News & Analysis as of

Non-Compete Agreements 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 -

Non-competes for Existing Employees May Require Additional Consideration

by Foley & Lardner LLP on

It is not uncommon for employers to ask existing employees to sign non-compete agreements. For example, new management may want to tighten up a company’s protections. Or, changes in the business may make the need for employee...more

You Don't Want Your Confidentiality Agreement Evaluated Like A Non-Compete Agreement

by Brooks Pierce on

You probably think that you can avoid having a confidentiality agreement struck down by an NC court because it doesn't have to meet the stricter standard applied to non-compete agreements. The NC Business Court's Opinion...more

N.C. Appellate Court Refuses to Declare Noncompete Invalid Prior to Discovery

In some situations, lawyers can determine that post-employment noncompetition agreements are likely to be declared automatically invalid. For example, a North Carolina employer that attempts to obtain a five year...more

Consider This – Minnesota Court Of Appeals Again Requires Proof Of Additional Consideration For Non-Compete Agreements For...

by Jackson Lewis P.C. on

In October and November of this past year, we wrote about two Minnesota court decisions – Mid-America Business Systems v. Sanderson et al., Case No. 17-3876 (Dist. Minn. Oct. 6, 2017) and Safety Center, Inc. v. Stier, Case...more

New Hampshire, Pennsylvania, Vermont May Restrict Use Of Non-Compete Agreements In Employment

by Jackson Lewis P.C. on

Proposals to restrict the use of non-compete agreements in employment have been introduced in New Hampshire, Pennsylvania, and Vermont. This appears to be the continuation of a trend that started nearly a year ago. On...more

In The Weeds: A Close Inspection Of The Massachusetts Legislature’s Garden Leave Push

by Jackson Lewis P.C. on

The Massachusetts Legislature has spent the past several years seeking to regulate the use of restrictive covenant agreements in the Commonwealth. Despite repeatedly falling short in that initiative, the 2017 legislative...more

Seventh Circuit Finds Five-Year Sale-of-Business Noncompete Agreement Valid

In E.T. Products, LLC v. D.E. Miller Holdings, Inc., the Seventh Circuit Court of Appeals recently held that noncompete agreements signed by sellers of a business were enforceable under Indiana law, but the sellers did not...more

RESTARTING THE CLOCK: Court Determines that Prohibition on Competition Under Injunction Commences From Date of Order as Opposed...

by Cohen & Grigsby, P.C on

Resolving a nettlesome issue in restrictive covenant litigation, the Pennsylvania Superior Court recently held that the amount of time a former employee is prohibited from competing with his former employer under an...more

Federal Court Interprets Florida And Pennsylvania Law To Endorse Protection Of Salon Services Company’s Customer Relationships And...

by Jackson Lewis P.C. on

In states that permit the enforcement of non-compete and other restrictive covenant agreements against former employees, companies must still demonstrate that the restrictions are designed to protect a legitimate business...more

Guide To Employee Non-Compete Agreements in Europe, Middle East and Africa

Business practices are changing. Markets are becoming more global and employees are on the move around the world. Employees are key assets driving sales, productivity and profit over different markets. It is therefore vital...more

Pennsylvania Legislature Joins the Trend to Limit Restrictive Covenants

On November 27, 2017, Pennsylvania became the next state to join the national trend to limit the use of restrictive covenants when a bill was introduced in the Pennsylvania House that would ban non-competition covenants in...more

Non-Compete Legislation Update: Minnesota Remains Among States that Require Employers to Provide Advance Noticed of any...

by Nutter McClennen & Fish LLP on

Two recent cases reaffirm that Minnesota remains among the small, but growing, list of states that require employers to provide advance notice of any non-compete to a potential future employee prior to the commencement of...more

New Jersey Legislature Wants to Limit Restrictive Covenants

In keeping with the national trend limiting the use of restrictive covenants, in November 2017, the New Jersey Senate introduced SB3518, a bill setting forth sweeping restrictions that would limit the enforceability of...more

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

FRANCHISOR 101: Injunction Bottleneck

by Lewitt Hackman on

A restaurant franchisor, World of Beer Franchising ("WOB"), recently lost an appeal to enforce a post-termination restriction against a franchisee launching a competing business. Both the trial and appellate court ruled...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

Minnesota Court Of Appeals Reaffirms That A Non-Compete Must Be Part Of A Job Offer To A Prospective Employee

by Jackson Lewis P.C. on

Last month, this Blog highlighted a Minnesota decision evaluating the consideration required for non-compete agreements entered into after the commencement of employment. As that decision held, such agreements must be...more

New Jersey Bill Seeks to Significantly Restrict the Use and Enforceability of Non-Compete Agreements

On November 9, 2017, the New Jersey Senate introduced Senate Bill 3518, which would drastically limit an employer’s ability to enter into, and subsequently enforce, restrictive covenants (or “non-compete” agreements) with...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

Morgan Stanley Abandons Broker Industry Recruiting Pact

by Genova Burns LLC on

In a major blow to the Protocol for Broker Recruiting, which limited restrictive covenants in the broker industry and resulting litigation, according to Reuters (October 30, 2017), Morgan Stanley has decided to withdraw from...more

Is Customer Information A Trade Secret? Not So Fast!

by Farrell Fritz, P.C. on

Under what circumstances do customer information and business operations constitute “trade secrets” that may be enjoined from use by a former employee ? A recent decision by Justice Elizabeth H. Emerson on this issue serves...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

404 Results
|
View per page
Page: of 17
Cybersecurity

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

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
Sign up using*

Already signed up? Log in here

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.