News & Analysis as of September 22, 2024

Unenforceable Contract Terms

+ Follow

Hiring & Firing refers to the process of recruiting, interviewing and offering employment and the process of evaluating performance and dismissing employees. Hiring & Firing is a highly regulated area and can create tremendous liability for employers who fail to properly adhere to acceptable employment practices. Some of the potential pitfalls in this area stem from discriminatory hiring practices, improper performance evaluations, and retaliatory firings. less -

Ontario, Canada Court Finds Termination Clauses in Fixed-Term Employment Agreement Unenforceable

Littler on 3/12/2024

In Dufault v. The Corporation of the Township of Ignace, 2024 ONSC 1029, the Ontario Superior Court of Justice held that the termination provisions of a fixed-term employment contract were illegal and unenforceable because...more

Fixed in Stone - Fixed Term Remains Secure Despite Invalid Termination Clause

Stikeman Elliott LLP on 8/22/2023

The Ontario Superior Court of Justice recently released its decision in Kopyl v Losani Homes (not yet cited) (the “Decision”), providing insight into the enforceability of fixed terms in employment agreements in circumstances...more

“Fixing” the Term of Employment: Fixed-Term Agreement defends against Wrongful Dismissal Claim

Stikeman Elliott LLP on 2/27/2023

In the recent Steele v. The Corporation of the City of Barrie, 2022 ONSC 7245 decision (“Steele”), the Ontario Superior Court of Justice provided some insight into when longer term fixed-term contracts can be enforceable....more

Ontario, Canada Court Decides Employment Contract’s Unenforceable Confidentiality and Conflict-of-Interest Clauses Invalidated All...

Littler on 8/25/2022

Two years ago in Waksdale v. Swegon North America Inc., 2020 ONCA 391, the Ontario Court of Appeal established the proper method for determining whether a termination clause in an employment agreement is enforceable. ...more

Non-Compete News: Georgia Court Holds Non-compete and Non-solicit of Employee Provisions With Missing Territory Unenforceable and...

FordHarrison on 7/12/2022

Earlier this year, in Steuer v. Tomaras, et al., Georgia’s Statewide Business Court again refused to modify certain restrictive covenants that were missing a territory. Dr. Steuer, a former partner of the defendant doctors,...more

Pennsylvania Supreme Court Voids No-Hire Provision in Service Contract Between Two Employers

Troutman Pepper on 6/10/2021

Q: I heard that companies entering into commercial contracts in Pennsylvania can no longer restrict each other from hiring their employees. Is that true?...more

The Supreme Court of Pennsylvania Takes Significant Step To Remove “Employers” From The List Of Species Protected from Poachers

Obermayer Rebmann Maxwell & Hippel LLP on 5/12/2021

Thanks to a recent ruling by the Supreme Court of Pennsylvania, workers in the Commonwealth are now more likely to be considered “fair game” to other potential employers, even in the presence of an agreement otherwise between...more

Non-Compete News: Open Season? Pennsylvania Supreme Court Invalidates No-Poach Provision Between Businesses

FordHarrison on 5/10/2021

In a recent decision and case of first impression, Pennsylvania’s Supreme Court unanimously affirmed that a no-hire of employees provision between a business and its vendor was unenforceable because it constituted an...more

Pennsylvania Supreme Court Decides Issue of First Impression on “No-Hire” (or “No-Poach”) Agreements

Littler on 5/5/2021

The Pennsylvania Supreme Court recently decided an issue of first impression regarding “no-hire” (or “no-poach”) provisions in commercial contracts between two companies. In such agreements, one company agrees not to solicit...more

Supreme Court of Pennsylvania Provides A 7-Step Roadmap to Employers While Striking Down No-Hire Agreement

Fisher Phillips on 5/4/2021

In a decision resolving a dispute that has been pending for nearly five years, the Supreme Court of Pennsylvania just voided a no-hire provision entered into by two companies that bound one of them from hiring former...more

Ontario, Canada: Court Reminds Employers Termination Provisions that Could Possibly Violate ESA in the Future are Unenforceable

Littler on 11/9/2020

In Rutledge v. Canaan Construction Inc., 2020 ONSC 4246, Ontario’s Superior Court held, rather surprisingly, that a termination provision in an employment contract that has even a remote possibility of violating the...more

