News & Analysis as of

Non-Solicitation Agreements

A Tale of Two Cases: LinkedIn Postings as Solicitations

by Butler Snow LLP on

Recently, two different courts reached two different results in determining whether employees’ LinkedIn postings amounted to a solicitation in contravention of a nonsolicitation agreement. In Bankers Life & Cas. Co. v. Am....more

Food and Beverage Law Update: February 2018

by Holland & Knight LLP on

Deceptive Trade Practices - Meat Exporter Had No Duty Under FCA to Pay for Beef Inspection - In United States ex rel. Barrick v. Parker-Migliorini Int'l, LLC, 878 F. 3d 1224 (10th Cir. 2017), the court affirmed...more

Lessons From The Waymo v Uber Trade Secrets Trial

by Fisher Phillips on

Just hours after the Eagles clinched their upset Super Bowl win over the Patriots, a different battle royale began in a San Francisco courtroom between an established juggernaut and its upstart rival. For techies and trade...more

Careful Drafting Required: Restrictions on Employee Solicitation Subject to Wisconsin Non-Compete Law

Many employers want to prevent their trusted employees from leaving the company and poaching their employees. In Manitowoc Company, Inc. v. Lanning, No. 2015AP1530 (January 19, 2018), the Supreme Court of Wisconsin examined a...more

The Broker Protocol: End of an Era?

by Womble Bond Dickinson on

Morgan Stanley and UBS – two of the largest wirehouses in the United States – recently withdrew from the Protocol for Broker Recruiting Agreement, commonly referred to as the “Broker Protocol.” This move has raised much...more

Wisconsin Supreme Court Applies Non-Compete Law To Invalidate Anti-Poaching Covenant

by Jackson Lewis P.C. on

On January 19, 2018, a divided Wisconsin Supreme Court held that an employee non-solicitation covenant was overly broad and unenforceable under state law. In the decision, entitled The Manitowoc Company, Inc. v. Lanning, Case...more

Wisconsin Employers: Have You Had Your Non-Compete Agreements Reviewed Recently? Recent Court Case Invalidates Non-Solicitation...

by Ruder Ware on

What WI employers need to know: Wisconsin employers must immediately revise their non-compete agreements so as to comply with this recent decision. The Wisconsin Supreme Court has ruled that an employee non-solicitation...more

No-Hire And No-Solicit Covenants Could Be Overcooked

by Fox Rothschild LLP on

Many franchise agreements contain a provision that restricts a franchisee from hiring or soliciting the employees of the franchisor or other franchisees. A class action lawsuit that was recently filed in the Eastern District...more

DOJ to Announce Criminal Enforcement Actions for “No-Poach” Agreements

by Seyfarth Shaw LLP on

Seyfarth Synopsis:  Criminal prosecution of “no-poaching/no-hire” agreements appears imminent.  Employers should investigate their hiring and compensation practices to ensure compliance with recent antitrust pronouncements....more

Wisconsin Supreme Court Holds That Employee Non-Solicitation Agreements are Subject to a Strict Enforcement Standard

by Littler on

In Wisconsin, post-employment restrictive covenants are governed by Wis. Stat. § 103.465, requiring that any restrictive covenant be reasonable to be enforceable. Courts interpreting the statute have held that for a...more

A Protocol On Life Support – Financial Industry Assesses The Aftermath Of Major Defections From Broker Recruitment Pact

by Jackson Lewis P.C. on

In the fourth quarter of 2017, two major financial firms dropped out of an industry-wide Protocol for Broker Recruiting (the “Protocol”), an agreement designed to reduce litigation surrounding the movement of stockbrokers...more

California Dreaming: Pennsylvania’s Proposed “Freedom to Work Act” Aims to Join California in Banning Non-Compete Agreements

by Fisher Phillips on

Late last year, Pennsylvania legislators introduced House Bill 1938, the “Freedom to Work Act” (the “Act”), an outright ban on “covenant[s] not to compete” in Pennsylvania. Under the Act, “a covenant not to compete is...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

Should N.C. Restrictive Covenants Prohibit Solicitation of Prospective Customers?

We routinely encounter language in North Carolina employment contracts that prohibits the employee from soliciting the company’s customers or prospective customers for a period of time following separation from employment. In...more

Criminal antitrust prosecutions still loom for employers with ‘no-poaching,’ ‘wage-fixing’ agreements

by Thompson Coburn LLP on

Agreements to refrain from soliciting another company’s employees (“no poaching” agreements) recently came under increased scrutiny — including the ominous potential for felony charges. A year ago, under the Obama...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

LinkedIn Activity May Violate Non-Solicitation Agreements

by Pepper Hamilton LLP on

Q: A former employee has invited some of her former co-workers and clients to connect on LinkedIn. Is this a violation of her non-solicitation agreement with our company? ...more

Tennessee Court of Appeals Finds that Former Employee Breached Non-Compete Agreement Through Actions of His Subordinates

by Butler Snow LLP on

In November 2017, the Tennessee Court of Appeals upheld a Nashville trial court’s determination that a former employee violated his noncompete agreement by managing employees who solicited competing business in the restricted...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

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

Traps, Pitfalls, and "Gotcha" Moments: 3 Practical Business Contract Tips from Travelzoo GC Rachel Barnett

by JD Supra Perspectives on

Insights from Travelzoo GC, Rachel Barnett, whose new book modernizes contract law and applies legal concepts to the real corporate world....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

Keys to the Kingdom: How Confidentiality Agreements Are Key to Keeping Business Information Secret

by Payne & Fears on

In today’s business environment, greater employee mobility and technological advances underscore the need to protect a company’s confidential information and trade secrets. Stories of employees departing with confidential...more

Georgia Court Of Appeals Confirms Non-Solicitation of Employees Covenant Need Not Have Geographic Or Material Contact Language

by Jackson Lewis P.C. on

As previously noted in Jackson Lewis’ Non-Compete & Trade Secrets Report, Georgia adopted legislation governing restrictive covenant agreements entered into on or after May 11, 2011. This law, however, does not address...more

DOJ Vows Criminal Prosecution of Employee "No Poaching" Agreements

A few years ago, several Silicon Valley employers made news when they were accused of agreeing among themselves not to solicit each other’s programmers and software engineering employees. These employees are in high demand,...more

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