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Non-Compete Agreements › Contract Terms › Restrictive Covenants

Non-Compete Agreements are contracts, typically formed in employment or business purchase contexts, where one party agrees to refrain from engaging in a particular line of work or pursuing business within a... more +
Non-Compete Agreements are contracts, typically formed in employment or business purchase contexts, where one party agrees to refrain from engaging in a particular line of work or pursuing business within a certain industry or locale. The purpose of these agreements is to protect employers or business purchasers from competition stemming from former employees or former owners of a business. less -
Bass, Berry & Sims PLC

States Continue to Refine Their Treatment of Non-Competition Agreements

Bass, Berry & Sims PLC on

The vast body of restrictive covenant law continues to develop across the country as states navigate refining their approach to non-compete and non-solicitation agreements with some expansions along with the general trend of...more

Conn Kavanaugh

It’s Confirmed: Massachusetts Noncompetition Agreement Act Excludes Non-Solicitation Agreements

Conn Kavanaugh on

On June 13, 2025, the Massachusetts Supreme Judicial Court (SJC) issued a significant decision in Miele v. Foundation Medicine, Inc. (SJC-13697) confirming that the Massachusetts Noncompetition Agreement Act (the “MNAA”) does...more

Lasher Holzapfel Sperry & Ebberson PLLC

The Rules of Washington Noncompetition Agreements May Change Again

Lasher Holzapfel Sperry & Ebberson PLLC on

The enforceability of noncompetition agreements is a widely debated topic in and outside of the legal world. In just the last year, it has been a repeat topic on the floor of the Washington state legislature. States across...more

Epstein Becker & Green

New Jersey Bill Would Introduce Sweeping Noncompete and No-Poach Restrictions: Strategic Implications for Employers

Epstein Becker & Green on

As anticipated, New Jersey has joined the growing list of state legislative efforts aimed at prohibiting or restricting the use of noncompetes and no-poach agreements....more

Seyfarth Shaw LLP

Non-Compete Agreements in Health Care: A Rapidly Evolving Legal Landscape

Seyfarth Shaw LLP on

In the wake of the Federal Trade Commission’s recently failed attempt to ban non-compete agreements between employers and workers, individual states have once again taken up the mantle of further regulating and limiting their...more

Baker Donelson

Employers Can Relax: Florida Gets Friendlier on Non-Compete Agreements

Baker Donelson on

Employers can relax and enjoy the Florida sunshine. Here is why: On April 24, 2025, the Florida Legislature passed the Florida Contracts Honoring Opportunity, Investment, Confidentiality, and Economic Growth (CHOICE) Act. Not...more

Lowndes

Florida’s Choice Act Enhances Employer Enforcement of Noncompete Agreements

Lowndes on

The proposed Florida Contracts Honoring Opportunity, Investment, Confidentiality and Economic Growth (CHOICE) Act marks a substantial development in Florida’s treatment of noncompete agreements....more

Bracewell LLP

Texas SB 1318: Changes to Healthcare Non-Competes Effective September 1, 2025

Bracewell LLP on

Healthcare employers in Texas face new requirements for non-competition agreements following the passage of Senate Bill 1318. The Texas Legislature passed this legislation on May 28, 2025, and on June 20, 2025, Governor...more

Mintz - Employment Viewpoints

Top Massachusetts Court Clarifies That Non-Solicitation Covenants Fall Outside the State’s Non-Compete Law

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In a closely watched decision, the Massachusetts Supreme Judicial Court in Miele v. Foundation Medicine, Inc. clarified that the Massachusetts Noncompetition Agreement Act (MNAA) (G.L. c. 149, § 24L) does not apply to...more

Potomac Law Group, PLLC

NDAs with Extras: What You Didn’t Sign Up For

Potomac Law Group, PLLC on

Anyone who has had even passing exposure to technology companies has dealt with Non-Disclosure Agreements (commonly referred to as "NDAs" in high-tech companies but "CDAs" in pharma/biotech to distinguish them from the other...more

Jackson Walker

Governor Abbott Signs SB 1318, Instituting Limitations on Covenants Not to Compete of Physicians, Dentists, Physician Assistants,...

