News & Analysis as of

Restrictive Covenants Forfeiture

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

Potential Impact of the FTC’s Noncompete Ban on Employee Benefits and Executive Compensation

The Federal Trade Commission’s (FTC) ban on noncompetition covenants (“noncompetes”) could significantly impact the design and administration of employee benefits and executive compensation arrangements....more

Smith Gambrell Russell

FTC Rule Banning Most Non-Competes Would Outlaw Forfeiture Provisions

Smith Gambrell Russell on

The Federal Trade Commission (“FTC”) recently issued a Final Rule (the “FTC Rule”) that, unless invalidated by the courts, will soon prohibit most non-compete provisions. In its current form, the FTC Rule will cover not...more

Kohrman Jackson & Krantz LLP

FTC’s Final Rule on Non-Compete Clauses: Implications & Considerations

FTC RULE BANS NON-COMPETE CLAUSES FOR NON-SENIOR EMPLOYEES - Non-compete clauses have long been a contentious issue in employment agreements, with concerns raised about their potential to stifle competition and limit...more

Proskauer - Law and the Workplace

Delaware Supreme Court Validates Forfeiture-For-Competition Provision in Unanimous Reversal of Chancery Court

In a win for businesses that rely on restrictive covenants to protect their assets and investments, on January 29, 2024, the Delaware Supreme Court unanimously reversed a Chancery Court decision that invalidated a...more

Paul Hastings LLP

Delaware Chancery Court Invalidates Restrictive Covenants and Forfeiture Provision In Partnership Agreement As Unreasonable

Paul Hastings LLP on

The Delaware Chancery Court recently invalidated restrictive covenants in a limited partnership agreement, finding the covenants to be “facially overbroad” and declining to “blue pencil” those provisions. Significantly, the...more

Spilman Thomas & Battle, PLLC

An Argument for the Use of Stock Options with Forfeiture Clauses for Breach of Duty of Loyalty

Introduction Jimmy John’s In 2014, Emily Brunner (“Brunner”) and Caitlin Turowski (“Turowski”) filed a complaint in Illinois against the sandwich company, Jimmy John’s, and its franchise affiliates. The complaint was amended...more

Cozen O'Connor

Texas Supreme Court Draws Distinction Between Loyalty Agreement and Non-Compete

Cozen O'Connor on

In many industries, it is common to pay incentives in the form of restricted stock options payable in the future if certain conditions are satisfied. In Exxon-Mobil v. Drennen, decided on August 29, 2014, the Texas Supreme...more

Littler

Texas Supreme Court Rules for Exxon: A New Day for Noncompete-Triggered Forfeitures in Texas?

Littler on

On August 29, 2014, the Texas Supreme Court in Exxon Mobil Corp. v. Drennen upheld a noncompete-triggered forfeiture provision in an executive compensation plan that applied New York law. This is a landmark decision in a...more

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