Restrictive Covenants

News & Analysis as of

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

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

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

"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

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

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?

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

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

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

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

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

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

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

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

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

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

Changes in regulatory landscape for corporate finance service providers

Investment firms engaged in the provision of corporate finance services to issuer clients are facing some significant changes to their regulatory landscape. With the entry of MiFID II into effect from 3 January 2018,...more

Are Non-Compete Agreements Right for Your Construction Company?

Non-compete agreements, or non-competition agreements, are contracts into which an employer and an employee enter that restricts the work the employee can perform for another company when the employee’s tenure at the employer...more

Top Developments/Headlines in Trade Secret, Computer Fraud, and Non-Compete Law in 2016

Continuing our annual tradition, we present the top developments/headlines for 2016 in trade secret, computer fraud, and non-compete law. Please join us for our first webinar of the New Year on February 2, 2017, at 12:00 p.m....more

Can Zoning Stop Property Owners from Renting?

Local governments may not rely on zoning rules to prohibit renters in multi-family housing developments. Many local governments (and residents) prefer property owners living in their communities rather than tenants. This...more

Game-Changer on Enforcement of New York Non-Compete Agreements

In a recent decision in Buchanan Capital Markets LLC v. DeLucca, an appellate court in Manhattan placed the enforceability of non-compete agreements in jeopardy for New York employers. Non-competition agreements generally are...more

EFFECTIVE TODAY: FAR Barring Certain Contractor Confidentiality Agreements

Today (January 19, 2017), the Employee Internal Confidentiality Agreements or Statements Federal Acquisition Regulation (the “Rule”) goes into effect. The Rule prohibits the government from contracting with companies that...more

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