News & Analysis as of

Non-Solicitation Agreements

Jones Day

A Growing Trend: Employee Non-Solicitation Provisions Are Under Attack in California and Elsewhere

by Jones Day on

California courts are known for the skepticism with which they approach post-employment restrictive covenants. Until recently, however, they have generally enforced covenants restricting individuals from soliciting their...more

Blank Rome LLP

Third Circuit Indicates Support for Use of Broader Restrictive Covenants in Post-Hire Agreements Rather Than a Uniform Approach at...

by Blank Rome LLP on

We wrote an earlier post about the Third Circuit’s opinion in ADP, LLC v. Rafferty, et al., confirming courts’ blue penciling authority (see here); but the Third Circuit’s analysis of ADP’s two-tiered restrictive covenant...more

Nutter McClennen & Fish LLP

M&A 101: Basic Considerations in Transaction Negotiations

by Nutter McClennen & Fish LLP on

Q: What are the key considerations related to any deal structure? There are four: tax effects, transfer of liability, third party consents, and shareholder approval. Tax effects from transactions can be complex and are...more

Fox Rothschild LLP

Just Signed! New Washington State Law Limits Use Of Non-Competes And No-Poach Agreements

by Fox Rothschild LLP on

Yesterday, Washington’s Governor, Jay Inslee signed HB1450 [PDF] which targets the use of restrictive covenants in the State of Washington (the “Non-Compete Act”). The signing of the Non-Compete Act follows the recent...more

Lane Powell PC

Competition Just Got Stiffer: New Washington Law Changes Non-Compete Landscape

by Lane Powell PC on

Washington businesses who rely on non-compete agreements to prevent employees and consultants from working for a competitor will need to rethink their strategy, thanks to a new state law. The law considerably limits the scope...more

Nilan Johnson Lewis PA

In-House Lawyers Can Be Subjected to Restrictive Covenant Agreements, A Recent Decision Suggests

by Nilan Johnson Lewis PA on

Lawyers generally believe non-competes don’t apply to the profession.  That’s mostly true, including for in-house counsel.  A recent court decision calls this into question....more

K&L Gates LLP

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

by K&L Gates LLP on

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

Blank Rome LLP

Third Circuit Confirms Courts’ Authority to Salvage Over Broad Restrictive Covenants

by Blank Rome LLP on

On April 26, 2019, the U.S. Court of Appeals for the Third Circuit weighed in on a pair of district court rulings which had denied ADP, LLC’s requests for preliminary injunctive relief against two former employees who ADP...more

Garvey Schubert Barer

Washington Employers: Your Non-Competes May Soon Be Nonbinding

by Garvey Schubert Barer on

On April 17, the Washington Legislature approved sweeping new restrictions on employers’ non-competition agreements with their employees and independent contractors. The bill, now headed to the Governor’s desk for his...more

Clark Hill PLC

“Blue Penciling” of Restrictive Covenants is Alive and Well in New Jersey

by Clark Hill PLC on

The enforcement of non-compete and non-solicitation agreements is often fraught with uncertainty. The outcome is highly fact specific and often difficult to predict.  ...more

Perkins Coie

Washington State Poised to Impose Significant Restrictions on Noncompetition Agreements

by Perkins Coie on

Last week, the Washington State Legislature passed a proposal that, once signed into law, will significantly restrict the use of noncompetition agreements in Washington. We fully expect Governor Jay Inslee to sign this law,...more

Hutchison PLLC

Nondisclosure Agreements, Confidential Disclosure Agreements and Confidentiality Agreements

by Hutchison PLLC on

Corporate Nondisclosure Agreement, Confidential Disclosure Agreement, Confidentiality Agreement, NDA, CDA and so on. Regardless of the title, companies sign agreements promising to be quiet on a regular basis. But are all...more

Obermayer Rebmann Maxwell & Hippel LLP

Ripping off the Band-Aid: Considerations for Negotiating Employee Severance

by Obermayer Rebmann Maxwell & Hippel LLP on

Consider the following scenario: you are a company decision-maker and are preparing to terminate a long-time employee. You want to get the employee out the door with as little embarrassing and distracting “drama” and headache...more

