News & Analysis as of

Restrictive Covenants

Five Important Employment Trends for Massachusetts Retailers in 2018

by Goulston & Storrs PC on

Having survived the holiday shopping season, retailers should begin to prepare for any new employment laws that will go into effect in the coming year (and, of course, should ensure that they are complying with existing...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

Ringing in the New Year -- Recap of Changes to Illinois Employment Laws in 2017

by Faegre Baker Daniels on

From workplace dress policies to collecting an employee’s fingerprints, as we wind down 2017, here’s a recap of new workplace laws—and helpful reminders—that affected Illinois employers this year: Updates to the Illinois...more

Massachusetts Appeals Court Clarifies When Restrictive Covenants May Extend Beyond Thirty Years

by Goulston & Storrs PC on

In Berger, et al. v. 2 Wyndcliff, LLC, et al., No. 16-P-336 (Mass. Appeals Court, Dec. 5, 2017), a group of homeowners in a subdivision subject to an agreement limiting construction on their lots to one single-family dwelling...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

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

Federal Court Rules Against Calzone Franchisor In Meaty Lawsuit Against Former Franchisee

by Seyfarth Shaw LLP on

In a meaty decision involving the intersection of restrictive covenant and franchise law, the United States District Court for the Southern District of Ohio recently denied a request by D.P. Dough Franchising, LLC (“D.P....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

Massachusetts Appeals Court Holds that Restrictive Covenants Created as Part of a Common Scheme May Be Extended Beyond Thirty...

by Mintz Levin on

On December 5, 2017, the Massachusetts Appeals Court issued an important decision in Berger v. 2 Wyndcliff, LLC, No. 16-P-336 (Mass. App. Ct. Dec. 5, 2017), clarifying the extent to which land owners in a common-scheme...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

Banned from January 2018: restrictive contractual clauses limiting client choice on future capital markets and M&A services

by Dentons on

New FCA rules will prevent corporate banks, corporate brokers and investment banks from including in their terms of engagement clauses which give them the right to provide future capital markets and M&A services to clients....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

White County, Arkansas Facility: Arkansas Department of Environmental Quality and Kohler Co. Enter into Elective Site Clean-Up...

The Arkansas Department of Environmental Quality (“ADEQ”) and Kohler Co. (“Kohler”) entered into an October 23rd Elective Site Clean-Up Agreement (“ESCA”). See LIS 17-096. The ESCA addresses a facility located in Searcy,...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

SDNY Denies Approval in FLSA Settlement Based In Part on Overly Broad Non-Disparagement Clause

In its November 17, 2017 opinion in Galindo v. East County Louth, Inc. (No. 16 Civ. 9149), the Southern District of New York denied a motion to approve an individual FLSA settlement, including on the ground that the...more

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