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For decades, California has taken arguably the most pro-employee-mobility position on noncompetition and non-solicitation agreements in the country – generally, post-employment noncompetition and non-solicitation agreements...more
Parties in Criminal No-Poach Case Reach Pre-Trial Resolution - Recently, the parties in United States v. Hee notified District Court Judge Boulware of the District of Nevada that they reached a preliminary plea deal. The...more
On July 9, 2021, as part of an executive order announced to promote competition and increase wages for workers, President Biden directed the Federal Trade Commission to consider two key areas affecting employers: first, “to...more
In Ixchel Pharma, LLC v. Biogen, Inc., S256927, 2020 WL 4432623 (Cal. Aug. 3, 2020) (“Ixchel Pharma”), the Supreme Court of California clarified two points: (1) that to state a claim for interference with an at-will contract...more
When an ex-employee goes to a competitor or starts poaching clients or staff, employers often look to a restraint of trade clause to protect key business assets such as client relationships or company confidential...more
On July 3, 2019, in a long-awaited judgment the Supreme Court of the United Kingdom clarified the correct approach to deciding whether words can be severed from a post-employment covenant to leave an employee bound by the...more
Effective October 1, 2018, employers in Massachusetts, Rhode Island, and other states seeking to hold Massachusetts employees to noncompete agreements must meet the requirements of a new law passed by the Massachusetts...more
The hiring of your key employees by another business that you have a relationship with — either individually or en masse — can be devastating. It is therefore not uncommon for businesses to insert provisions in contracts...more
This edition of Employment Flash looks at developments in labor and employment law, including with respect to restrictive covenants; new state anti-harassment laws; minimum wage increases; age bias claims; and the employee...more
Two high-end, off-price fashion brands are duking it out over an employee jumping ship from Century 21 Department Stores, LLC to Rue Gilt Groupe. On November 5, 2018, Century 21 sued Rue Gilt Groupe and Berenice Arcuri in...more
This is the case now more than ever given that the Supreme Court of Victoria’s decision in Just Group Limited v Peck [2016] VSC 614 (later affirmed on appeal) has arguably raised the bar for correctly drafting an effective...more
Back in 2015, we covered the divided holding of the Ninth Circuit in Golden v. California Emergency Physicians Medical Group, that a “no re-hire” provision in a settlement agreement could constitute a restraint of trade in...more
Given California's hostility to non-compete agreements, it is easy to lose sight of the fact that other states don't have the same attitude. In neighboring Nevada, the courts will look to whether the restraint on competition...more
On April 9, 2018, the producer of the Soul’d Out music festival in Portland, Oregon, sued the owners and producers of the Coachella music festival in California for what it alleges are anticompetitive contract terms that...more
Coachella Valley Music and Arts Festival owner Anschutz Entertainment Group Inc. (“AEG”) and its subsidiaries and affiliates were hit with a lawsuit for allegedly using anticompetitive practices such as prohibiting artists...more
A client recently asked us to draft a non-competition agreement that would prevent entry level machinists from working for a competitor for one year following their departure from employment. When we asked the client about...more
Drafting and enforcing post-employment restraints has a lot in common with good medicine. It is necessary to prescribe only the “minimum effective dose” – the amount necessary to produce the desired outcome with minimum...more
In a case of first impression, the Wisconsin Court of Appeals held that anti-poaching provisions in post-employment restrictive covenants are subject to the statutory regulations that govern noncompete agreements in...more
Analyzing an anti-poaching agreement as a non-compete agreement, a Wisconsin Court of Appeals has confirmed that a former employee’s agreement not to solicit other employees may be void and unenforceable if it is too broad....more
The Michigan Antitrust Reform Act (MARA) contains a specific provision, MCL 445.774a, that governs the enforceability of noncompete agreements between employees and employers. MARA does not, however, provide standards for...more
In Bartholomews Agri Food Ltd v Thornton [2016] EWHC 648 (QB), the High Court considered whether a non-compete post-termination restriction was an unlawful restraint of trade. Bartholomews Agri Food Ltd (Bartholomews)...more
Seyfarth Synopsis: Limitation on an actor’s ability to work in certain films struck down as an unlawful restraint of trade. California, mecca of the film and media production industries in the U.S., is notorious for...more
The Louisiana Third Circuit Court of Appeal recently issued an opinion that might pave the way for employers to use liquidated damages as a means of discouraging competition by former employees in certain circumstances. ...more
Free trade, in theory, increases competition. Competition forces innovation, higher productivity, better quality, lower prices or some combination of these elements to allow the marketplace to provide suitable options for...more