News & Analysis as of

Restrictive Covenants Hiring & Firing

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

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

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

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

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

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

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

How Employment Agreements Can Protect An Employer's Intellectual Property And Defend Against Claims of Misappropriation

by McNair Law Firm, P.A. on

At approximately 4.6%, the current national unemployment rate is lower than it has been since before the 2008 recession. Generally speaking, this means that companies are hiring new employees. While hiring new employees is...more

Texas Appellate Court Holds Condition Subsequent in Noncompete Agreement Excused Former Employee’s Competitive Activities

by Seyfarth Shaw LLP on

A Texas Court of Appeals affirmed a summary judgment last month in favor of an ex-employee declaring that a noncompete clause in an asset purchase agreement and separate noncompete agreement did not bar him from competing...more

Noncompetition Agreements—An Update

by Zelle LLP on

Nearly two years ago, we wrote about noncompetition agreements in the wake of news that sandwich maker Jimmy John’s required low-level employees to agree to highly restrictive noncompetition clauses. Last week, Jimmy John’s...more

New Rules for Nevada Noncompetes

by Dickinson Wright on

Nevada Companies Must Review Their Noncompete Agreements - The Nevada Supreme Court recently has injected substantial uncertainty into any Nevada contract that contains a noncompete agreement, and companies need to...more

Employers Should Keep An Eye On the Non-Compete Reform Movement

by Akerman LLP - HR Defense on

Employers who require all employees to sign a form non-competition agreement regardless of the state in which the employee is located or the type of work performed by the employee should think twice before doing so. Recent...more

White House Calls for Restrictions to Curb Non-Compete Agreements

by Weintraub Tobin on

The White House has issued new information about its policy position on non-competes, including a call to action from President Obama to state and federal lawmakers to curb and limit non-compete agreements. ...more

Health Care E-Note - November 2016

by Burr & Forman on

You just formed your medical practice inAlabama, and you either chose a professional corporation (a “PC”) or an LLC. If you went with a PC, you got to choose between an “S” corporation (“S corp”) or a “C” corporation (“C...more

One of Obama Administration’s Final Mandates: Non-Competes Should Be The Exception, Not The Rule

With all the hubbub over the Presidential election, it would not be hard to overlook some of the Obama administration’s final moves. Recently, the White House issued a call to action to state legislators to ban non-compete...more

DOJ, FTC Announce Plans to Criminally Prosecute Employers That Enter into Wage-Fixing or No-Poaching Agreements

by Franczek Radelet P.C. on

In the fiercely competitive market for talent, human resources personnel and recruiters inevitably feel the competing pressures of offering compensation packages that are attractive to potential employees and keeping costs...more

White House Urges States to Reform Non-Competition Laws

by Hodgson Russ LLP on

On October 25, 2016, the White House published a State Call to Action on Non-Compete Agreements urging states to reform their non-competition laws. The call to action follows an earlier report from the White House which...more

Use of Non-Compete Agreements – Too Much of a Good Thing?

by Foley & Lardner LLP on

In case you missed the trend, several recent actions by the Obama administration have been aimed at enhancing employee rights. This pattern continued last week, when the White House issued a “Call to Action” and a report on...more

Antitrust Division Threatens Criminal Prosecution for Employment Practices: Antitrust Agencies Issue Joint Guidance on Employment...

by Pepper Hamilton LLP on

Even in the absence of an agreement to fix compensation, simply exchanging competitively sensitive information could serve as evidence of an implicit illegal agreement. On October 20, the Department of Justice (DOJ) and...more

Non-Competition Restrictions

by Hodgson Russ LLP on

On October 25, 2016, the White House published a “State Call to Action,” urging states to reform their noncompetition laws. The Call to Action follows an earlier report from the White House which concluded that noncompetition...more

The Employment Law Authority - November/December 2016

Court Upholds Employer’s Dreadlock Ban Finds Grooming Policy Did Not Violate Title VII of the Civil Rights Act - A federal appellate court recently held that an employer’s policy banning dreadlocks did not constitute...more

White House Speaks Out Against Non-Compete Agreements

by Saul Ewing LLP on

This week the White House issued a “call to action” regarding the inclusion of non-compete agreements in employee contracts for certain categories of workers. The White House is encouraging the passage of new laws by the...more

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