News & Analysis as of

Employment Contract Restrictive Covenants

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

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

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

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

Georgia Court Of Appeals Confirms Non-Solicitation of Employees Covenant Need Not Have Geographic Or Material Contact Language

by Jackson Lewis P.C. on

As previously noted in Jackson Lewis’ Non-Compete & Trade Secrets Report, Georgia adopted legislation governing restrictive covenant agreements entered into on or after May 11, 2011. This law, however, does not address...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

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

Recent Pennsylvania Court Decision Highlights Enforceability of Non-Solicitation Agreements

Every year, Pennsylvania’s appellate courts seem to issue a handful of decisions addressing the enforceability of non-compete agreements. However, there are relatively few court decisions addressing non-solicitation...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

Employers Beware! North Carolina Business Court Establishes New Standard for Consideration for Restrictive Covenants

Restrictive covenants are valuable tools employers can use to protect their proprietary interests. Covenants not to compete and covenants not to solicit an employer’s clients or employees are the most common forms of...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

The Not-So-Secret Recipe: How Restaurants Can Protect Their Trade Secrets

Restaurant fortunes are often attributable to just one or two signature dishes, and recipe ownership dilemmas can arise in restaurants of all sizes. Recent examples include a joint venture gone awry, resulting in a war over...more

To Connect Or Not To Connect, That Is The Non-Solicitation Agreement Question

by Seyfarth Shaw LLP on

Seyfarth Synopsis: A former employee’s social media activities were not “solicitations” that breached his employment non-solicitation agreement where no suggestion to join the former employee was apparent from the activity....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

Do employees need to disclose intention to compete?

by Dentons on

All employment contracts have an implied term ensuring that employees will serve their employer with good faith and fidelity. This implied term covers numerous things, including prohibiting employees from competing with their...more

Non compete clauses and employees destined for greatness

by Dentons on

The case of Egon Zehnder Ltd v. Mary Caroline Tillman is another useful reminder to ensure that restrictive covenants are fit for purpose and, whilst in this case the covenants were upheld, it is also a reminder to ensure...more

Tips for Drafting Executive Employment Agreements – Tip #3 – Restrictive Covenants

by Bryan Cave on

This article continues with another tip for drafting executive employment agreements and the importance of consulting counsel. For every well drafted executive employment agreement in the business world, there seem to be...more

Illinois Employers Should Not Depend on Blue Penciling to Enforce Restrictive Covenants

by Seyfarth Shaw LLP on

Illinois is one of several jurisdictions that recognizes the authority of courts to blue pencil or judicially modify otherwise unenforceable restrictive covenants to be enforceable. See, e.g. Weitekamp v. Lane, 250 Ill. App....more

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