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Delaware Supreme Court Upholds Forfeiture-for-Competition Provision in Limited Partnership Agreement

Stemming a tide of Delaware decisions closely scrutinizing and refusing to enforce non-compete agreements, Delaware’s Supreme Court held that forfeiture-for-competition provisions arising out of a Delaware limited partnership...more

California Enacts Legislation to Support State’s Prohibitions on Employee Restrictive Covenants

On September 1, 2023, Governor Newsom signed Senate Bill (SB) 699, which buttresses current state law that voids contracts that restrain an employee from engaging in a lawful profession, trade, or business of any kind....more

Finding COVID-19 Layoff Not Furlough, Court Denies Motion To Restrain Competition

A federal district court has denied a motion to temporarily restrain an employee laid off due to the COVID-19 pandemic from competing against his former employer. Schuylkill Valley Sports, Inc. v. Corporate Images Co., No....more

Court Rejects Delaware Choice Of Law Provision In Refusing To Enforce Customer Non-Solicitation Covenant Against California...

On August 26, 2019, the Delaware Chancery Court invalidated a California employee’s customer and employee non-solicitation covenant on the grounds that it violated California law. In doing so, the Court rejected the plaintiff...more

Delaware Court Grapples With Enforcement Of Choice Of Law Provisions In Restrictive Covenant Agreements

When implementing restrictive covenant agreements in their workforces, companies often grapple with how best to handle the wide variation in the law from one state to the other. One solution is to include a choice of law...more

Utah And Idaho Enact Employee-Friendly Amendments To Non-Compete Legislation

In the past week, two states have made modifications to their respective non-compete laws. On March 27, 2018, Utah imposed special restrictions on the use of non-compete agreements in the broadcasting industry. One day...more

Wisconsin Court Finds Anti-Poaching Agreements to be Unenforceable

Analyzing an anti-poaching agreement as a non-compete agreement, a Wisconsin Court of Appeals has confirmed that a former employee’s agreement not to solicit other employees may be void and unenforceable if it is too broad....more

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