Employees Laid Off As A Result Of COVID-19 Ask Courts To Find Their Non-Compete Agreements Unenforceable

Fisher Phillips on 9/14/2020

Since the onset of COVID-19 and the related business shut-downs, employers across the country have been forced to make the difficult decision to lay off or terminate many of their employees. Of the tens of millions who have...more

Mark Your Calendars, New York Employers: A Look at the 2020 Effective Dates for Employment-Related Legislation

Kramer Levin Naftalis & Frankel LLP on 1/15/2020

2019 brought a number of important changes in the law that warrant the attention of New York employers. Start off the new year right and ensure your calendars are up to date by including the 2020 effective dates of these New...more

Reminder: Imminent Changes to Enforceability of Non-Competes in Washington State

Wilson Sonsini Goodrich & Rosati on 12/19/2019

With the new year fast approaching, employers with Washington-based workers should ensure—if they have not already—that they are prepared to comply with legal changes substantially limiting the enforcement of non-compete...more

California Supreme Court Provides Valuable Blueprint For Your Arbitration Agreement Strategy

Fisher Phillips on 9/23/2019

The California Supreme Court recently handed down an intriguing decision which casts doubt on – and in some cases even condemns – some of the most common practices used by employers in both drafting and presenting arbitration...more

Washington Restricts Use of Non-Competition Agreements

Orrick - Trade Secrets Group on 8/2/2019

Earlier this year, Washington adopted a new law—Engrossed Substitute House Bill 1450—that places significant restrictions on the enforceability of non-competition agreements. The law applies to “every written or oral...more

UK Supreme Court Revises Test for Evaluating Post-termination Restrictions

Littler on 8/2/2019

To much fanfare and the great excitement of many employment lawyers, the UK Supreme Court recently delivered its first judgment on employment post-termination restrictions for a century, in Tillman v. Egon Zehnder. The court...more

Are Your Noncompete Agreements Dying of Old Age?

Akin Gump Strauss Hauer & Feld LLP on 7/16/2019

Key Points - • Tight labor markets are leading courts and legislatures to closely scrutinize noncompetes and other restrictive covenants. • If there are changes in an employee’s job and/or the company’s business, it...more

Working Wise: Tips and Common Mistakes to Avoid for Employers in California

K&L Gates LLP on 5/9/2019

In this episode of the Working Wise Podcast Series, K&L Gates Los Angeles Associate Saman Rejali provides an overview of tips and common mistakes to avoid for employers doing business in California....more

New Hampshire Senate Seeks to Ban Non-Competes for Low-Wage Workers

Seyfarth Shaw LLP on 2/27/2019

On February 21, 2019, the New Hampshire Senate, in a bipartisan voice vote and without debate, passed Senate Bill 197, which would prohibit employers from requiring low-wage workers to enter into non-compete agreements, and...more

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

Cozen O'Connor on 1/30/2019

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

Are No-Hire Provisions Now Void and Unenforceable Under Pennsylvania Law?

Troutman Pepper on 1/28/2019

On January 11, an en banc panel of the Superior Court of Pennsylvania affirmed a trial court’s decision declaring that a no-hire provision in a commercial contract between two businesses was void and unenforceable under...more

New Jersey Appellate Division Invalidates Jenny Craig Employee Arbitration Provision

Genova Burns LLC on 10/19/2018

This week, in Marilyn Flanzman v. Jenny Craig Inc. et al., No. A-2580-17, a panel of the Appellate Division found that an arbitration provision between weight loss company Jenny Craig and a former employee was unenforceable...more

Kentucky Supreme Court Rules FAA Does Not Protect Mandatory Employment Arbitration

Ogletree, Deakins, Nash, Smoak & Stewart,... on 10/15/2018

In a surprise decision, the Supreme Court of Kentucky ruled on September 27, 2018, that the Federal Arbitration Act (FAA) does not protect employment arbitration agreements that are required as a condition of employment....more

Post-Contractual Non-Competes – a never ending story

BCLP on 5/1/2018

There are few clauses in employment contracts more heavily debated than Non-Competition Clauses (post-contractual non-competes). While employers tend to include them rather easily in order to protect company secrets beyond...more

25 Results

View per page

Page: of 1

Hiring & Firing › Employer Liability Issues › Unenforceable Contract Terms

"My best business intelligence, in one easy email…"