Jackson Walker on

On June 20, 2025, Texas governor Greg Abbott signed Senate Bill 1318, initiating major changes in the scope and enforceability of non-competition covenants that are commonly included in the sale of a medical practice or other...more

Holland & Knight LLP

Change Is Coming: Texas Healthcare Provider Non-Competes Subject to New Strict Limits

Holland & Knight LLP on

Texas Gov. Greg Abbott on June 20, 2025, signed into law Senate Bill (SB) 1318, which creates greater restrictions on physician non-compete agreements in Texas and, for the first time, extends such restrictions to non-compete...more

Morgan Lewis

Massachusetts High Court Clarifies Noncompete Law’s Scope, Declines to Let Nonsolicits ‘Through the Back Door’

Morgan Lewis on

In Miele v. Foundation Medicine, Inc., the Massachusetts Supreme Judicial Court (SJC) clarified that the Massachusetts Noncompetition Agreement Act (MNAA or the Act) does not apply to a forfeiture clause triggered by a breach...more

Robins Kaplan LLP

Avoiding a Tragic End to a Fiduciary Relationship

Robins Kaplan LLP on

Blockbuster movies follow varied plotlines—some tragic, some heartwarming, some a mix. Often they are based on human dramas. In the real world, fiduciary relationships can set the proverbial stage for unwelcomed high drama,...more

Morgan, Brown & Joy, LLP

Massachusetts Supreme Judicial Court Clarifies Scope of Massachusetts Noncompetition Agreement Act

Morgan, Brown & Joy, LLP on

On Friday, June 13, 2025, the Massachusetts Supreme Judicial Court issued its decision in Miele v. Foundation Medicine, Inc., SJC-13967, holding that forfeiture clauses tied to non-solicitation agreements were definitively...more

Holland & Knight LLP

Supreme Judicial Court Clarifies Scope of Massachusetts Noncompetition Agreement Act

Holland & Knight LLP on

The Massachusetts Supreme Judicial Court (SJC) has ruled that a forfeiture clause triggered by a breach of a non-solicitation agreement is not a "forfeiture for competition agreement" under the Massachusetts Noncompetition...more

Parker Poe Adams & Bernstein LLP

New Florida Law Expands Employers' Ability to Use Noncompetes

Parker Poe Adams & Bernstein LLP on

Over the past several years, EmployNews has chronicled multiple legislative, regulatory, and judicial assaults on the use of noncompetition agreements with employees. These attacks have weakened or eliminated employers'...more

Farrell Fritz, P.C.

The Forfeited Equity Trap: Why Your Non-Compete Might Be Worthless

Farrell Fritz, P.C. on

Imagine you’re a private equity firm. You buy a company, and you want to retain and incentivize key employees, so you give them some equity in the form of incentive units.  You also want to prevent them from running off and...more

Hendershot Cowart P.C.

Are Non-Compete Agreements Banned in Texas?

Hendershot Cowart P.C. on

Last year in April, the Federal Trade Commission (FTC) published a rule to ban most non-compete agreements nationwide. Within hours the rule was challenged in courts across the country, and after months of federal litigation...more

Spilman Thomas & Battle, PLLC

Is Your Business Ready for The CHOICE Act?

Spilman Thomas & Battle, PLLC on

What is the CHOICE Act?          On April 24, 2025, Florida state lawmakers passed the Contracts Honoring Opportunity, Investment, Confidentiality, and Economic Growth Act or CHOICE Act. The CHOICE Act is a law reforming...more

Proskauer - Employee Benefits & Executive...

Tenth Circuit Affirms Distinction Between Forfeiture and Penalty for Competition

Proskauer - Employee Benefits & Executive... on

In Lawson v. Spirit AeroSystems, Inc., the U.S. Court of Appeals for the Tenth Circuit upheld the forfeiture of certain stock awards for violating a covenant not to compete. Like the Seventh Circuit in LKQ Corp. v....more

Troutman Pepper Locke

Restrictive Covenants Unenforceable Where Consideration Forfeited

Troutman Pepper Locke on

In North American Fire Ultimate Holdings, LP v. Alan Doorly, the Delaware Court of Chancery held that the restrictive covenants included in an incentive unit grant agreement were unenforceable when the units received by the...more

Ice Miller

Ohio Legislature Introduces Bill to Ban Non-Competes in Employment Agreements

Ice Miller on

Ohio Senate Bill 11 (SB11)—supported by members from both sides of the political spectrum—has been introduced in the Ohio Legislature, aiming to prohibit employment agreements that restrict employees from competing with their...more

Morris James LLP

Delaware Supreme Court Clarifies Enforcement of Forfeiture-for-Competition Provisions

Morris James LLP on

LKQ Corp. v. Rutledge, C.A. No. 110, 2024 (Del. Dec. 18, 2024) - In this en banc decision, the Delaware Supreme Court answered a certified question from the United States Court of Appeals for the Seventh Circuit...more

BakerHostetler

The CHOICE Act: A New Era for Noncompete Agreements in Florida

BakerHostetler on

As referenced in our blog post discussing notable noncompete changes nationwide, Florida lawmakers are changing how the Sunshine State views noncompete and garden leave agreements....more

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