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Former Employee Contract Terms

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

Frantz Ward LLP

Not-So-Friendly Reminders from the NLRB to Review Your Severance Agreements and Employee Handbooks

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Recent decisions and settlements from the National Labor Relations Board should serve as a not-so-friendly reminder to ensure that your severance agreements and employee handbooks do not run afoul of the National Labor...more

BCLP

HK High Court Refuses to Enforce a 12-month Worldwide Non-compete Covenant

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In Manulife Financial Asia Limited and Kenneth Joseph Rappold & Others [2024] HKCFI 989 (date of decision: 5 April 2024), the Hong Kong High Court refused a company’s application to enforce a 12-month non-compete clause...more

Sterne, Kessler, Goldstein & Fox P.L.L.C.

FTC Issues Final Rule Banning (Almost All) Non-Compete Agreements

On May 7, 2024, the Federal Trade Commission (FTC) issued a Final Rule that renders invalid non-compete clauses in standard employment agreements. 16 C.F.R. § 910. Although some limited exceptions apply, this new regulation...more

DRI

Non-Compete Clauses and Professional Liability

DRI on

Non-compete provisions have long been viewed by employers as reasonable and appropriate velvet handcuffs on departing employees and as an unfair burden on competition by the departing employees. The purpose of non-compete...more

ArentFox Schiff

2023 Trade Secrets End of Year Report

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2023 was a banner year for trade secrets, non-competes, and other restrictive covenants. Employee non-competes continued to garner attention at the federal agency level, drawing commentary and action from the Federal Trade...more

Benesch

Don’t Forget Your Employees on Valentine’s Day (No, Really): California’s Notification Deadline for All Employees with...

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As previously highlighted by Benesch, California strengthened its long-standing prohibition on non-competition agreements on January 1, 2024. In addition, and also as previously highlighted by Benesch, one of these...more

Epstein Becker & Green

Free to Forfeit: Delaware High Court Holds Employee Choice Is Proper Lens for Evaluating Forfeiture-for-Competition Provisions in...

In a bombshell ruling last year that upended longstanding Delaware law, the Delaware Chancery Court ruled in Ainslie v. Cantor Fitzgerald, L.P., 2023 WL 106924 (Del. Ch. Jan. 4, 2023), that forfeiture-for-competition clauses,...more

Parker Poe Adams & Bernstein LLP

When Can an Employer Claim Ownership of Employees' Social Media Accounts?

We have become involved in an increasing number of disputes between companies and their former employees over ownership and use of personal social media accounts. In a typical situation, the employee will use their personal...more

Polsinelli

New Year, New Severance and Settlement Agreement Rules for New York

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With the New Year in full swing, it is important for New York employers to be aware of recent changes to New York’s statutes relating to severance agreements. On November 17, 2023, New York enacted S4516, which provides...more

Stark & Stark

Employee’s Duty of Loyalty to Employer

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While everyone is undoubtedly aware that an employee is not lawfully permitted to steal from his/her employer, the next logical question concerns what specifically are an employee’s legal obligations during their course of...more

Morris James LLP

Chancery Finds Non-Compete Unenforceable by Subsidiaries Unless Identified in Agreement

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Frontline Techs. Parent, LLC v. Murphy, C.A. No. 2023-0546-LWW (Del. Ch. Aug. 23, 2023) - This non-compete decision reminds drafters to pay careful attention to scope and definitions, in particular language covering the...more

Sands Anderson PC

NLRB’s McLaren Macomb Decision and the Future of Employee Severance Agreements

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Severance agreements have long been utilized as a valuable tool for providing employers with protections from the post-employment conduct or claims of former employees. Severance agreements often include a wide range of...more

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

Georgia Appellate Court Says Employee Nonsolicitation Covenant Not Enforceable Without Express Geographic Limitation

In a recent decision, a Georgia appellate panel held that an employee nonsolicitation covenant that limits what parties can do following the end of a business relationship must have an explicit geographic limitation to be...more

Nutter McClennen & Fish LLP

Massachusetts Court Dismisses Robotics Company’s Chapter 93A Claim Because Company Did Not Allege Former Employee Used or...

In Vicarious Surgical Inc. v. Beth Tragakis, Judge Salinger, sitting in the Massachusetts Business Litigation Session, dismissed a robotics company’s Chapter 93A claim for lack of any allegations that the robotics company was...more

Stoel Rives - World of Employment

NLRB Returns to Longstanding Position Limiting Use of Confidentiality, Non-Disclosure, and Non-Disparagement Clauses in Employee...

The General Counsel of the National Labor Relations Board (NLRB), Jennifer A. Abruzzo, issued guidance on March 22, 2023, about the NLRB’s McLaren Macomb, 372 NLRB No. 58, decision from February 21, 2023, which reinstated a...more

Society of Corporate Compliance and Ethics...

Federal Trade Commission proposes a noncompete ban: Five things to know

By now, most compliance professionals are aware of the Federal Trade Commission (FTC) press release from January 5, which announced its proposed rule to ban noncompete clauses. The FTC proposed adding a new subchapter J,...more

Nelson Mullins Riley & Scarborough LLP

NLRB General Counsel Issues Guidance on Severance Agreement Restrictions following McLaren Macomb

On March 22, 2023, NLRB General Counsel Jennifer Abruzzo issued Memorandum GC 23-05 (the “Memorandum”) offering guidance to Regional Directors for interpreting the National Labor Relations Board’s (the “NLRB” and the “Board”)...more

Wyrick Robbins Yates & Ponton LLP

NLRB Questions Confidentiality and Nondisparagement Provisions in Separation Agreements

Employers terminating employees frequently offer severance payments in exchange for the employees’ entry into a separation agreement.  Generally these separation agreements include a release of claims along with other...more

Parker Poe Adams & Bernstein LLP

North Carolina Business Court Dismisses Overbroad Non-Compete

When we are asked by a client to review their form employee non-competition agreement, we often see companies using documents found on the internet that were clearly written for use in states other than North Carolina. Last...more

Dickinson Wright

NLRB’s Combination McLaren Decision and GC Memo KO’s Severance (and Other) Agreements

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In the McLaren Macomb opinion issued last month, 372 NLRB No. 58 (2023), the National Labor Relations Board (“NLRB”) landed a healthy punch chipping away at what had previously been considered standard severance provisions in...more

Adler Pollock & Sheehan P.C.

The End Of An Era, Separation Agreements In The Wake Of Mclaren Macomb: What Employers Need To Know

The National Labor Relations Board’s (the “Board”) decision in McLaren Macomb, significantly changes what employers are allowed to include in a departing employees’ severance/separation agreements or packages.  The Board’s...more

Burns & Levinson LLP

The Impact of McLaren Macomb Continues to Grow—Next Steps for In-House Counsel.

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As a follow up to my post a few weeks ago on McLaren Macomb, the NLRB has issued new Guidance of which in-house counsel should take note....more

Dentons

Severance Agreements – Federal Implications

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In the last article, we covered an Iowa Court of Appeals case relating to severance/separation agreements and whistleblower claims. Other issues have cropped up regarding severance agreements and their enforceability but on...more

Tannenbaum Helpern Syracuse & Hirschtritt LLP

Confidentiality and Nondisparagement Provisions in Severance Agreements Held Unlawful by the NLRB

The National Labor Relations Board (the “Board”) recently held that that the “mere proffer” of severance agreements with boilerplate type confidentiality and nondisparagement provisions violate the National Labor Relations...more

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