Restrictive Covenants Hiring & Firing

News & Analysis as of

Labor and Employment Group News: U.S. Treasury Issues Report on the Economic Effects of Non-compete Contracts

An office of Economic Policy Report published in March 2016, entitled "Non-Compete Contracts: Economic Effects and Policy Implications," estimates that 18% of all workers, or nearly 30 million people, are covered by...more

Getting Full Value out of Noncompete Agreements

Increasingly, companies are having employees sign noncompete and nonsolicitation agreements in order to protect the company, and its customer base, should the employee leave the company. These agreements are clearly...more

Utah Enacts Post-Employment Restrictions Act

A growing number of states are tightening conditions on restrictive covenants.  The start of 2016 saw Oregon and Alabama enact higher barriers to the enforcement of non-compete agreements in those states. As of March 22,...more

Employee Separation Agreements – A Refresher, Part Three

My first two posts on this topic have discussed provisions that must – under federal law, specifically the Older Workers Benefit Protection Act – be included in employee separation agreements if the employee’s release of...more

Utah Passes Bill Regulating Non-Competes

After heated debate between legislators and among the business community, the Utah state legislature has passed HB 251, the Post-Employment Restrictions Act. As passed, the Act prohibits “post-employment restrictive...more

Illinois Restrictive Covenants: Special Rules Apply To Non-Compete and Non-Solicit Agreements

All employers doing business in Illinois must be aware of a special rule regarding the enforceability of covenants not to compete, which may apply, depending on where their business is located. In Fifield v. Premier Dealer...more

10 Significant Physician Contracting Mistakes

1. Failure to Begin with the End in Mind. The most important provisions of your employment contract will be the provisions governing your termination rights, for two reasons. First, if the relationship goes well, chances are...more

Updates to Restrictive Covenants in Denmark Clear Final Legislative Hurdles

Denmark has recently adopted several new rules governing restrictive covenants in employment. Originally introduced as Bill 196 in April 2015 by Employment Minister Jorn Neergaard Larsen, implementation was delayed for...more

Pennsylvania Supreme Court Delivers Clear Message to Employers Regarding Restrictive Covenants in Employment Agreements

In a case of first impression, the Pennsylvania Supreme Court recently held that an employee may challenge an employment agreement containing a restrictive covenant for lack of consideration, even though the agreement...more

Pennsylvania Supreme Court Finds That UWOA Language Does Not Waive Right to Challenge Adequacy of Consideration for Restrictive...

On November 18, 2015, in a highly anticipated decision, the Pennsylvania Supreme Court held that employers could not use the language set forth in Pennsylvania’s Uniform Written Obligations Act (“UWOA”) to avoid providing...more

Pennsylvania Supreme Court Rules that Words Alone Not Sufficient to Support Non-Compete Covenant

Earlier this week, the Pennsylvania Supreme Court rejected a challenge to the longstanding requirement that post-employment restrictive covenants must be supported by actual consideration to be enforceable under Pennsylvania...more

NC Court of Appeals Finds $100 Adequate Consideration to Support Non-Compete

In North Carolina, an initial offer of employment serves as adequate legal consideration to support non-competition and non-solicitation restrictive covenants. However, once a person is already employed, the employer must pay...more

Eleventh Circuit Decision Weakens Injunctive Enforcement of Restrictive Covenants

Last month, in Transunion Risk and Alt. Data Sols., Inc., v. MacLachlan, the Eleventh Circuit held that the district court should have considered hardship to an employee when it enforced a restrictive covenant in an...more

5 Bad Hiring & Firing Ideas Every Startup Entrepreneur Should Avoid

So, you think you have the next greatest idea for a startup that will knock the socks off of the current big players in your space? We know you’re excited to spend endless nights and countless hours to get your company off...more

Nigeria: Part II

This article is the second in a series which provides an overview of the basics of employment law in Nigeria and will focus on laws governing employment terminations, including wage and hour, termination, restrictive...more

Federal Court Split on Consideration Needed to Enforce a Restrictive Covenant in Illinois Remains Unresolved

On July 14, 2015, the U.S. Court of Appeals for the Seventh Circuit decided Instant Technology, LLC v. DeFazio. The decision was widely expected to address the current split in the Northern District of Illinois on whether two...more

Post-Employment Covenants: Is an Inducement to Smile An Inducement to Cancel?

A recent Circuit Court case confirms that the term “non-inducement” means just that. In American Family Mutual Insurance Company v. Graham, the Eighth Circuit affirmed a jury verdict against an insurance agent who, the jury...more

Cracks in the Fifield Armor?: New Dissent Marks First Big Challenge to Illinois' Bright-Line Restrictive Covenant Rule

When continued employment is the sole consideration for a post-employment restrictive covenant (such as a noncompetition agreement), the Illinois Supreme Court requires that an employee be continually employed for a...more

No Fault Employment?

The divorce metaphor bears fruit yet again when it comes to the employment relationship. To this mix I add the concept of “no fault” divorce and the reasons employment ends. A “no fault” divorce permits a spouse to end a...more

Physician Estopped From Alleging FCA Violations in Contract He Previously Approved

Cooper v. Pottstown Hospital is another case where a dissatisfied party is attempting to use the federal Anti-Kickback Statute or the Stark Law in litigation arising out of the contracts to which they were willing parties at...more

Competing After Employment (Part 2)

A few weeks ago, Jawbone, a fitness tracking hardware and software maker, sued its arch-rival Fitbit, alleging that Fitbit lured its employees away to obtain access Jawbone’s confidential information and product plans. How...more

From Hiring To Firing: A Basic Guide To The Hong Kong Employment Law Life Cycle

Hiring - For many employers, the key to having a productive and high-performing workforce is recruiting the right people to start with. However, it is important for employers to be aware that even before an employee...more

From Hiring To Firing: A Basic Guide To The Singapore Employment Law Life Cycle

In Singapore, we are restricted for regulatory reasons (as are most international/foreign registered law firms) from practising local law. This means that if a matter needs advice on any Singapore law issues we will arrange...more

Employer's "No Re-Hire" Provision May Violate California's Non-Compete Laws

Pretty much everyone knows that California courts do not favor covenants not to compete. We even have our own state laws that address this very issue (Business & Professions Code section 16600). But what about provisions in...more

Proposed Wisconsin Legislation Would Make It Easier for Employers to Enforce Restrictive Covenants

The Wisconsin legislature may soon dramatically change the law that governs restrictive covenants, making them easier to enforce. On March 5, 2015, State Senator Paul Farrow (R-Pewaukee) introduced Senate Bill 69, a...more

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