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Employer Liability Issues Restrictive Covenants Contract Terms

Williams Mullen

New Amendment Further Restricts Non-Competes in Virginia

Williams Mullen on

Beginning on July 1, 2025, Virginia’s existing non-compete statute, Va. Code § 40.1-28.7:8, will be expanded to prohibit post-employment non-compete agreements and certain non-solicitation covenants with any non-exempt...more

Jenner & Block

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

Jenner & Block on

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

Holland & Hart - Employers' Lawyers

Wyoming Legislature Takes a Bite Out of Covenants Not to Compete

Brad Cave by Brad Cave Governor Gordon signed a bill this week to significantly narrow the enforceability of covenants not to compete under Wyoming law.  While the new law leaves Wyoming businesses with a few options to...more

Hendershot Cowart P.C.

Legal Alternatives to Breaking a Non-Compete Agreement in Texas

Hendershot Cowart P.C. on

Many employees feel trapped by non-compete agreements, but there are legal ways to handle these restrictive employment agreements. Before risking legal action by breaking your agreement, consider these alternatives....more

Seyfarth Shaw LLP

2024 Trade Secrets Webinar Series Recap: Key Takeaways and Access to Recordings

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In 2024, Seyfarth’s Trade Secrets, Computer Fraud & Non-Compete practice group presented a series of dynamic and insightful CLE webinars, addressing pivotal challenges confronting businesses head-on. ...more

Morris James LLP

Delaware Supreme Court Upholds Court of Chancery’s Refusal to Blue Pencil an Unreasonable Covenant Not to Compete

Morris James LLP on

In Sunder Energy v. Jackson, No. 455, 2023 (Del. Supr., December 10, 2024), the Delaware Supreme Court upheld the Delaware Court of Chancery’s decision not to enjoin a former employer and member of a Delaware LLC from...more

BakerHostetler

Adding Injury to Insult: The NLRB’S General Counsel Lays Out Expanded Remedies For Unlawful Noncompete and Stay-or-Pay Agreements

BakerHostetler on

We previously reported on a May 2023 memorandum issued by the general counsel of the National Labor Relations Board (NLRB or Board), Jennifer A. Abruzzo, stating her view that “the proffer, maintenance, and enforcement” of...more

Morgan Lewis

NLRB General Counsel Expands Crackdown on Non-Competes with New Focus on ‘Stay-or-Pay’ Agreements

Morgan Lewis on

National Labor Relations Board (NLRB) General Counsel Jennifer Abruzzo released GC Memo 25-01 on October 7, 2024 further urging the Board to find non-compete agreements, particularly “stay-or-pay” practices, unlawful and...more

Hinshaw & Culbertson - Employment Law...

Impact for Employers: The NLRB General Counsel Doubles Down on Restrictive Covenants and Stay-or-Pay Provisions

The General Counsel of the National Labor Relations Board ("NLRB") issued Memorandum GC 25-01 on October 7, 2024, which establishes her intent to "urge the Board not only to find certain non-compete provisions unlawful, but...more

Brooks Pierce

NLRB General Counsel Doubles-Down on Non-Compete Agreement—and Takes Aim at “Stay-or-Pay” Provisions

Brooks Pierce on

On October 7, 2024, the General Counsel for the National Labor Relations Board (“NLRB”) issued a memorandum offering her perspective on damages employers may face when enforcing allegedly unlawful non-compete agreements, and...more

Parker Poe Adams & Bernstein LLP

NLRB Memo Outlines Stricter Enforcement of Noncompetes and 'Stay-or-Pay' Provisions

The National Labor Relations Board (NLRB) General Counsel Jennifer Abruzzo issued a memorandum this week titled "Remedying the Harmful Effects of Non-Compete and 'Stay-or-Pay' Provisions that Violate the National Labor...more

Steptoe & Johnson PLLC

NLRB: Use of Non-Compete and "Stay-or-Pay" Clauses May Trigger Significant Monetary Consequences for Employers

Steptoe & Johnson PLLC on

On October 7, National Labor Relations Board (NLRB) General Counsel Jennifer A. Abruzzo issued Memorandum GC 25-01, reinforcing and expanding previous positions on how certain restrictive covenants may violate the National...more

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

Three Key Considerations in Crafting Effective Multistate Separation Agreements

One of the main reasons for a separation agreement with an employee is to obtain an effective release of claims against the employer. However, ensuring release agreements are effective and enforceable is becoming increasingly...more

Franczek P.C.

