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JONES DAY PRESENTS®: Employer Options in a Non-Noncompete World
When a commissioned salesperson leaves employment, the most common dispute we encounter involves that employee’s entitlement to payment of commissions after their departure date. ...more
Confidentiality is a key consideration in any commercial endeavour. To retain a competitive edge in the market, a business will often do its utmost to maintain the confidentiality of client information and business...more
Against a growing trend of legislation and broader efforts seeking to limit or eliminate post-employment noncompetition restrictions, recent Massachusetts and First Circuit decisions in a dispute between DraftKings and one of...more
The recent case of Yang Zhizhong v. Nomura International (Hong Kong) Limited helpfully clarifies the applicability of Implied Term of Trust and Confidence, the Braganza duty and the Anti-avoidance Term in the context of...more
AT A GLANCE - The only post-employment restrictive covenant explicitly stipulated under the People’s Republic of China’s (PRC) labour laws is the non-compete restrictive covenant. The employer and the employee may agree on...more
Recent decisions and settlements from the National Labor Relations Board should serve as a not-so-friendly reminder to ensure that your severance agreements and employee handbooks do not run afoul of the National Labor...more
In Manulife Financial Asia Limited and Kenneth Joseph Rappold & Others [2024] HKCFI 989 (date of decision: 5 April 2024), the Hong Kong High Court refused a company’s application to enforce a 12-month non-compete clause...more
On May 7, 2024, the Federal Trade Commission (FTC) issued a Final Rule that renders invalid non-compete clauses in standard employment agreements. 16 C.F.R. § 910. Although some limited exceptions apply, this new regulation...more
2023 was a banner year for trade secrets, non-competes, and other restrictive covenants. Employee non-competes continued to garner attention at the federal agency level, drawing commentary and action from the Federal Trade...more
As previously highlighted by Benesch, California strengthened its long-standing prohibition on non-competition agreements on January 1, 2024. In addition, and also as previously highlighted by Benesch, one of these...more
In a bombshell ruling last year that upended longstanding Delaware law, the Delaware Chancery Court ruled in Ainslie v. Cantor Fitzgerald, L.P., 2023 WL 106924 (Del. Ch. Jan. 4, 2023), that forfeiture-for-competition clauses,...more
We have become involved in an increasing number of disputes between companies and their former employees over ownership and use of personal social media accounts. In a typical situation, the employee will use their personal...more
With the New Year in full swing, it is important for New York employers to be aware of recent changes to New York’s statutes relating to severance agreements. On November 17, 2023, New York enacted S4516, which provides...more
While everyone is undoubtedly aware that an employee is not lawfully permitted to steal from his/her employer, the next logical question concerns what specifically are an employee’s legal obligations during their course of...more
Frontline Techs. Parent, LLC v. Murphy, C.A. No. 2023-0546-LWW (Del. Ch. Aug. 23, 2023) - This non-compete decision reminds drafters to pay careful attention to scope and definitions, in particular language covering the...more
Severance agreements have long been utilized as a valuable tool for providing employers with protections from the post-employment conduct or claims of former employees. Severance agreements often include a wide range of...more
In a recent decision, a Georgia appellate panel held that an employee nonsolicitation covenant that limits what parties can do following the end of a business relationship must have an explicit geographic limitation to be...more
In Vicarious Surgical Inc. v. Beth Tragakis, Judge Salinger, sitting in the Massachusetts Business Litigation Session, dismissed a robotics company’s Chapter 93A claim for lack of any allegations that the robotics company was...more
The General Counsel of the National Labor Relations Board (NLRB), Jennifer A. Abruzzo, issued guidance on March 22, 2023, about the NLRB’s McLaren Macomb, 372 NLRB No. 58, decision from February 21, 2023, which reinstated a...more
By now, most compliance professionals are aware of the Federal Trade Commission (FTC) press release from January 5, which announced its proposed rule to ban noncompete clauses. The FTC proposed adding a new subchapter J,...more
On March 22, 2023, NLRB General Counsel Jennifer Abruzzo issued Memorandum GC 23-05 (the “Memorandum”) offering guidance to Regional Directors for interpreting the National Labor Relations Board’s (the “NLRB” and the “Board”)...more
Employers terminating employees frequently offer severance payments in exchange for the employees’ entry into a separation agreement. Generally these separation agreements include a release of claims along with other...more
When we are asked by a client to review their form employee non-competition agreement, we often see companies using documents found on the internet that were clearly written for use in states other than North Carolina. Last...more
In the McLaren Macomb opinion issued last month, 372 NLRB No. 58 (2023), the National Labor Relations Board (“NLRB”) landed a healthy punch chipping away at what had previously been considered standard severance provisions in...more
The National Labor Relations Board’s (the “Board”) decision in McLaren Macomb, significantly changes what employers are allowed to include in a departing employees’ severance/separation agreements or packages. The Board’s...more