News & Analysis as of

Former Employee Restrictive Covenants

Parker Poe Adams & Bernstein LLP

Customer Non-Solicitation Restrictions Face Increasing Scrutiny

When considering whether to place employees under post-employment restrictive covenants, employers often consider including customer non-solicitation provisions in addition to or as an alternative to the traditional...more

Jackson Lewis P.C.

Insider Threats: The Overlooked Risks of Departing Employees and Sensitive Data Theft

Jackson Lewis P.C. on

Insider threats continue to present a significant challenge for organizations of all sizes. One particularly concerning scenario involves employees who leave an organization and impermissibly take or download sensitive...more

Ius Laboris

‘Improvement in Position’ Cuts Both Ways in Non-Compete Clauses

Ius Laboris on

When it comes to enforceability of a non-compete clause, the prospect of a raise for the employee can in some instances be an argument in favour of the employer....more

Ballard Spahr LLP

NLRB General Counsel Steps Up Remedies for Unlawful Noncompetes and Targets “Stay-or-Pay” Agreements

Ballard Spahr LLP on

On October 7, 2024, the National Labor Relations Board’s (NLRB) top prosecutor issued a memo to NLRB regional offices, solidifying the hard line her office will take on noncompete and “stay-or-pay” agreements and calling for...more

CDF Labor Law LLP

Former Draftkings’ Employee Loses Bet On California’s No Non-Compete Law

CDF Labor Law LLP on

In what might be the first published case discussing California’s newest anti-non-compete laws, Cal. Bus & Prof. Code § 16600.5(a) & (b), DraftKings successfully obtained a preliminary injunction and defeated the appeal of...more

WilmerHale

Beating the Odds: First Circuit Doubles Down on Massachusetts Decision Enforcing Noncompete Against Sports Betting Executive Newly...

WilmerHale on

Against a growing trend of legislation and broader efforts seeking to limit or eliminate post-employment noncompetition restrictions, recent Massachusetts and First Circuit decisions in a dispute between DraftKings and one of...more

Mayer Brown

Employer's Claim to Enforce Non-Compete and Non-Solicitation Obligations Dismissed by Hong Kong Court

Mayer Brown on

In the recent case of Moxie Communications Limited v. Lai Cheuk Lok [2024] HKDC 1323, an employer (the "Company") sought to enforce two post-termination restrictive covenants ("PTRs") against a former employee (the...more

Epstein Becker & Green

Georgia Supreme Court Allows for Employee Non-Solicitation Agreements That Lack Express Geographic Limits

Last summer, as discussed in this blog, the Georgia Court of Appeals issued a decision in N. Amer. Senior Benefits, LLC v. Wimmer that presented potential challenges for employers seeking to enforce employee non-solicitation...more

Mayer Brown

Germany: Restrictive Covenants

Mayer Brown on

AT A GLANCE - Employees in Germany are subject to statutory non-competition and non-solicitation obligations during an employment relationship. Similar statutory restrictions apply to directors and board members as long as...more

Mayer Brown

China: Restrictive Covenants

Mayer Brown on

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

Ius Laboris

Employer’s Missteps Forfeited Non-Compete Clause    

Ius Laboris on

In a recent case in Denmark, an employer lost its right to obtain an injunction against a former employee performing consultancy work for a competitor....more

BCLP

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

BCLP on

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

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

FTC’s Ban on Non-Compete Agreements: Definitions, Prohibitions, Requirements, and Employer Considerations

On May 7, 2024, the Federal Trade Commission (FTC) published a final rule that effectively bans all non-compete agreements between employers and “workers” as “unfair method[s] of competition” and requires employers to refrain...more

Fish & Richardson

What the FTC’s Ban on Noncompete Agreements Means for Trade Secrets

Fish & Richardson on

On April 23, the Federal Trade Commission (FTC) issued a final rule that would ban the use of noncompete agreements in most employment contracts nationwide. Hailed by the Commission as a measure to promote competition,...more

Holland & Knight LLP

Don't Fret (Yet): Trade Secrets, NDAs and Non-Solicits After the FTC Non-Compete Rule

Holland & Knight LLP on

With the issuance of the Federal Trade Commission's (FTC or Commission) much-anticipated final rule on its "non-compete ban" (see Holland & Knight's previous alert, "New FTC Rule Bans Non-Compete Agreements in All Employment...more

Fenwick & West LLP

FTC Bans Employment Noncompetes

Fenwick & West LLP on

On April 23, 2024, the Federal Trade Commission (FTC) voted 3-2 to adopt a final rule broadly banning post-employment noncompete agreements. This federal ban prohibits for-profit employers from entering into noncompete...more

Womble Bond Dickinson

FTC Issues New Rule - But Not the Final Chapter - on Non-Competes: What Employers Need to Know

Womble Bond Dickinson on

On April 22, the Federal Trade Commission issued its final “Non-Compete Clause Rule” which bans most non-competes in the United States. It will become effective 120 days after it is published in the Federal Register....more

Baker Donelson

The End of Non-Competition Agreements? Not so Fast!

Baker Donelson on

The Federal Trade Commission (FTC) issued a final rule in a partisan 3-2 vote on April 23, 2024 prohibiting employers from binding most American workers to post-employment non-competition agreements (the "Final Rule")....more

ArentFox Schiff

2023 Trade Secrets End of Year Report

ArentFox Schiff on

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

Quarles & Brady LLP

Employers Have New Obligations Under Statute Regulating Noncompete Agreements

Quarles & Brady LLP on

As discussed in a prior alert, newly-enacted California laws governing noncompete agreements require employer action by February 14, 2024. This alert explains the purpose of the new laws, what the notification requirement...more

Littler

Dutch Employer Paid Dearly for an Offer to Buy Out a Non-Compete Clause

Littler on

In a recent matter before the Arnhem-Leeuwarden Appellate Court, an employer in the Netherlands attempted to hold a former employee to his non-compete clause. After the employee had terminated his employment contract, the...more

Seward & Kissel LLP

Employment Litigation Roundup: December 2023

Seward & Kissel LLP on

Delaware court declines to enforce restrictive covenants in LLC agreement but grants interlocutory appeal. In Sunder Energy v. Jackson, et al., a company, Sunder, sued a former employee, Jackson, for breaching a...more

Morris James LLP

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

Morris James LLP on

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

Littler

The Year in Unfair Competition and Trade Secrets: 2023 Developments and What Is on the Horizon for 2024

Littler on

2023 was an active year in the world of unfair competition and trade secrets law, with employers’ use of restrictive covenant agreements coming under assault at the Federal Trade Commission and National Labor Relations Board,...more

Parker Poe Adams & Bernstein LLP

North Carolina Court of Appeals Limits Grounds for Review of Noncompete Injunction Denial

When litigating employment non-competition covenants, issuance by the court of a preliminary injunction may be more important than the ultimate outcome of the litigation. Depending on the circumstances, the injunction can...more

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