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Restrictive Covenants Employer Liability Issues Former Employee

Mayer Brown

Germany: Restrictive Covenants

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AT A GLANCE - Employees in Germany are subject to statutory non-competition and non-solicitation obligations during an employment relationship. Similar statutory restrictions apply to directors and board members as long as...more

Mayer Brown

China: Restrictive Covenants

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AT A GLANCE - The only post-employment restrictive covenant explicitly stipulated under the People’s Republic of China’s (PRC) labour laws is the non-compete restrictive covenant. The employer and the employee may agree on...more

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

FTC’s Ban on Non-Compete Agreements: Definitions, Prohibitions, Requirements, and Employer Considerations

On May 7, 2024, the Federal Trade Commission (FTC) published a final rule that effectively bans all non-compete agreements between employers and “workers” as “unfair method[s] of competition” and requires employers to refrain...more

Fenwick & West LLP

FTC Bans Employment Noncompetes

Fenwick & West LLP on

On April 23, 2024, the Federal Trade Commission (FTC) voted 3-2 to adopt a final rule broadly banning post-employment noncompete agreements. This federal ban prohibits for-profit employers from entering into noncompete...more

Baker Donelson

The End of Non-Competition Agreements? Not so Fast!

Baker Donelson on

The Federal Trade Commission (FTC) issued a final rule in a partisan 3-2 vote on April 23, 2024 prohibiting employers from binding most American workers to post-employment non-competition agreements (the "Final Rule")....more

Quarles & Brady LLP

Employers Have New Obligations Under Statute Regulating Noncompete Agreements

Quarles & Brady LLP on

As discussed in a prior alert, newly-enacted California laws governing noncompete agreements require employer action by February 14, 2024. This alert explains the purpose of the new laws, what the notification requirement...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

Burns & Levinson LLP

Employers Must Give Notice to Current and Certain Former California Employees of Void Noncompete by February 14, 2024, or Risk...

Burns & Levinson LLP on

Many companies have ceased using noncompete clauses for employees working in California. At best the clauses have become unenforceable, at worst, a liability for the company....more

Seward & Kissel LLP

Employment Litigation Roundup: December 2023

Seward & Kissel LLP on

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

Vedder Price

Major Changes Proposed to Non-Competes in the UK

Vedder Price on

Hot on the heels of the Federal Trade Commission (“FTC”) proposal for a complete ban on non-competes, the UK Government has announced its intention to limit the length of non-compete clauses to three months....more

Seyfarth Shaw LLP

Golden State Crackdown on Non-Competes: California Enacts Second Non-Compete Law To Curtail Use of Non-Competes With Employees

Seyfarth Shaw LLP on

California has done it again! We reported last month concerning California’s new non-compete law that furthers the state’s protections for employee mobility and seeks to void out of state employee non-compete agreements....more

Troutman Pepper

Seventh Circuit Revives McDonald's Employee No-Poach Litigation

Troutman Pepper on

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

Seyfarth Shaw LLP

New California Non-Compete Law Furthers the State’s Employee Mobility Protections and Seeks to Void Out of State Employee...

Seyfarth Shaw LLP on

On September 1, 2023, California Governor Gavin Newsom signed legislation that furthers the state’s protections for employee mobility and seeks to void out of state employee non-compete agreements. Specifically, the new law...more

CDF Labor Law LLP

New Golden State Law To Create Gold Rush Litigation Testing Non-Compete Agreements

CDF Labor Law LLP on

For over two decades, California law concluded non-compete agreements are not enforceable in the context of employment, Edwards v. Anderson, 44 Cal.4th 937 (2008) and even created a public policy claim against employers...more

Littler

California Reaches Across State Lines to Invalidate Employee Non-Compete Agreements

Littler on

We are in the final stretch of the California legislature’s first year of a two-year session. One bill that sped through the legislative process—without any registered opposition—is Senate Bill 699, which extends the state’s...more

CDF Labor Law LLP

California Assists New York Employees in No-Poach Case

CDF Labor Law LLP on

A private class-action complaint claimed that the department store, Saks, and several luxury brands (including Louis Vuitton, Loro Piana, Prada, Brunello and Fendi) violated Federal Antitrust laws when they agreed that each...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

Allen Matkins

Pre-Merger Non-Solicitation Ban Yields No Antitrust Claim

Allen Matkins on

It is rare that for an employer to instruct its employees not to try to lure aware a competitor's customers.  It is rarer still when an employer fires an employee for doing so.  These may be rare events, but apparently (or at...more

Poyner Spruill LLP

Another Reason to Revisit Non-Competes: New Risk of NLRA Charges

Poyner Spruill LLP on

Following the recent declaration that certain confidentiality and non-disparagement clauses in severance agreements are unlawful, the National Labor Relations Board (NLRB) General Counsel released a memo on May 30, 2023 (GC...more

Shumaker, Loop & Kendrick, LLP

Client Alert: NLRB Announces that many Non-Compete Agreements are now in Violation of Federal Law

Shumaker recently published a Client Alert about the Federal Trade Commission’s (FTC) proposed rule essentially banning the use of non-competition agreements. In that Alert we advised clients that they should take a “wait and...more

Epstein Becker & Green

Ohio Appellate Court Holds Logistics Company was Improperly Limited to Half a Remedy, Reviving Noncompete Suit Against a Former...

Epstein Becker & Green on

The day after obtaining federal brokerage authority for the logistics company he formed a month earlier, Christopher Johnson, a North Carolina resident, resigned from his employment with Cincinnati-based Total Quality...more

Littler

UK Follows US FTC Proposal and Issues its Own Non-compete Proposals

Littler on

The UK government on May 10, 2023, announced its intention to limit the length of post-employment non-compete clauses (i.e., restrictions prohibiting an employee from going to work for a competitor or to start a rival...more

Shumaker, Loop & Kendrick, LLP

Client Alert: Your Non-Compete Might Not Be Enforceable For Much Longer

Whether you are an employer attempting to maintain and enforce non-compete provisions in contracts with your employees, or an employee trying to navigate career developments despite being subject to such a provision, you need...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

Polsinelli

More Signs of Trouble for Non-Compete Agreements

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Non-compete agreements have had a rough 2023, most recently with President Biden specifically calling them out on Tuesday evening during his State of the Union and emphasizing his Administration’s opposition to them.  This,...more

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