Restrictive Covenants Non-Compete Agreements

News & Analysis as of

Utah Passes New Law Placing Restrictions on Noncompetition Agreements

On March 9th, 2016, the Utah Legislature passed a bill, which the governor signed, substantially limiting an employer's ability to use noncompetition covenants to prevent former employees from competing against them. The new...more

Non-Compete Restriction Held To Be Unenforceable

In Bartholomews Agri Food Ltd v Thornton [2016] EWHC 648 (QB), the High Court considered whether a non-compete post-termination restriction was an unlawful restraint of trade. Bartholomews Agri Food Ltd (Bartholomews)...more

Medical Non-Competes in Rhode Island: No Clean Bill of Health

The Rhode Island Superior Court recently refused to enforce a non-compete agreement against a local physician because it was against the public interest. Medicine and Long Term Care Associates, LLC v. Khurshid, PC 2015-0458,...more

Rhode Island Trial Court Decision Could Spell Trouble for Employers Seeking to Enforce Restrictive Covenants Against Healthcare...

One of an employer’s first steps in a suit against a former employee to enforce a restrictive covenant is to seek a preliminary injunction to prevent the employee from continuing to violate his or her contractual obligations....more

Trade Secrets Directive

The protection afforded to trade secrets is disparate across the EU. In order to protect trade secrets as potential drivers for economic growth and jobs and to create a level-playing field within Europe, the European...more

New Utah law limits use of noncompetition agreements

Many employers are confronted by the problem of former employees using company information or relationships they had access to or developed during their employment. Employers have sought protection by having employees agree...more

Utah and Idaho Take Contrasting Approaches to Non-Compete Reform

In the last few weeks, Utah and Idaho have each passed bills changing the landscape of non-compete enforceability in strikingly different ways. Utah’s law places further limitations on the use of non-competes. In contrast,...more

North Carolina Supreme Court Re-Affirms Classic View of "Blue-Pencil Doctrine" for Non-Competition Agreements

The North Carolina Supreme Court, in a long-awaited decision, reaffirmed the Court's historic view on the "blue-pencil" doctrine in North Carolina as it relates to non-competition agreements. In Beverage Systems Of The...more

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

North Carolina Courts Are Forbidden To “Blue Pencil” An Unenforceable Non-Compete

Reversing a 2-1 decision of the North Carolina Court of Appeals, the state’s Supreme Court held unanimously that an assets purchase-and-sale contract containing an unreasonable territorial non-competition restriction is...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

New Utah Law Limits Restrictive Covenants to a One-Year Period

On March 9, 2016, Utah enacted the Post-Employment Restrictions Amendments, which limits restrictive covenants to a one-year time period from termination. Any restrictive covenant that is entered into on or after May 10,...more

Question #273: Crafting a Concrete Non-Compete

Question: Our company uses non-compete and non-solicit agreements that bar former employees from having contact with any client of our company after they leave. One former employee who recently left is now claiming the...more

North Carolina Supreme Court Reaffirms Strict "Blue Pencil" Rule for Non-Competes

When it comes to modifying the terms of a non-competition agreement deemed overbroad or unreasonable, North Carolina has long held to the blue pencil rule. Unlike many other states, North Carolina judges do not have the...more

What Utah Employers Need to Know About H.B. 251: Post-Employment Restrictions Act

On March 22, 2016, the Governor of Utah signed into law H.B. 251, the Post-Employment Restrictions Act. This was one of the most controversial bills considered this last session, and it underwent many changes through the...more

Utah Governor Signs Law Restricting Post-Termination Noncompete Agreements

On March 22, 2016, Utah Governor Gary Herbert signed into law the Post-Employment Restrictions Act (H.B. 251), which limits the duration of post-employment noncompete agreements between employers and employees to a maximum of...more

How does Utah’s New Noncompete Law Affect You?

Utah employers should update their form noncompete agreements to ensure they comply with the state’s new Post-Employment Restrictions Act. Employers of all sizes are subject to the Act, which was adopted by the Utah...more

Supreme Court Upholds North Carolina’s Blue Pencil Doctrine Impacting Non-Competes

On March 18, 2016, the North Carolina Supreme Court reasserted the state’s strict blue pencil doctrine by reversing the Court of Appeals in Beverage Systems of the Carolinas, LLC v. Associated Beverage Repair, LLC, et al....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

Massachusetts Legislature Takes Up Noncompete Reform . . . Again

Another year, another attempt at noncompete reform in Massachusetts. According to the Boston Globe, Massachusetts House Speaker Robert DeLeo announced that lawmakers would unveil a bill limiting the use of noncompete...more

Competition law and commercial property leases

On 26 November 2015, the Court of Justice of the European Union (CJEU) handed down its judgment in Case C-345/14 Maxima Latvija on the application of competition law to a non-compete clause in a commercial property lease. The...more

Bill to Regulate Non-Compete Agreements Continues to Move through Utah Legislature

We recently posted about a bill in the Utah State legislature, HB 251, which would have essentially prohibited non-competition agreements in Utah. While awaiting debate and final vote in the Utah House, the bill was amended...more

Five Easy Tips for Improving Your Company’s Non-Compete and Confidentiality Agreements and Related Practices Now

As January quickly passed by and new projects increase by the day, there is still a golden opportunity to capitalize on some low-hanging fruit to immediately improve your company’s practices and add immediate value to your...more

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