News & Analysis as of

Employment Contract Non-Compete Agreements

Tennessee Court of Appeals Finds that Former Employee Breached Non-Compete Agreement Through Actions of His Subordinates

by Butler Snow LLP on

In November 2017, the Tennessee Court of Appeals upheld a Nashville trial court’s determination that a former employee violated his noncompete agreement by managing employees who solicited competing business in the restricted...more

New Jersey Proposes to Drastically Restrict the Use of Non-Compete Agreements

Last month, the New Jersey State Senate introduced Senate Bill 3518 (the “Bill”), which, if passed, will severely restrict the use and enforceability of employee non-compete agreements in the state of New Jersey. Most...more

New Jersey Bill Would Limit Non-Compete Agreements

by Jackson Lewis P.C. on

A bill in the New Jersey Senate, Senate Bill 3518 (“SB 3518”), and an identical companion bill in the New Jersey Assembly (Assembly Bill 5261), would significantly curtail the use of non-compete agreements in New Jersey. In...more

Massachusetts Once Again Is Considering Enacting Comprehensive Noncompete Legislation

For nearly a decade, Massachusetts legislators have considered various bills aimed at regulating the use of noncompetition agreements in the commonwealth. Noncompetes currently are governed by Massachusetts case law which,...more

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

by 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

Be Careful When Using Liquidated Damages with Your Non-Compete Clause

by Burns & Levinson LLP on

As I have counseled many clients, a non-compete provision is different than most other contractual terms, because simply having mutual consent and consideration will not automatically render it enforceable for reasons of...more

District Court Case Highlights Advantages of ERISA Severance Plans

by Hogan Lovells on

Specialists have long touted certain significant advantages to employers that come along with maintaining ERISA severance plans, and a recent district court case highlights some of these advantages....more

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

by FordHarrison on

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

Non-Competition Clauses Under Taiwan Law

by K&L Gates LLP on

It is a common practice for employers to impose non-competition obligations on employees both during and after termination of employment. The long standing issue is whether these obligations violate the right to work under...more

Clear As Mud: Illinois Courts Continue To Grapple With The “Adequacy” Of Consideration For Non-Compete Agreements

by Jackson Lewis P.C. on

It is axiomatic that a contract requires consideration to be binding. Ordinarily, courts only inquire into the existence, but not the “adequacy,” of consideration. Illinois courts, however, also scrutinize the adequacy of...more

Non-Compete Legislation Update: Why Choices of Law and Forum are a Big Deal

On October 31, 2017, the Joint Committee on Workforce and Development once again held a hearing to discuss the possibility of legislative changes to Massachusetts non-competition and trade secrets laws. There were several...more

[Webinar] Best Practices for Employers When Dealing With Issues Relating to Employment Agreements with Restrictive...

by Conn Maciel Carey LLP on

Many companies frequently use non-compete and non-solicit clauses in their employment agreements. However, there are several important legal issues to consider before drafting and executing these agreements. When an employee...more

Defending Trade Secrets In The Gig Economy

by Fisher Phillips on

Waking up to news of another major data breach seems to have become a daily routine. On the front pages and cable news, we hear about hackers, rogue governments, and shadowy figures involved with these data breaches. But too...more

Continued Employment Isn’t Always Sufficient – Minnesota Requires Additional Consideration For Non-Compete With Current Employee

by Jackson Lewis P.C. on

The Minnesota federal district court recently refused to enforce a non-compete agreement, in part, because the employer failed to establish that the agreement was supported by valuable consideration. The decision, issued on...more

Massachusetts Legislature Schedules Hearing on Non-Compete Reform

by Seyfarth Shaw LLP on

The Massachusetts legislature is back at it again. Under new leadership, the Joint Committee on Labor & Workforce Development recently scheduled a hearing for October 31, 2017 on the non-compete reform bills proposed in...more

Departing Employees: Ensuring Protection of Trade Secrets and Intellectual Property

“Knowledge is power” goes the old adage. Well, that is certainly true in the world of business where secret processes, confidential designs, and even a good customer list can give a business a vital commercial edge over its...more

Kansas Decision Highlights The Perils Of Overreach In Restrictive Covenant Agreements

by Jackson Lewis P.C. on

In a recent decision examining Kansas non-compete law, the United States District Court for the District of Kansas partially granted a company’s motion to enjoin its former employee’s violations of the non-compete and...more

Swimming Pool Company’s Non-Compete Claim Takes a Dive

by Zuckerman Spaeder LLP on

When a company believes that an employee has breached a non-compete agreement by going to work for a competitor, one remedy it can seek is a preliminary injunction. A preliminary injunction is meant to preserve the status quo...more

Ineligible Coach On The Field – Assessing Whether Restrictions Are Enforceable In Contracts

With the start of college football season around the corner, attention turns to off-season shake ups in coaching staffs. One controversial change involved defensive coordinator Robert H. Shoop. Shoop traded in his blue and...more

Non-compete post-termination restrictions: de minimis carve-out - Tillman v. Egon Zehnder Limited

by Dentons on

We considered the case of Tillman in our last edition of the newsletter but it's back again. Ms Tillman has successfully appealed to the Court of Appeal, which has made a finding that her non-compete restriction was...more

Protecting Business Interests: Don't Get Stung by an Overly Wide Non-Compete

by Faegre Baker Daniels on

In Tillman v Egon Zehnder Ltd [2017] EWCA Civ 1054 the Court of Appeal examined the enforceability of a non-compete covenant. Ms Tillman was the global co-head of financial services at Egon Zehnder Ltd (EZ), a professional...more

New York Appellate Decision Questions Enforceability of Employee Non-Compete Agreements, Demonstrates Need for Employers to...

by Wilson Elser on

For more than a century, New York courts have been enforcing employee non-compete agreements, despite expressing their disfavor of these agreements and related enforcement challenges. In New York, as in many states,...more

NYC Proposes Ban on Non-Competes

by Reed Smith on

New York City, which for years has been a trailblazer in employee-friendly workplace legislation, is at it again. Late last month, the NYC Council proposed a bill that would prohibit non-compete agreements for low-wage...more

National Survey On Restrictive Covenants In Employment

by Fox Rothschild LLP on

This survey has been provided by the Fox Rothschild Labor and Employment and Securities Industry practice groups as a quick reference for in-house counsel and human resource professionals. The law in this area not only...more

North Carolina Business Court Decision Could Impact Enforceability of Many Non-Competition Covenants

by Womble Bond Dickinson on

A recent decision in the North Carolina Business Court could have significant implications on non-competition covenants in employment agreements that contain a very common automatic renewal term. The decision, if followed by...more

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