News & Analysis as of

Restrictive Covenants Employer Liability Issues Employment Litigation

Orrick, Herrington & Sutcliffe LLP

Monthly Highlights – UK Employment Law – August 2024

Here is a look at recent developments in UK employment law...more

Fisher Phillips

Workplace Law Update: 10 Essential Items on Your September To-Do List

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It’s hard to keep up with all the recent changes to labor and employment law, especially since the law always seems to evolve at a rapid pace. In order to ensure you stay on top of the latest changes and have an action plan...more

Troutman Pepper

FTC Noncompete Rule Risks a Wave of State AG Actions

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On April 23, the FTC promulgated its final rule banning noncompetes nationwide. Originally published in Law360 - May 23, 2024....more

Seyfarth Shaw LLP

BREAKING: Federal Judge Rules FTC’s Non-Compete Ban to be Set Aside Nationwide

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This just in: Judge Ada Brown ruled yesterday on the parties’ dueling summary judgment motions – 10 days before her self-imposed deadline to do so – in Ryan LLC v. FTC. Judge Brown granted the plaintiffs’ motion for summary...more

Fisher Phillips

Two Recent Federal Court Decisions Conflict with Exception to FTC Non-Compete Ban: Your 3 Steps for Litigating Accrued Non-Compete...

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Even though the FTC’s impending rule that will ban most non-competition agreements specifically carves out claims for violations that accrue before the rule goes into effect – an exception that many federal courts have...more

Arnall Golden Gregory LLP

Injunction Junction: Judicial Challenges to New Employment Rules

April 2024 saw a whirlwind of activity on the employment front as executive federal agencies issued a wave of new rules. On April 15, 2024, Equal Employment Opportunity Commission (“EEOC”) announced its final rule...more

WilmerHale

Understanding the FTC’s Non-Compete Clause Rule and Its Impact on NDAs

WilmerHale on

As we previously reported, the Federal Trade Commission (FTC) announced on April 23, 2024, its Non-Compete Clause Rule (Final Rule), which aims to ban all new post-employment non-competition restrictions and invalidate most...more

Jenner & Block

NLRB Settles Noncompete Regulatory Action

Jenner & Block on

In May 2023, the General Counsel of the National Labor Relations Board (“NLRB”) published a memorandum stating that an employer who requires a nonmanagerial/nonsupervisory employee to sign a noncompete agreement violates...more

DRI

Non-Compete Clauses and Professional Liability

DRI on

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

Perkins Coie

District of Arizona Evaluates Restrictive Covenants

Perkins Coie on

The U.S. District Court for the District of Arizona recently evaluated the reasonableness of two restrictive covenants—the nonsolicitation of customers and the nonsolicitation of employees—along with claims related to...more

Davis Wright Tremaine LLP

January Surprise: Court Ruling on Post-Employment Restrictive Covenants in Delaware

Equity and capital forfeiture for competition provisions given less scrutiny than other post-employment restrictive covenants - Companies subject to Delaware law were handed a welcome surprise in a recent Delaware Supreme...more

A&O Shearman

New Rules Highlight the Need to Review Employee Forms and Policies

A&O Shearman on

For many companies, the use of “form” employee documents is an efficient practice that ensures consistent treatment. That said, reliance on forms can often breed complacency. In this new year, companies should consider a...more

Littler

Dutch Employer Paid Dearly for an Offer to Buy Out a Non-Compete Clause

Littler on

In a recent matter before the Arnhem-Leeuwarden Appellate Court, an employer in the Netherlands attempted to hold a former employee to his non-compete clause. After the employee had terminated his employment contract, the...more

Seward & Kissel LLP

Employment Litigation Roundup: December 2023

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Delaware court declines to enforce restrictive covenants in LLC agreement but grants interlocutory appeal. In Sunder Energy v. Jackson, et al., a company, Sunder, sued a former employee, Jackson, for breaching a...more

Fisher Phillips

Workplace Law Forecast 2024 - Your workplace law recap for 2023 and predictions for 2024 to help you prepare for the coming year.

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When I reflect on the relationship that our firm has with our clients, I’m most proud of the fact that you can always count on us. That often means defending complex litigation, steering you through regulatory threats,...more

Epstein Becker & Green

You Better Watch Out: The OAG Is Stepping Up Enforcement of D.C.’s Non-Compete Ban

Epstein Becker & Green on

Just over a year into the implementation of the Washington, D.C. Ban on Non-Compete Agreements, as amended by the Non-Compete Clarification Amendment Act of 2022 (together, the “D.C. Non-Compete Ban”), the District of...more

Epstein Becker & Green

Preemption Questions Continue as FTC and NLRB Fight Restrictive Covenants

Epstein Becker & Green on

As federal administrative agencies wade further into rulemaking and adjudicative efforts to outlaw noncompetes and restrictive covenants, defendants are beginning to raise preemption arguments in response to state court...more

Sheppard Mullin Richter & Hampton LLP

Necessity Is the Mother of Invention – But New York Law Says Employers Better Not Take the Credit

On September 15, 2023, New York Governor Kathy Hochul signed a law that made dramatic changes to the enforceability of invention assignment provisions in employment agreements and likely in related agreements including offer...more

Troutman Pepper

California Broadens Restrictions on Noncompete Agreements, Imposes Civil Liability

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Effective January 1, 2024, California will impose civil liability for employers who (1) enter into a contract that includes a noncompete agreement, and (2) attempt to enforce a noncompete agreement — regardless of where and...more

Troutman Pepper

Seventh Circuit Revives McDonald's Employee No-Poach Litigation

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In June of 2022, McDonald’s obtained a judgment on the pleadings, ending antitrust litigation challenging the legality of the no-hire restraints it previously included in its franchise agreements. More than a year later, the...more

Sherman & Howard L.L.C.

[Event] 2023 Labor & Employment Seminar - September 29th, Denver, CO

Join Us for Our Complimentary Annual Labor & Employment Seminar! We recommend our seminar to employers, HR professionals, and inhouse counsel to learn about best practices and the latest updates to Labor & Employment law....more

Seyfarth Shaw LLP

Georgia Maps Out New Requirement for Employee Non-Solicits

Seyfarth Shaw LLP on

On May 11, 2011, Georgia passed the Restrictive Covenants Act, which made enforcing employee restrictive covenants far easier than it was under Georgia common law. In an odd twist, a law that Georgia intended to make it...more

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

Claim Employer Exaggerated Scope of Noncompete Survives Motion to Dismiss in Illinois Federal Court

In a recent decision, a federal trial court in Illinois allowed an employee’s tortious interference claim to continue against his former employer alleging it had exaggerated the reach of a noncompete agreement that he had...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

Buyer Beware: Delaware Courts Continue to Refuse to Enforce Deal-Based Non-Competes

In a blog earlier this year, we discussed the Delaware Chancery Court’s refusal to enforce a sale of business non-compete in Kodiak Building Partners, LLC v Adams. We wondered then whether Kodiak represented a one-off...more

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