Cooley LLP

Alert: Recent California Cases Invalidate Employee Non-Solicitation Provisions

by Cooley LLP on

Many California employers use employee non-solicitation provisions in their employment agreements. These provisions prohibit employees, both during their employment and for one to two years thereafter, from soliciting the...more

Cozen O'Connor

III-42-The New Overtime Rule and Antitrust Issues With Your Non-Competes

by Cozen O'Connor on

This episode outlines the key components of the U.S. Department of Labor’s new proposed overtime rule. Also, antitrust attorney David Reichenberg joins to discuss the antitrust issues that cannot be ignored when looking at...more

McDermott Will & Emery

The Latest: DOJ Distinguishes ‘No-Poach’ Agreements

by McDermott Will & Emery on

WHAT HAPPENED: • The Department of Justice filed a Statement of Interest in three related cases in the Eastern District of Washington yesterday dealing with alleged “no-poach” (or non-solicitation) agreements between...more

Jackson Lewis P.C.

New Jersey Court Offers A Reminder That The Duty Of Loyalty Is Thicker Than Ink

by Jackson Lewis P.C. on

Do employees in New Jersey owe a duty of loyalty to employers, even without a written employment agreement? Eliminating any possible doubt, the New Jersey Appellate Division answered, emphatically, yes....more

McDermott Will & Emery

US DOJ Adds Complexity to Enforcement of “No-Poach” Agreements under Antitrust Law

by McDermott Will & Emery on

On Thursday, March 7, the Antitrust Division intervened in three antitrust class actions to urge the court that no-poach agreements between vertically related firms, such as between franchisor and franchisee, should be...more

Coblentz Patch Duffy & Bass

Another Warning Shot On Employee Nonsolicit Agreements

by Coblentz Patch Duffy & Bass on

It’s time to take another hard look at whether it’s worth it for employers to ask their departing employees not to recruit anyone away after they leave. Nobody wants their former employees to raid the ranks of their current...more

Foley & Lardner LLP

Employers Face Hurdles in Enforcing Non-Competes Against Lower-Wage Workers

by Foley & Lardner LLP on

Employers requiring lower-wage employees to sign and abide by non-competition and non-solicitation of clients provisions may want to find another mechanism to protect business goodwill and confidential information. Courts...more

Weintraub Tobin

Employee Non-Solicitation Provisions Under Attack

by Weintraub Tobin on

Companies have a number of tools available to them to help protect their intellectual property, including trade secret and other proprietary information that give them a competitive advantage. Many employers utilize detailed...more

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

Louisiana Court Finds Nonsolicitation/Noncompetition Agreement Is Enforceable

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

When Jay Baker, the vice president of Causin, L.L.C., quit to create a competing business, Causin sued to enforce Baker’s nonsolicitation/noncompetition agreement. Baker defended the claim in part by arguing the agreement’s...more

McAfee & Taft

Ruling offers guidance for companies seeking injunctions to protect trade secrets

by McAfee & Taft on

Customers, trade secrets, and proprietary information are the lifeblood of any company. For this reason, companies routinely have employees sign confidentiality agreements and, to the extent they are enforceable,...more

McDermott Will & Emery

Aerospace & Defense Series: Antitrust Risks for Aerospace and Defense Contractors in Employment Practices

by McDermott Will & Emery on

As highlighted in a recent lawsuit, aerospace and defense contractors can face various antitrust risks when using certain tactics to prevent other companies from hiring their employees. See Hunter v. Booz Allen Hamilton...more

Constangy, Brooks, Smith & Prophete, LLP

California Snapshot: Don't Place All Your Bets On Employee Non-Solicitation Agreements.

by Constangy, Brooks, Smith & Prophete, LLP on

A bewildering line of cases. For more than 30 years, employers have relied on the California Court of Appeal’s decision in Loral Corp. v. Moyes to support the inclusion of employee non-solicitation provisions in employment...more

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