News & Analysis as of

Restrictive Covenants Scope and Duration of Restrictive Covenant

Brownstein Hyatt Farber Schreck

Aug. 10 Arrival: Colorado’s Non-compete Changes Are Effective

Effective today, Aug. 10, 2022, the Colorado Legislature’s significant changes to the state’s noncompetition and restrictive covenants statute become effective. The Restrictive Employments Agreement Act (“Act”) (HB 22-1317)...more

Fox Rothschild LLP

Florida Noncompete Agreements: Reasonable Duration Of Noncompete Restraint

Fox Rothschild LLP on

In order to be enforceable, must be reasonable in both the duration and scope. Duration refers to the length of time for which a noncompete agreement remains valid and enforceable. Scope, on the other hand, refers to the...more

Jackson Lewis P.C.

Oregon Amends Restrictive Covenant Statute To Further Limit Employers’ Use

Jackson Lewis P.C. on

Oregon law on permitted covenants not to compete has been amended to void nonconforming agreements and limit such agreements to employees making at least $100,533, among other changes...more

Lewitt Hackman

Franchisor 101: Taking the Red Pill on Non-Competes

Lewitt Hackman on

Franchisors and franchisees in California have long conducted themselves based on precedent that voids post-termination covenants against competition in a franchise agreement in California. Recently, a franchisor’s ability to...more

Faegre Drinker Biddle & Reath LLP

Delaware Chancery Court Declines to Blue-Pencil Overly Broad Noncompete Agreement; Casts Doubt on Choice of Law Provisions

A recent Delaware Chancery Court opinion has elucidated Delaware’s approach to judicially modifying, or “blue-penciling,” overly broad noncompete agreements and deferring to parties’ choice of law provisions. The case, FP UC...more

White & Case LLP

How long is too long? Construing non-compete restrictions in shareholders’ agreements

White & Case LLP on

Non-compete restrictions for key stakeholders are common in shareholders' agreements. In Guest Services Worldwide v Shelmerdine, the Court of Appeal upheld a 12-month post-departure restriction, rejecting arguments that...more

Jaburg Wilk

Are Non-Compete Provisions Enforceable in Arizona?

Jaburg Wilk on

A non-compete agreement, which is often referred to as a “restrictive covenant,” attempts to preclude an employee from working for a competitor or undertaking a new business venture that would compete with a former employer....more

Jaburg Wilk

Are Non-Solicitation Agreements Enforceable in Arizona?

Jaburg Wilk on

In Arizona, non-solicitation agreements may be enforceable if they are “reasonable.” This means employers may be able to prohibit an employee from soliciting other employees and customers/clients for a period of time. It is...more

Jaburg Wilk

Are Non-Compete Agreements Enforceable in Arizona?

Jaburg Wilk on

In Arizona, non-compete agreements may be enforceable if “reasonable.” In determining whether a non-compete is “reasonable,” courts evaluate several factors, none of which are controlling. The factors are....more

Jaburg Wilk

Employment Non-Competition Covenants- What Law Applies and Why The Answer To That Question Is So Important

Jaburg Wilk on

Many Arizona employees are often subject to non-compete agreements, or “covenants,” in which the employee agrees in advance to not compete with his or her employer for some time after leaving or being terminated by the...more

Holland & Knight LLP

Washington Law Limits Enforceability of Noncompete Clauses

Holland & Knight LLP on

Washington Gov. Jay Inslee recently signed House Bill 1450, which limits the enforceability of noncompete clauses in written and oral employment contracts between employers on one hand and employees and independent...more

Proskauer - Law and the Workplace

Non-Competes in Washington – Over-Reaching Could Cost Employers

Washington is the most recent state to adopt a law restricting the use of noncompetition agreements. The new law (HB 1450), which was signed by Governor Jay Inslee on May 8, 2019 and is scheduled to go into effect on January...more

Proskauer - Law and the Workplace

NYAG Continues Scrutiny of Overbroad Non-Compete Agreements

The New York State Office of the Attorney General (“NYAG”), working with the Illinois Attorney General, announced on September 18, 2018 that it had reached a settlement with WeWork Companies, Inc. (“WeWork”) regarding its use...more

Payne & Fears

Arizona Employers, What Exactly Does Your Non-Solicitation Agreement Prevent?

Payne & Fears on

Non-solicitation agreements are commonly used by employers to restrict former employees from soliciting clients following termination of the employment relationship. Courts throughout the country have different takes on the...more

Payne & Fears

Non-Compete and Trade Secret Law in Utah: What’s Changed, What Hasn’t Changed and How to Prepare for What’s Ahead

Payne & Fears on

The general rule in the United States has historically permitted non-competition agreements when they are reasonable in time and geographic scope. California has been the leading exception. Business and Professions Code...more

Jackson Lewis P.C.

What Does it Mean to “Modify” an Unenforceable Non-Competition Covenant Under Georgia’s Restrictive Covenants Act?

Jackson Lewis P.C. on

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

Seyfarth Shaw LLP

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

Seyfarth Shaw LLP on

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

Tarter Krinsky & Drogin LLP

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

Seyfarth Shaw LLP

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

Seyfarth Shaw LLP on

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

Ruder Ware

Agreement Prohibiting Solicitation of Employees by Former Employee may be Unenforceable

Ruder Ware on

A recent decision from the Wisconsin Court of Appeals has raised serious questions regarding non-solicitation agreements that are often included as part of an employment agreement or severance agreement. A non-solicitation...more

Foley & Lardner LLP

Wisconsin Court Strikes Clause Restricting Solicitation of Employees

Foley & Lardner LLP on

An engineer’s employment contract provision imposing a post-termination restriction against soliciting former co-workers to quit or to accept employment with a competitor, supplier, or customer is an unenforceable restraint...more

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