskin & Harcourt LLP

Non-Compete / Non-Solicit Covenants: Ontario Court of Appeal Provides Guidance on Requirements for Enforceability

by Gerard Kennedy, David Stamp | Osler, Hoskin & Harcourt LLP on 2/7/2013

The Ontario Court of Appeal’s February 5, 2013 decision in Martin v. ConCreate USL Limited Partnership, 2013 ONCA 72 analyzes the non-competition and non-solicitation covenants applying to a former company President (Martin)....more

Burr & Forman

Florida Appellate Court Says: “Independent Contractor” Still An Employee For Purposes Of Enforcing Non-Compete Agreement

by Peter C. Vilmos | Burr & Forman on 2/6/2013

You hire an employee and pay her a salary. In order to earn more money at your business, she voluntarily chooses to transition to “independent contractor” status. Question: Does that transition trigger the non-compete...more

Dentons

Tax Topics: Restrictive Covenants — The Final Chapter (For Now)— Part I

by Mark Woltersdorf | Dentons on 1/22/2013

This article discusses proposed legislation dealing with the taxation of restrictive covenants. Due to its length, it is divided into two parts. Part I addresses the history, basic inclusion rules, tax treatment to the...more

Dechert LLP

International Employment Law Review - January 2013, Issue 3

by Samer Amro, Alan Berkowitz, Thomas Johnson, Phillippe Thomas, Charles Wynn-Evans | Dechert LLP on 1/21/2013

Welcome to the latest edition of the International Employment Law Review, presented by Dechert’s Labor and Employment Practice. In this issue, we examine the most significant employment law developments of the year thus far...more

Jackson Walker

How To Represent Prospective Franchisees And Franchisors

by Mark Miller | Jackson Walker on 1/12/2013

FRANCHISING PRIMER - I. INTRODUCTION - A. In General Franchising is a method of distribution that combines the advantages of a central specialized system with the capital and micro-management of local independent...more

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