Restrictive Covenants Non-Compete Agreements

News & Analysis as of

Nevada Employers: Time To Review Your Non-Competes

If you are using a noncompetition agreement in Nevada, you may want to consider reviewing that agreement. The Nevada Supreme Court recently held that state courts shall not modify – or “blue pencil” – non-compete agreements...more

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

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

An Argument for the Use of Stock Options with Forfeiture Clauses for Breach of Duty of Loyalty

Introduction Jimmy John’s In 2014, Emily Brunner (“Brunner”) and Caitlin Turowski (“Turowski”) filed a complaint in Illinois against the sandwich company, Jimmy John’s, and its franchise affiliates. The complaint was amended...more

Jimmy John's Settlement Cautions Employers Over Widespread Non-Compete Use

The Jimmy John’s sandwich chain recently settled state law claims in Illinois relating to its former requirement that hourly restaurant employees sign non-competition agreements that prohibit them from working for a competing...more

Forum Shoppers Beware (But Not in Alabama)!

Since non-compete law can vary drastically by state, many employers who operate in a multistate environment can benefit from utilizing forum-selection and choice-of-law clauses. These clauses are intended to ensure employers...more

Noncompetition Agreements—An Update

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

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

Did the White House’s “Call to Action” Get“Trumped”?

The White House, under the Obama Administration, recently issued a “Call to Action” to state legislators across the country for non-compete reform. The Call to Action was a culmination of a months-long investigation by the...more

Court Order to U-Haul: Haul Your Non-Compete Clauses Out of California

A California appellate court recently upheld a permanent injunction in Robinson v. U-Haul Company of California barring U-Haul from enforcing its non-compete covenants in California. U-Haul also was required to pay over...more

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

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

Indiana Court of Appeals Rules on Irreparable Harm, Laches, Extension Clauses, and More in Recent Restrictive Covenant Case

The Indiana Court of Appeals recently issued a restrictive covenant ruling addressing several significant issues. On November 30, 2016, in Hannum Wagle & Cline Engineering, Inc. v. American Consulting, Inc., the Indiana Court...more

Texas Court of Appeals Finds Noncompete Agreement Inapplicable to Former President’s Post-Termination Activities Due to the...

On October 27, 2016, the Fort Worth Court of Appeals affirmed a lower court’s order denying an application for temporary injunction seeking to enjoin Thomas Musgrave, the former president of Henry F. Coffeen III Management,...more

White House Calls for Restrictions to Curb Non-Compete Agreements

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

Federal Attack on Non-Competes Likely Another Casualty of Election

As our readers are aware, employers can expect that the Trump administration will usher in a plethora of changes in terms of federal employment law policy and enforcement. One particular area in which the new administration...more

Merger does not invalidate noncompete, nonsolicitation covenants

When corporate mergers and acquisitions take place, the parties frequently ask, “What is the effect on the acquired company’s contracts?” That was the issue in a case involving noncompetition and nonsolicitation covenants in...more

THANKSGIVING EDITION [FROM THE ARCHIVES]: Court Protects Quizno’s Franchise Turkey Trade Secrets

This Thanksgiving, Trade Secrets Watch is serving a delicious tale about protecting trade secrets in a franchising relationship. In 1994, Quizno’s entered into a franchise agreement with Robert Kampendahl, an...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

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

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

White House Issues Call to Action Urging States to Curb Employers' Use of Non-Compete Agreements

The White House has entered the fray regarding employer use of non-compete agreements. While the Obama administration's recently issued "State Call to Action on Non-Compete Agreements" does not change current law applicable...more

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

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...

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

Winds of Change: the NLRB Challenges Confidentiality Agreements and The Obama Administration’s “Call to Action” to Prohibit...

This year, the federal government is challenging contractual provisions that regularly appear in private employment agreements. Both the National Labor Relations Board (“NLRB”) and the Obama administration have challenged the...more

Non-Competition Restrictions

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

New York Attorney General Answers White House’s Call: Promises Bill to Curb Non-Compete Use

On the same day that the White House released its “State Call to Action on Non-Compete Agreements,” encouraging states to adopt best practice policies in the enforcement of non-compete agreements, New York State’s Attorney...more

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