News & Analysis as of

Restrictive Covenants

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

Real Property, Financial Services, & Title Insurance Update: Weeks Ending November 3 & 10, 2017

by Carlton Fields on

REAL PROPERTY UPDATE FINANCIAL SERVICES UPDATE TITLE INSURANCE UPDATE - Misrepresentation: developer entitled to directed verdict on claims of fraudulent and negligent misrepresentation asserted by condominium association...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

No Tricks, We Treat You to Five Developments in the Intersection of Health Care and Employment Law

by Epstein Becker & Green on

Almost ten months into the Trump Administration, the executive and legislative branches have been preoccupied with attempting to repeal and replace the Affordable Care Act (“ACA”) – but each attempt has thus far proved...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

Illinois Attorney General Wages War Against Low-Wage Non-Competes

by Fisher Phillips on

Last week, the Attorney General of Illinois filed suit against Check Into Cash, LLC, alleging that the payday lender required its low-wage customer service employees to agree to illegal non-compete agreements in violation of...more

We Want Our Neighborhood Back: A North Carolina Homeowners Association's Guide to the Use and Enforcement of Rental Restrictions

by Ward and Smith, P.A. on

Lending you a cup of sugar, offering to watch the kids, or grilling out on a summer afternoon— whatever the activity, our neighbors are a key part of what makes our communities familiar and unique. Neighbors help make a...more

Restrictive Covenants: The Impact on Washington Condo Owners

In 2017, the Washington Supreme Court issued a significant decision related to restrictive covenants affecting condominium units. It reaffirmed the importance of timely challenging of an amendment to condominium covenants, in...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

Continued Employment Isn’t Always Sufficient – Minnesota Requires Additional Consideration For Non-Compete With Current Employee

by Jackson Lewis P.C. on

The Minnesota federal district court recently refused to enforce a non-compete agreement, in part, because the employer failed to establish that the agreement was supported by valuable consideration. The decision, issued on...more

I-16 – Kneeling, Indefinite Leave, DC Updates, Non-Compete Consideration, and Pretty as a Protected Class

by Cozen O'Connor on

This episode discusses kneeling in the NFL/workplace, indefinite leave entitlement, and sufficient consideration for non-competes, provides an update from DC on OT exemptions and class action waivers, and questions whether...more

Employment Flash - September 2017

This edition examines recent labor and employment developments at the U.S. federal, state and local levels, including a Texas district court ruling invalidating the Department of Labor's overtime rule; a New York appellate...more

Departing Employees: Ensuring Protection of Trade Secrets and Intellectual Property

“Knowledge is power” goes the old adage. Well, that is certainly true in the world of business where secret processes, confidential designs, and even a good customer list can give a business a vital commercial edge over its...more

North Carolina Business Court Addresses Consideration Requirement for Covenant Not to Compete

by Nexsen Pruet, PLLC on

In American Air Filter Co., Inc. v. Price, No. 16 CvS 13610, 2017 WL 2797794 (N.C. Super. Ct. June 26, 2017), the plaintiff’s former employee signed an employment agreement that renewed automatically each year. The agreement...more

Referral Sources Can Be A Protectable Interest Under Florida Law

by Jackson Lewis P.C. on

In Florida, non-competition and other restrictive covenant agreements are enforceable to the extent they are tailored to protect a legitimate business interest. On September 14, 2017, the Florida Supreme Court held that a...more

Recent Pennsylvania Court Decision Highlights Enforceability of Non-Solicitation Agreements

Every year, Pennsylvania’s appellate courts seem to issue a handful of decisions addressing the enforceability of non-compete agreements. However, there are relatively few court decisions addressing non-solicitation...more

Kansas Decision Highlights The Perils Of Overreach In Restrictive Covenant Agreements

by Jackson Lewis P.C. on

In a recent decision examining Kansas non-compete law, the United States District Court for the District of Kansas partially granted a company’s motion to enjoin its former employee’s violations of the non-compete and...more

Blog: Non-Competes for California Employees in M&A Deals: Don’t Fudge It

by Cooley LLP on

Post-employment non-compete covenants are generally invalid in California, with certain limited but important exceptions like when a business or associated goodwill is sold and the buyer – as part of the deal – wants to...more

How Coexistence Agreements Work

by Revision Legal on

In trademark law, coexistence agreements are contracts whereby two trademark owners agree to use their similar marks, but agree to limitations. For example, the two owners might agree that their respective goods or services...more

Starting Up – Set Up Part 3

by Bryan Cave on

Part One of this series focused on several of the federal and local filings and registrations that new employers will need to make in preparation for their first hires. In Part Two, we dove into drafting job descriptions and...more

Employers Beware! North Carolina Business Court Establishes New Standard for Consideration for Restrictive Covenants

Restrictive covenants are valuable tools employers can use to protect their proprietary interests. Covenants not to compete and covenants not to solicit an employer’s clients or employees are the most common forms of...more

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