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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
For decades, California has taken arguably the most pro-employee-mobility position on noncompetition and non-solicitation agreements in the country – generally, post-employment noncompetition and non-solicitation agreements...more
In a recent opinion, the Fairfax Circuit Court deemed unenforceable the non-compete and employee non-solicitation provisions of two doctors who had performed work for the United States Army on behalf of a government...more
In January 2020, Judge John Tran of the Fairfax County Circuit Court in Virginia held unenforceable non-competition and non-solicitation provisions in a government contractor’s consulting agreements entered into with...more
Non-compete restrictions for key stakeholders are common in shareholders' agreements. In Guest Services Worldwide v Shelmerdine, the Court of Appeal upheld a 12-month post-departure restriction, rejecting arguments that...more
Refusing to enforce a non-solicitation provision that violated public policy, the Colorado Court of Appeals held that parties to a non-solicitation agreement cannot contractually obligate the court to “blue pencil” the...more
Maryland has become the latest state to revise its noncompetition law to clamp down on the practice and further restrict the types of workers permitted to be bound by such restrictive covenants. On May 25, 2019, SB 328...more
In addition to the typical reasonableness argument and other defenses against the enforcement of employment noncompetition covenants, in some cases courts will invalidate these agreements based on a public policy argument....more
The hiring of your key employees by another business that you have a relationship with — either individually or en masse — can be devastating. It is therefore not uncommon for businesses to insert provisions in contracts...more
Two years ago, we wrote about a noncompete decision in which a special referee found a business seller had breached a sales agreement by violating both a noncompete covenant and an exclusive sales provision contained in the...more
Non-solicitation agreements are commonly used by employers to restrict former employees from soliciting clients following termination of the employment relationship. Courts throughout the country have different takes on the...more
• Massachusetts Gov. Charlie Baker recently signed into law the Massachusetts Noncompetition Agreement Act (Act), governing noncompetition agreements signed on or after Oct. 1, 2018, by employees and independent contractors...more
Last month, the New Jersey State Senate introduced Senate Bill 3518 (the “Bill”), which, if passed, will severely restrict the use and enforceability of employee non-compete agreements in the state of New Jersey. Most...more
In the first decision to reach the Nevada Supreme Court on whether state district courts may modify or “blue pencil” non-competition agreements, the high court has concluded that doing so would violate Nevada law. Golden Road...more
Nevada, unlike California, applies a reasonableness test to non-compete agreements. Although the Nevada courts haven’t identified a specific heuristic to be followed, a covenant not to compete will be found to be...more
One of an employer’s first steps in a suit against a former employee to enforce a restrictive covenant is to seek a preliminary injunction to prevent the employee from continuing to violate his or her contractual obligations....more
In a blow to New York employers who wish to enforce restrictive covenants under other state law, the New York Court of Appeals recently held that the Florida choice of law provision in an employment agreement was...more