FTC Ban on Non-Competes Is Blocked — For Now

Franczek P.C. on

Back in April 2024, the Federal Trade Commission (FTC) issued a final rule that would have banned non-compete agreements nationwide as of September 4, 2024. (You can read our alert on the FTC’s final rule here.) However, on...more

Seyfarth Shaw LLP

Georgia Supreme Court Reverses Lower Court Rulings and Holds Non-Recruitment Provisions do not Need to Contain Explicit Geographic...

Seyfarth Shaw LLP on

Jimmy Buffett once eloquently said that “without geography, you’re nowhere.”  But how does that insight apply to restrictive covenants that lack explicit geographic limitations in Georgia? While Jimmy never got to find out,...more

Poyner Spruill LLP

FTC’s Non-Compete Ban Is On Hold, For Now

Poyner Spruill LLP on

Earlier this year, we wrote about the Federal Trade Commission (FTC) enacting a final rule to ban most all forms of non-compete agreements between employers and employees in the United States (available here).  The ban was...more

Epstein Becker & Green

Continued Employment May Constitute Sufficient Consideration for Noncompete Agreements in Connecticut, but Uncertainty Remains

The Connecticut Supreme Court recently held that continued employment may constitute sufficient consideration for noncompete agreements under Connecticut law, but left unclear the parameters of that holding....more

Gray Reed

Texas Federal Court Blocks FTC's Non-Compete Ban

Gray Reed on

On August 20, 2024, Judge Ada Brown of the Northern District of Texas issued her much anticipated order which officially set aside the FTC’s Final Rule Banning Non-Competes (the “Ban”), which we first brought to your...more

Farrell Fritz, P.C.

Unpacking the (Un)Reasonableness of Non-Compete Provisions

Farrell Fritz, P.C. on

New York law generally does not favor non-compete agreements, viewing them as unreasonable restraint of trade. As a result, New York courts apply a rigorous standard when deciding whether to enforce these restrictive...more

Mayer Brown

United States: Restrictive Covenants

Mayer Brown on

The enforceability of restrictive covenants in the United States is currently governed by state law, although that may change if federal rules or legislation are enacted to address such covenants. State laws regarding...more

Mayer Brown

China: Restrictive Covenants

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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

PilieroMazza PLLC

Texas Court Order Imperils FTC’s Forthcoming Non-Compete Ban

PilieroMazza PLLC on

On July 3, 2024, the District Court for the Northern District of Texas stayed enforcement of the Federal Trade Commission’s (FTC) impending ban on non-compete agreements between employers and employees (the Rule) pending the...more

Burr & Forman

Protecting Confidential Intellectual Property in the Wake of the FTC’s “Final Rule” Against Non-Competition Provisions

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As the Federal Trade Commission (FTC) implements “the final rule” banning non-competes, businesses with sensitive intellectual property (IP) must look to alternative measures to safeguard it. Despite apprehension about the...more

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

New Maryland Law Places New Restrictions on Noncompete Agreements for Health Care and Veterinary Professionals

Restrictions on noncompete agreements in the state of Maryland for certain care-related industries have become substantially broader. Under Maryland’s House Bill (HB) 1388, Maryland employers now face greater restrictions...more

Sands Anderson PC

Five Things You Should Know About the FTC’s Ban on Noncompetes

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The Federal Trade Commission (FTC) rattled the business world last month when it issued a rule that would nullify most noncompete agreements. Within 24 hours, the FTC was sued by two different parties that argued the agency...more

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