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December 1, 2023 By: Leah Lively California Business and Professional Code sections 16600 to 16607 already invalidate agreements restricting California employees from pursuing any lawful profession, trade, or business, with...more
In September, California created a cause of action whereby employees may challenge non-compete agreements and win damages and attorney’s fees (see our prior post on “New Golden State Law to Create Gold Rush Litigation Testing...more
As we’ve previously written, California already takes a strong position against employee noncompete agreements. State law bans such agreements (with extremely limited exception) and imposes significant penalties on employers...more
Employers who sign employees up to noncompetition agreements or other restrictive covenants or seek to enforce the agreements — even when employees enter into the agreements outside California in a state where the...more
A Florida Circuit Court judge sternly rebuked two former employees of a private South Florida provider of Autism treatment services who began competing illegally with a new employer – while still employed with their old...more
On June 7, 2023, the New York State Senate passed Bill No. S03100 (the “Bill”), which would impose a blanket ban on employee non-competition agreements in New York. The Bill defines a “non-compete agreement” as: any...more
As a cautionary tale, in Accounteks.Net, Inc. v. CKR Law, LLP, and Christian Montes, the New Jersey Appellate Court ruled on May 9, 2023, that, under an exception to the American Rule, a third party can be liable for...more
Following a nationwide trend, New Jersey recently joined a growing list of states seeking to limit the use of non-compete and non-solicitation agreements by employers. On May 19, 2022, the New Jersey Assembly’s Labor...more
In what appears to be the largest attorney fee award against a political campaign or president, an arbitrator ordered Donald J. Trump for President, Inc. to pay $1.3 million in legal fees and $17,300 in costs to former White...more
Illinois recently passed legislation amending the Freedom to Work Act (the “Act”), following a growing trend of states imposing greater restrictions on employers’ use and enforcement of non-competition and non-solicitation...more
Can an employee working for an Illinois company bust their non-compete by resigning after 1 year and 364 days of employment? The new year brought with it an attempt by the State of Illinois to resolve that question with a...more
On August 13, 2021, Illinois Governor JB Pritzker signed into law Senate Bill (SB) 672, an amendment to the Illinois Freedom to Work Act. While the law codifies substantive Illinois common law on restrictive covenants, it...more
As changes in restrictive covenants laws sweep the nation, Nevada is one of the latest jurisdictions to update its non-compete statute. Last month, the state legislature amended the Nevada Unfair Trade Practices Act to add...more
Important amendments to Nevada’s non-compete statute, NRS 613.195, recently were enacted when Nevada Governor Steve Sisolak signed into law Assembly Bill 47. Because A.B. 47 does not have a specified effective date, it will...more
Effective May 25, 2021, the State of Nevada enacted amendments to the Nevada Unfair Trade Practice Act that address non-compete agreements. Prior to the new amendments, Nevada law provided that a non-competition covenant is...more
The next state in our series exploring non-compete agreements is Texas’ neighbor to the east, Louisiana. As I like to say, when you travel east and cross the Sabine River from Texas to Louisiana all the words change but the...more
Welcome to The Franchise Memorandum by Lathrop GPM, formerly known as The GPMemorandum. Below are summaries of recent legal developments of interest to franchisors. Given the widespread and evolving impact of the COVID-19...more
Ohio Federal Court Awards Damages to Matco for Breach of Contract, Trademark Infringement, and Misappropriation of Trade Secrets - A federal court in Ohio has granted a franchisor’s unopposed motion for summary judgment...more
Bass, Berry & Sims attorney Chris Lazarini outlined a court’s decision to uphold a permanent injunction against a broker finding the appellate rules do not allow for an appeal as a matter of right. In this case, a bank sought...more
Washington is the most recent state to adopt a law restricting the use of noncompetition agreements. The new law (HB 1450), which was signed by Governor Jay Inslee on May 8, 2019 and is scheduled to go into effect on January...more
Challenges remain in enforcing covenants not to compete under Texas law, despite a trend since 2006 from Texas Supreme Court decisions that have approved covenants....more
Two years ago, we wrote about a noncompete decision in which a special referee found a business seller had breached a sales agreement by violating both a noncompete covenant and an exclusive sales provision contained in the...more
In 2016 we wrote about a non-compete decision where special referee found that a seller of a business had breached a sales agreement by violating both a non-compete covenant and an exclusive sales provision contained in the...more
Imagine this scenario: Your company is in Arizona and one of your sales representatives goes to work for a competitor. He knows all about your pricing and bidding practices, so he helps your competitor undercut your prices....more
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