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Restrictive Covenants Contract Terms Employees

Proskauer - Law and the Workplace

Wyoming Bans Most Non-Compete Agreements

Wyoming just banned most non-compete agreements (Wyo. Stat. § 1-23-108): starting July 1, 2025, most agreements that restrict workers from working in competitive jobs will be void, absent some exceptions for: High-Level...more

Miller Nash LLP

Washington State Proposes Full Ban on Non-Competes

Miller Nash LLP on

With the Federal Trade Commission’s proposed nationwide ban on noncompetes seemingly dead, states continue to march forward with their own regulation of such agreements. Washington’s current law bans noncompetes for employees...more

Hendershot Cowart P.C.

Timeline: What Happens After Breaking a Non-Compete Agreement in Texas

Hendershot Cowart P.C. on

Responding to a Non-Compete Violation - When an employer discovers a potential non-compete violation, they generally react within 1-4 weeks, though this can be shorter if the violation poses an immediate competitive threat....more

Ballard Spahr LLP

Delaware Supreme Court Broadens Utility of Noncompete Enforcement Tool

Ballard Spahr LLP on

In a recent en banc decision, Delaware’s Supreme Court upheld a key tool available to employers to enforce forfeiture-for-competition provisions against former employees. Delaware’s Chancery Court has shown an increasing...more

Proskauer - Trade Secrets

Seventh Circuit Decision Highlights Distinction Between Traditional Non-Compete and Forfeiture-for-Competition

A recent decision by the U.S. Court of Appeals for the Seventh Circuit allowed an employer to enforce a “forfeiture-for-competition” against a former plant manager. The Court explained that, under Delaware law, forfeiture-for...more

Saul Ewing LLP

First Circuit Says Massachusetts Non-Compete Agreement Enforceable in California Despite State’s Ban

Saul Ewing LLP on

Last month, in DraftKings Inc. v. Hermalyn, the First Circuit Court of Appeals issued a decision concerning the application of California’s non-compete ban to agreements formed outside the state. Broadly, the decision...more

Hinshaw & Culbertson - Employment Law...

Impact for Employers: The NLRB General Counsel Doubles Down on Restrictive Covenants and Stay-or-Pay Provisions

The General Counsel of the National Labor Relations Board ("NLRB") issued Memorandum GC 25-01 on October 7, 2024, which establishes her intent to "urge the Board not only to find certain non-compete provisions unlawful, but...more

Brooks Pierce

NLRB General Counsel Doubles-Down on Non-Compete Agreement—and Takes Aim at “Stay-or-Pay” Provisions

Brooks Pierce on

On October 7, 2024, the General Counsel for the National Labor Relations Board (“NLRB”) issued a memorandum offering her perspective on damages employers may face when enforcing allegedly unlawful non-compete agreements, and...more

Thomas Fox - Compliance Evangelist

Addressing Pre-taliation

One of the most talked about subjects in corporate compliance is the issue of pre-taliation—an increasingly common enforcement target by the U.S. Securities and Exchange Commission (SEC). Matt Kelly and I did a recent podcast...more

Troutman Pepper Locke

Water Cooler Talk: Insights on Noncompetes From ‘The Office'

Troutman Pepper Locke on

With the potential for a federal ban on the horizon and increasing restrictions on noncompete agreements at the state level, employers are becoming increasingly hesitant to look to noncompete provisions for protection,...more

Seyfarth Shaw LLP

Amendments To Washington State’s Noncompete Statute Go Into Effect June 6, 2024

Seyfarth Shaw LLP on

Effective January 1, 2020, Washington enacted a noncompete statute which, among other things, required employers to satisfy notice obligations and compensation thresholds to use noncompete agreements with employees and...more

CDF Labor Law LLP

Flowers, Chocolates, or Notice of Noncompete Agreement?

CDF Labor Law LLP on

Many people are contemplating what to give their Valentine in a couple of weeks.   However, California employers that employed California persons under an agreement with a noncompete clause “no matter how narrowly...more

Littler

Global Non-Compete Reform – At a Glance Tracker: January 2024

Littler on

The US is not the only country currently debating a reform to the law on non-competes (see here in relation to federal law and New York). Notably, the UK Government has announced legislation that would limit the duration of...more

Seyfarth Shaw LLP

Georgia Signals Greater Leeway in Revising Overbroad Non-Competes

Seyfarth Shaw LLP on

In a recent decision, the Eleventh Circuit seemed to approve a more forgiving standard for reviewing restrictive covenants. Courts generally have three colors in their markup kit for restrictive covenants. The first—and most...more

FordHarrison

Noncompete News: The More Things Change, the More They Remain the Same: Georgia Supreme Court Addresses Choice of Law Provisions...

FordHarrison on

Historically, Georgia courts have declined to apply another state’s law to determine whether to enforce restrictive covenants against a Georgia employee, regardless of whether the agreement stated that another state’s law...more

Littler

Georgia Court of Appeals: Non-Solicitation-of-Employees Covenant Must Contain Express Geographic Limitation

Littler on

The Georgia Court of Appeals recently provided important clarification of the requirements for non-recruitment covenants under Georgia’s 2011 Restrictive Covenants Act. In North American Senior Benefits, LLC v. Wimmer, 2023...more

Sheppard Mullin Richter & Hampton LLP

7 Key Value-Adding LOI Terms

A well-crafted letter of intent (“LOI”) adds value for the negotiating principals by helping to ensure the parties are in agreement on key deal terms before they spend significant time and money on diligence and definitive...more

Pullman & Comley - Labor, Employment and...

How to Effectively Utilize Noncompete Agreements in a Tight Labor Market

As most employers know, “human capital” is currently a very precious commodity and employers are using legal tactics to retain their star performers. One tool employers often use to try to retain high-value employees is a...more

Nelson Mullins Riley & Scarborough LLP

New Law Changes Non-Compete Landscape for D.C. Employers

The long-awaited Washington, D.C. non-compete and anti-moonlighting law finally went into effect on Oct. 1, 2022. At the end of 2020, the Washington, D.C. Council passed the Ban on Non-Compete Agreements Amendment Act of...more

Polsinelli

District of Columbia Relaxes its Non-Compete Ban to Allow Restrictive Covenants for Certain Employees

Polsinelli on

The District of Columbia Council passed the Non-Compete Clarification Act of 2022 (“Act”) in late July 2022, setting standards for how and when employers can use and enforce covenants not to compete. The Act notably clarifies...more

Sheppard Mullin Richter & Hampton LLP

New Year, New Rules: The District of Columbia’s New Ban on Non-Compete Agreements

On January 11, 2021, D.C. Mayor Muriel Bowser signed the Ban on Non-Compete Agreements Amendment Act of 2020 (the “Act”), which, once effective, will be one of the broadest bans on non-compete agreements in the country. ...more

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