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Employer Liability Issues Restrictive Covenants Appeals

Jenner & Block

Delaware Supreme Court Reaffirms Reluctance to Blue-Pencil Overbroad Restrictive Covenants in Sunder v. Jackson

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The Delaware Supreme Court’s decision in Sunder Energy, LLV v. Jackson, No. 455, 2023, 2024 Del. LEXIS 407 (December 10, 2024) reaffirmed the courts’ limited willingness to modify or “blue-pencil” overbroad restrictive...more

CDF Labor Law LLP

A No-Go for Employees’ Anti-Trust Claims Based on High-End No-Hire Agreements

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Recently, the United States Court of Appeals for the Second Circuit upheld the dismissal of a class action against defendants Saks Inc., Gucci, Prada, Loro Piana, Brunello Cucinelli and other luxury good manufacturers....more

CDF Labor Law LLP

FTC Appeals Injunction Against Final Rule Banning Non-Compete Employment Agreements

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Last Friday, the Federal Trade Commission (“FTC”) gave notice to appeal Judge Brown’s nationwide bar on the FTC’s final rule creating a Non-Compete Ban or enforcement of the rule in the case of Ryan LLC v. Federal Trade...more

Troutman Pepper Locke

FTC Appeals Texas Court’s Decision to Set Aside the Noncompete Ban

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The Federal Trade Commission (FTC) has filed a notice of appeal of the Northern District of Texas’s decision granting plaintiffs’ summary judgment motion and “setting aside” the agency’s rule banning nearly all employee...more

Seyfarth Shaw LLP

The Saga’s Not Over – FTC Appeals Florida Court’s Stay of Non-Compete Rule

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Just over a month ago, employers throughout the United States breathed a sigh of relief after Judge Ada Brown in the Northern District of Texas issued a summary judgment ruling in the Ryan v. FTC litigation setting aside the...more

Quarles & Brady LLP

Texas Federal Judge Strikes Down FTC Non-Compete Ban

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Judge Ada Brown of the U.S. District Court for the Northern District of Texas on Tuesday struck down the Federal Trade Commission’s (FTC) pending ban on non-compete covenants, concluding that the issuance of the FTC’s Rule...more

Proskauer Rose LLP

Future Not Looking Bright For California Employee Nonsolicits

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On Jan. 1, new legislation aimed at curbing the use of unenforceable noncompete agreements took effect in California. The new laws, which impose potentially harsh consequences on employers for requiring employees to sign...more

Seward & Kissel LLP

Employment Litigation Roundup: December 2023

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Delaware court declines to enforce restrictive covenants in LLC agreement but grants interlocutory appeal. In Sunder Energy v. Jackson, et al., a company, Sunder, sued a former employee, Jackson, for breaching a...more

Littler

Ontario, Canada Appeal Court Decides Non-competition Clause in Employment Agreement Governed by Common Law is Unenforceable

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In M & P Drug Mart Inc. v. Norton, 2022 ONCA 398, the Court of Appeal for Ontario (OCA) dismissed an employer’s appeal of an application judge’s decision that a non-competition clause in an employment agreement governed by...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

First Circuit Rules on Post-employment Restrictions as COVID-19 Restrictions Ease and Employees Return to Work

As employers reopen their businesses following closures or reductions in operations required during the COVID-19 pandemic, many are grappling with the fraught and complex task of bringing laid-off or furloughed employees back...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Massachusetts High Court Clarifies Standards for Judicial Review of Anti-Raiding Provisions in Restrictive Covenants

The Massachusetts Supreme Judicial Court (SJC), the Commonwealth’s highest court, recently clarified the standards applicable to analyzing nonsolicitation and anti-raid restrictive covenants following the sale of a business -...more

Seyfarth Shaw LLP

Supreme Court of Kentucky Rules That Firms May Require Lawyers to Sign Non-Solicitation Agreements That Exempt Legal Work

