Effective today, Aug. 10, 2022, the Colorado Legislature’s significant changes to the state’s noncompetition and restrictive covenants statute become effective. The Restrictive Employments Agreement Act (“Act”) (HB 22-1317)...more
In order to be enforceable, must be reasonable in both the duration and scope. Duration refers to the length of time for which a noncompete agreement remains valid and enforceable. Scope, on the other hand, refers to the...more
Oregon law on permitted covenants not to compete has been amended to void nonconforming agreements and limit such agreements to employees making at least $100,533, among other changes...more
A U.S. Court of Appeals upheld a federal district court decision partly granting a preliminary injunction sought by a companionship and domestic care services franchisor against a former franchisee, for violating the...more
Louisiana’s amended non-competition statute (La. R.S. 23:921), which meaningfully expands the application of employment-related non-compete restrictions within the state, went into effect on August 1, 2020. This amendment...more
Franchisors and franchisees in California have long conducted themselves based on precedent that voids post-termination covenants against competition in a franchise agreement in California. Recently, a franchisor’s ability to...more
A recent Delaware Chancery Court opinion has elucidated Delaware’s approach to judicially modifying, or “blue-penciling,” overly broad noncompete agreements and deferring to parties’ choice of law provisions. The case, FP UC...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
A non-compete agreement, which is often referred to as a “restrictive covenant,” attempts to preclude an employee from working for a competitor or undertaking a new business venture that would compete with a former employer....more
In Arizona, non-compete agreements may be enforceable if “reasonable.” In determining whether a non-compete is “reasonable,” courts evaluate several factors, none of which are controlling. The factors are....more
Many Arizona employees are often subject to non-compete agreements, or “covenants,” in which the employee agrees in advance to not compete with his or her employer for some time after leaving or being terminated by the...more
Washington Gov. Jay Inslee recently signed House Bill 1450, which limits the enforceability of noncompete clauses in written and oral employment contracts between employers on one hand and employees and independent...more
Effective October 1, 2018, employers in Massachusetts, Rhode Island, and other states seeking to hold Massachusetts employees to noncompete agreements must meet the requirements of a new law passed by the Massachusetts...more
Washington is the most recent state to adopt a law restricting the use of noncompetition agreements. The new law (HB 1450), which was signed by Governor Jay Inslee on May 8, 2019 and is scheduled to go into effect on January...more
Employment law is a dynamic practice area in which new law develops each year. Last year was no exception. This article, originally published in Nevada Lawyer by Matthew L. Durham and Chad D. Olsen, discusses notable...more
An ex-franchisee of a vehicle transportation and shipping management franchise was enjoined by a federal court, for two years, from operating a competitive business at its former location in Virginia or anywhere the...more
The New York State Office of the Attorney General (“NYAG”), working with the Illinois Attorney General, announced on September 18, 2018 that it had reached a settlement with WeWork Companies, Inc. (“WeWork”) regarding its use...more
On September 18, 2018, Illinois Attorney General Lisa Madigan and New York Attorney General Barbara Underwood reached a settlement with WeWork a shared offices company that provides services around the world. Illinois and New...more
California has long led the nation in its disdain for noncompetition agreements. Pressed by venture capitalists who believe that this gives California an advantage over other states, the Massachusetts legislature has finally...more
In this episode of The Proskauer Brief, senior counsel Harris Mufson and associate Samantha Regenbogen discuss significant reforms to Massachusetts law that will apply to non-competition agreements as well as adopting the...more
On August 10, 2018, Massachusetts Governor Charlie Baker passed a bill making significant reforms to Massachusetts’ law regarding non-compete agreements, as well as adopting the Uniform Trade Secrets Act (“UTSA”) (joining 48...more
Although rules against broad geographic restrictions in non-compete agreements may be outmoded or “hopelessly antiquated” in this digital age (see Accelerated Care Plus Corp. v. Diversicare Mgmt. Servs. Co., No....more
The general rule in the United States has historically permitted non-competition agreements when they are reasonable in time and geographic scope. California has been the leading exception. Business and Professions Code...more
There is no question that noncompete agreements in California employment contracts are generally unenforceable. Many other states, however, may enforce such agreements if they are “reasonable” in duration and geographic...more
Although Georgia’s Restrictive Covenants Act has been on the books since the spring of 2011, no judge has decided the exact scope of Georgia courts’ blue-penciling abilities – until now....more