News & Analysis as of

Restrictive Covenants

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

NYC Proposes Ban on Non-Competes

by Reed Smith on

New York City, which for years has been a trailblazer in employee-friendly workplace legislation, is at it again. Late last month, the NYC Council proposed a bill that would prohibit non-compete agreements for low-wage...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

North Carolina Business Court Decision Could Impact Enforceability of Many Non-Competition Covenants

A recent decision in the North Carolina Business Court could have significant implications on non-competition covenants in employment agreements that contain a very common automatic renewal term. The decision, if followed by...more

Do employees need to disclose intention to compete?

by Dentons on

All employment contracts have an implied term ensuring that employees will serve their employer with good faith and fidelity. This implied term covers numerous things, including prohibiting employees from competing with their...more

Non compete clauses and employees destined for greatness

by Dentons on

The case of Egon Zehnder Ltd v. Mary Caroline Tillman is another useful reminder to ensure that restrictive covenants are fit for purpose and, whilst in this case the covenants were upheld, it is also a reminder to ensure...more

Tips for Drafting Executive Employment Agreements – Tip #3 – Restrictive Covenants

by Bryan Cave on

This article continues with another tip for drafting executive employment agreements and the importance of consulting counsel. For every well drafted executive employment agreement in the business world, there seem to be...more

Illinois Employers Should Not Depend on Blue Penciling to Enforce Restrictive Covenants

by Seyfarth Shaw LLP on

Illinois is one of several jurisdictions that recognizes the authority of courts to blue pencil or judicially modify otherwise unenforceable restrictive covenants to be enforceable. See, e.g. Weitekamp v. Lane, 250 Ill. App....more

Recent Illinois Developments in Employee Non-Compete and Trade Secret Enforcement Actions: What Every Employer Should Know

by Franczek Radelet P.C. on

Over the past several months, state and federal courts in Illinois have issued several important decisions that will impact employers’ efforts to enforce post-employment restrictive covenants and protect their trade secrets....more

The Emergence of Third Party Preferred Equity as a Financing Device

by Proskauer Rose LLP on

Increasingly, buyout sponsors are turning to third party preferred equity as a financing tool for their transactions. Structured to be treated as equity for debt rating agencies, bank regulatory regimes and in-place debt...more

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

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