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A law firm can terminate an at-will lawyer who refuses to sign an agreement prohibiting them from soliciting the firm’s customers or clients following cessation of employment, according to the Supreme Court of Kentucky. In...more

Parker Poe Adams & Bernstein LLP

North Carolina Courts Defeat Another ‘Overbroad' Noncompete

In recent years, North Carolina courts have become increasingly resistant to enforcing noncompetition and non-solicitation restrictions they view as insufficiently narrowed to the specific competitive threat presented by the...more

Hahn Loeser & Parks LLP

AMN Healthcare’s impact on the enforceability of non-solicitation provisions in California raises two new unanswered questions

California Employee mobility and the right to compete are sacrosanct in California, and have been since its Legislature enacted section 16600 of the California Business and Professions Code, which voids “every contract by...more

Parker Poe Adams & Bernstein LLP

N.C. Court of Appeals Rejects Customer Non-Solicitation Restriction

When we talk with clients about post-employment “noncompete” agreements, this term actually encompasses a number of different restrictions. In addition to provisions that restrict the employee from working for a competitor...more

Littler

Colorado Court Decides Issue of First Impression on Restrictive Covenants

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The Colorado Court of Appeals recently decided an issue of first impression regarding noncompetition and nonsolicitation agreements. The decision in 23 LTD v. Herman highlights an important consideration for Colorado...more

Littler

UK Supreme Court Revises Test for Evaluating Post-termination Restrictions

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To much fanfare and the great excitement of many employment lawyers, the UK Supreme Court recently delivered its first judgment on employment post-termination restrictions for a century, in Tillman v. Egon Zehnder. The court...more

Parker Poe Adams & Bernstein LLP

N.C. Court of Appeals Voids Noncompete With Specialized Physician

In addition to the typical reasonableness argument and other defenses against the enforcement of employment noncompetition covenants, in some cases courts will invalidate these agreements based on a public policy argument....more

FordHarrison

Non-Compete News: Georgia Court of Appeals Clarifies Definition of "Key Employee" Under the Georgia Restrictive Covenants Act

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The Georgia Restrictive Covenants Act (O.C.G.A. § 13-8-50 et seq.) governs non-compete agreements in Georgia entered into after May 2011 and sets forth that such agreements can be used only with respect to certain employees. ...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Overbroad Geographic Restriction Dooms Covenant Not to Compete

Texas law allows for the enforcement of covenants not to compete that impose reasonable restrictions on competition. Texas courts frequently enforce geographic and other restrictions on a former employee’s ability to compete...more

Skadden, Arps, Slate, Meagher & Flom LLP

Employment Flash - January 2019

This edition of Employment Flash looks at developments in labor and employment law, including with respect to restrictive covenants; new state anti-harassment laws; minimum wage increases; age bias claims; and the employee...more

Fisher Phillips

Web Exclusive: August 2018: The Top 15 Labor And Employment Law Stories

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It’s hard to keep up with all the recent changes to labor and employment law. While the law always seems to evolve at a rapid pace, there have been an unprecedented number of changes for the past few years—and this past month...more

Flaster Greenberg PC

Law @ Work Employer Newsletter - The Savvy Employer’s Guide to Legal Developments & Quirks that Affect the Workplace

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Welcome to the third edition of the Law @ Work Employer Newsletter. For those of you who read the Law @ Work blog, you know that the blog offers an in-depth analysis of important legal developments. This Newsletter fills in...more

Fisher Phillips

Web Exclusive - April 2018: The Top 19 Labor And Employment Law Stories

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It’s hard to keep up with all the recent changes to labor and employment law. While the law always seems to evolve at a rapid pace, there were an unprecedented number of changes all through 2017. And if the first four months...more

FordHarrison

Non-Compete News: Georgia Court of Appeals Confirms Lack of Geographic or Material Contact Limitation Does Not Invalidate...

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Georgia’s recent Restrictive Covenant Act, enacted in 2011, does not directly address non-solicitation of employees a/k/a non-recruitment covenants, thereby leaving such provisions subject to the principles developed by...more

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