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Restrictive Covenants Contract Terms Employment Litigation

BCLP

HK High Court Refuses to Enforce a 12-month Worldwide Non-compete Covenant

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In Manulife Financial Asia Limited and Kenneth Joseph Rappold & Others [2024] HKCFI 989 (date of decision: 5 April 2024), the Hong Kong High Court refused a company’s application to enforce a 12-month non-compete clause...more

DRI

Non-Compete Clauses and Professional Liability

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Non-compete provisions have long been viewed by employers as reasonable and appropriate velvet handcuffs on departing employees and as an unfair burden on competition by the departing employees. The purpose of non-compete...more

Lathrop GPM

Eleventh Circuit Affirms in Part, Reverses in Part, District Court Determination to Blue Pencil and Enforce Noncompete Agreement

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The Eleventh Circuit Court of Appeals recently affirmed in part, and vacated in part, a district court’s issuance of an injunction preventing a franchisor’s enforcement of a noncompete covenant as written but allowing...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Georgia Appellate Court Says Employee Nonsolicitation Covenant Not Enforceable Without Express Geographic Limitation

In a recent decision, a Georgia appellate panel held that an employee nonsolicitation covenant that limits what parties can do following the end of a business relationship must have an explicit geographic limitation to be...more

Littler

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

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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

Parker Poe Adams & Bernstein LLP

North Carolina Business Court Dismisses Overbroad Non-Compete

When we are asked by a client to review their form employee non-competition agreement, we often see companies using documents found on the internet that were clearly written for use in states other than North Carolina. Last...more

Kohrman Jackson & Krantz LLP

Suing A Former Employee Under An NDA Has Substantial Risks… Even If You’re Donald Trump

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

Littler

Ontario, Canada Court Reminds Employers that Improperly Drafted Restrictive Covenants are Unenforceable

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In Labrador Recycling Inc. v. Folino, 2021 ONSC 2195 (Labrador Recycling), Ontario’s Superior Court denied an employer’s motion for an urgent injunction to restrain its former employee from competing with it contrary to the...more

Saiber LLC

SDNY Rules that Trump Campaign Non-Disclosure is too Broad to Enforce

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In another strike against restrictive covenants in employment contracts, Judge Paul G. Gardephe of the Southern District of New York ruled in Jessica Denson v. Donald J. Trump For President, Inc. that the non-disclosure and...more

Littler

Nevada Supreme Court Rules Courts May Blue-Pencil Unreasonable Noncompetition Agreements if the Agreement Includes Modification...

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On December 31, 2020, the Nevada Supreme Court issued an opinion addressing and clarifying several issues relating to the power of the court to reform or modify an unreasonable noncompetition agreement often referred to as...more

Littler

A Rare Occurrence: California Court Overturns Arbitrator’s Award

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California’s statutory ban on post-employment covenants, which are enforceable in most other states, has bedeviled employers trying to protect confidential information and trade secrets. The state’s Business and Professions...more

FordHarrison

Non-Compete News: Georgia Court Holds Contractor Owes Fiduciary Duty/Duty of Loyalty

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In late 2019, the Northern District of Georgia (Atlanta federal court) addressed the duties owed when an independent contractor leaves one trucking company to work for another. In Wind Logistics Prof’l v. Universal Truckload,...more

Orrick - Trade Secrets Group

Indirect Competition Enough to Enforce Non-Compete Against Former CEO in Pennsylvania

In the midst of nationwide efforts to reform the use of non-compete restrictions, a recent decision from the Eastern District of Pennsylvania illustrates the broad approach courts may take when enforcing restrictive covenants...more

Seyfarth Shaw LLP

Supreme Court of Kentucky Rules That Firms May Require Lawyers to Sign Non-Solicitation Agreements That Exempt Legal Work

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A law firm can terminate an at-will lawyer who refuses to sign an agreement prohibiting them from soliciting the firm’s customers or clients following cessation of employment, according to the Supreme Court of Kentucky. In...more

Faegre Drinker Biddle & Reath LLP

Colorado Court of Appeals Declines to Revise Overly Broad Noncompetition Agreements

Colorado employers may want to consider whether their noncompetition agreements are narrowly tailored to meet their needs or whether some revision may be prudent, in light of a decision rendered by the Colorado Court of...more

Coblentz Patch Duffy & Bass

Another Warning Shot On Employee Nonsolicit Agreements

It’s time to take another hard look at whether it’s worth it for employers to ask their departing employees not to recruit anyone away after they leave. Nobody wants their former employees to raid the ranks of their current...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Louisiana Court Finds Nonsolicitation/Noncompetition Agreement Is Enforceable

When Jay Baker, the vice president of Causin, L.L.C., quit to create a competing business, Causin sued to enforce Baker’s nonsolicitation/noncompetition agreement. Baker defended the claim in part by arguing the agreement’s...more

Genova Burns LLC

"Breaking Contracts has Consequences" - Third Circuit Backs Employer with Restrictive Covenant Agreements

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What happens when your employee signs multiple restrictive covenant agreements with different terms, and then violates them? A recent decision from the Third Circuit in Heartland Payment Sys., LLC v. Volrath addresses a...more

Littler

Unfair Competition: What Happened in 2018, and What's in Store for 2019

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From sweeping legislation to unexpected case law, and everything in between, 2018 brought a lot of changes to unfair competition law....more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Overbroad Geographic Restriction Dooms Covenant Not to Compete

Texas law allows for the enforcement of covenants not to compete that impose reasonable restrictions on competition. Texas courts frequently enforce geographic and other restrictions on a former employee’s ability to compete...more

Nutter McClennen & Fish LLP

SJC Finds Massachusetts Choice of Law Provision Unenforceable as to California Employee

Last month, the Supreme Judicial Court dismissed a suit brought by a Massachusetts employer to enforce a non-compete on its California-based employee on the ground of forum non conveniens. The SJC held that the non-compete’s...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Massachusetts Court Provides Guidance on Choice of Law and Forum Selection Clauses in Restrictive Covenants

With Massachusetts’s comprehensive noncompete law taking effect on October 1, 2018, many employers are reviewing and likely revising their restrictive covenants to ensure that they are compliant with the new law. In...more

Dorsey & Whitney LLP

How Important are Irreparable Injury Provisions in Non-Compete Agreements?

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Today’s workforce is more mobile than in past generations. Long gone are the days when an employee started and ended a career at the same company. ...more

Dorsey & Whitney LLP

Words on the Page: How Important are Irreparable Injury Provisions in Non-Compete Agreements?

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Employers who use non-compete agreements take note: Minnesota courts want to see more than just words in a contract before they will grant injunctive relief against a former employee. This week, the Supreme Court of...more

Littler

Wisconsin Supreme Court Holds That Employee Non-Solicitation Agreements are Subject to a Strict Enforcement Standard

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In Wisconsin, post-employment restrictive covenants are governed by Wis. Stat. § 103.465, requiring that any restrictive covenant be reasonable to be enforceable. Courts interpreting the statute have held that for a...more

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