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Employment Contract Restrictive Covenants

Goulston & Storrs PC

Breaking Down the New Massachusetts Noncompete Rules for Employees

by Goulston & Storrs PC on

In the four months since the Massachusetts Noncompetition Agreement Act became effective, employers have learned the hard way that implementing the new rules is a lot harder than it seems....more

Genova Burns LLC

"Breaking Contracts has Consequences" - Third Circuit Backs Employer with Restrictive Covenant Agreements

by Genova Burns LLC on

What happens when your employee signs multiple restrictive covenant agreements with different terms, and then violates them? A recent decision from the Third Circuit in Heartland Payment Sys., LLC v. Volrath addresses a...more

Constangy, Brooks, Smith & Prophete, LLP

California Snapshot: Don't Place All Your Bets On Employee Non-Solicitation Agreements.

A bewildering line of cases. For more than 30 years, employers have relied on the California Court of Appeal’s decision in Loral Corp. v. Moyes to support the inclusion of employee non-solicitation provisions in employment...more

Littler

Unfair Competition: What Happened in 2018, and What's in Store for 2019

by Littler on

From sweeping legislation to unexpected case law, and everything in between, 2018 brought a lot of changes to unfair competition law....more

Orrick - Trade Secrets Group

Another California Court Raises Doubts on Employee Non-Solicitation Provisions

Last November, we discussed the potential impact of a recent California appellate court decision, AMN Healthcare, Inc. v. Aya Healthcare Services, Inc., 28 Cal. App. 5th 923 (2018), which called into question long-standing...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

Weintraub Tobin

Co-Worker Non-Solicitation Provisions In Jeopardy?

by Weintraub Tobin on

For years, California courts have recognized the right of employers to use non-solicitation provisions in employment agreements to prevent employees from “soliciting” their coworkers to join them at a new employer. For...more

Downs Rachlin Martin PLLC

Vermont Legislative Update 02-01-2019 - An analysis from DRM's Government & Public Affairs Team

by Downs Rachlin Martin PLLC on

House Commerce pauses bill to ban non-compete agreements - After hearing limited opposition from the business community to a bill that would ban virtually all non-compete agreements, the House Commerce and Economic...more

BakerHostetler

California Federal District Court Interprets Recent California Court of Appeal Decision to Broadly Prohibit Employee...

by BakerHostetler on

California employers and their legal counsel reasonably had assumed that California law distinguishes employee non-solicitation agreements from noncompetition agreements and that the former were enforceable. ...more

Orrick - Trade Secrets Group

Using Non-Compete Agreements in Employment Contracts to Protect Trade Secrets

Employers in many industries use non-compete agreements as a key tool to protect trade secrets.  According to U.S. Treasury reports, non-compete agreements impact approximately 30 million – nearly one in five – U.S. workers,...more

Wilson Sonsini Goodrich & Rosati

Recent Cases Shed Light on the Status of Employee Non-Solicitation Agreements in California

Two recent cases have found that employee non-solicitation agreements, at least in the form many companies currently use, are unlawful in California. In AMN Healthcare, Inc. v. Aya Healthcare Services, Inc., 28 Cal. App. 5th...more

Seyfarth Shaw LLP

Vermont Seeks To Ban Non-Compete Agreements

by Seyfarth Shaw LLP on

The Vermont Legislature kicked off 2019 with bill H.1, seeking to ban non-competes in the Green Mountain State. The new bill has been filed by Martin LaLonde, who promulgated an identical bill last January. ...more

Cozen O'Connor

Pennsylvania Court Joins Trend in Holding No-Hire Agreements are Unenforceable as a Matter of Law

by Cozen O'Connor on

On January 11, 2019, in Pittsburgh Logistics Systems, Inc. v. BeeMac Trucking, LLC and BeeMac Logistics, LLC, a panel of nine judges sitting en banc affirmed a ruling holding that a no-hire agreement between two companies was...more

Seyfarth Shaw LLP

Proposed Federal Non-Compete Legislation Could Have Unintended Consequences

by Seyfarth Shaw LLP on

Last week, Florida Senator Marco Rubio introduced the “Freedom to Compete Act” (the “Act”) proposing to amend the Fair Labor Standards Act (FLSA) of 1938 to ban non-competes for most non-exempt workers. ...more

Akerman LLP - HR Defense

The Outlook for Non-Compete Agreements in 2019

by Akerman LLP - HR Defense on

As employers gear up for 2019, they should be mindful significant reforms in the area of non-compete law that took place in 2018. Although non-competes are widely used and enforceable in the majority of states, there is a...more

Fisher Phillips

Contractual Employee Non-solicitation Provisions Under Attack: Employer Loses Battle in Case Involving Unique Facts

by Fisher Phillips on

California’s prohibition against contracts that restrain a person’s ability to engage in a lawful business, profession, or trade is well-established and well-known. Ten years ago, in Edwards v. Arthur Andersen LLP (2008) 44...more

Nilan Johnson Lewis PA

“Freedom to Compete Act” Aims to Wipe Out Most Non-Compete Agreements

by Nilan Johnson Lewis PA on

In reaction to the recent proliferation of non-compete agreements, courts and legislatures are increasingly trying to find ways to limit their use. The latest attempt is at the federal congressional level. This week, Florida...more

Dickinson Wright

Sixth Circuit Affirms Attorneys’ Fees for “Enforcement” of Non-Compete Agreement

by Dickinson Wright on

In a dispute involving a non-compete agreement with three former employees, the U.S. Court of Appeals for the Sixth Circuit recently upheld a district court decision to award attorneys’ fees to the employer even though there...more

Saul Ewing Arnstein & Lehr LLP

Payday Lender Ends Non-Compete Agreements for Low-Wage Employees in Settlement of Illinois Lawsuit

Payday lender Check Into Cash of Illinois LLC has agreed to stop using restrictive non-compete agreements for low-wage customer service employees at its 33 Illinois locations to settle a lawsuit by the State Attorney...more

Robinson+Cole Health Law Diagnosis

Connecticut Superior Court Ruling Addresses 2016 Physician Non-Compete Law

Connecticut’s Superior Court Stamford recently ruled to modify four physician non-compete agreements into compliance with Connecticut’s physician non-compete statute (Conn. Gen. Stat. § 20-14p), which limits certain covenants...more

Jackson Walker

Continuing Challenges in Enforcing Covenants Not to Compete Under Texas Law

by Jackson Walker on

Challenges remain in enforcing covenants not to compete under Texas law, despite a trend since 2006 from Texas Supreme Court decisions that have approved covenants....more

SmithAmundsen LLC

Ho, Ho, Ho, It’s Restrictive Covenant Season!

by SmithAmundsen LLC on

Early in the New Year we often see employees switching jobs, which can trigger disputes over restrictive covenants in their employment agreements....more

Obermayer Rebmann Maxwell & Hippel LLP

Blue Christmas for Garden State Employers if NJ Passes Proposed Legislation Imposing Very Strict Limits on Non-Competes

With end of year bonuses just around the corner, ‘tis the season for employers to review the non-competition agreements and other restrictive covenants that limit what their employees can do after leaving employment. For...more

Pullman & Comley, LLC

New Massachusetts Non-Compete Law and its Impact on Connecticut Employers

by Pullman & Comley, LLC on

Connecticut companies with employees who work or live in Massachusetts must be aware of a recent Massachusetts law limiting the scope of noncompetition agreements entered into on or after October 1, 2018....more

Jackson Lewis P.C.

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

by Jackson Lewis P.C. on

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

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