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Jenner & Block

Delaware Supreme Court Reaffirms Reluctance to Blue-Pencil Overbroad Restrictive Covenants in Sunder v. Jackson

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The Delaware Supreme Court’s decision in Sunder Energy, LLV v. Jackson, No. 455, 2023, 2024 Del. LEXIS 407 (December 10, 2024) reaffirmed the courts’ limited willingness to modify or “blue-pencil” overbroad restrictive...more

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

Ontario Court Reaffirms Importance of Clear and Compliant Language in Employment Agreements

In December 2024, the Court of Appeal for Ontario released its highly anticipated decision in Dufault v. Ignace (Township). The three-judge panel determined that the “for cause” termination clause contained in the employee’s...more

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

California Appellate Decision Raises New Considerations for Arbitration Agreements

A California appellate court recently denied a motion to compel arbitration, finding the agreement unconscionable in part because it (1) applied to all claims rather than just those arising from employment, (2) was unlimited...more

Epstein Becker & Green

Red Pencil, Blue Pencil, or Something In Between? Ohio Court of Appeals Declines to Modify Overbroad Non-Competition Agreement

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Ohio has long recognized the enforceability of non-compete agreements. Broadly speaking, a court can do one of three things with an unenforceable non-compete agreement: (1) the court can apply the “red pencil” doctrine and...more

Littler

Ontario, Canada Court Finds Termination Clauses in Fixed-Term Employment Agreement Unenforceable

Littler on

In Dufault v. The Corporation of the Township of Ignace, 2024 ONSC 1029, the Ontario Superior Court of Justice held that the termination provisions of a fixed-term employment contract were illegal and unenforceable because...more

Parker Poe Adams & Bernstein LLP

New California Law Requires Notice to Employees About Void Noncompetes

Most employers know that California has for decades prevented enforcement of employee non-competition and customer non-solicitation agreements. Some companies with California operations modify their agreements with employees...more

Lathrop GPM

California Federal Court Declares Arbitration Clause Unenforceable

Lathrop GPM on

In Munoz, v. Earthgrains Distribution, LLC, 2023 WL 5986129 (S.D. Cal. Sept. 13, 2023), the plaintiffs, members of a class of independent distributors of baked goods for Earthgrains and other bakeries, alleged that they were...more

Holland & Knight LLP

California's New Nationwide Focus on Noncompetition Agreements

Holland & Knight LLP on

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

Stikeman Elliott LLP

Fixed in Stone - Fixed Term Remains Secure Despite Invalid Termination Clause

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The Ontario Superior Court of Justice recently released its decision in Kopyl v Losani Homes (not yet cited) (the “Decision”), providing insight into the enforceability of fixed terms in employment agreements in circumstances...more

Stikeman Elliott LLP

“Fixing” the Term of Employment: Fixed-Term Agreement defends against Wrongful Dismissal Claim

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In the recent Steele v. The Corporation of the City of Barrie, 2022 ONSC 7245 decision (“Steele”), the Ontario Superior Court of Justice provided some insight into when longer term fixed-term contracts can be enforceable....more

Lathrop GPM

New #MeToo Law Targets NDAs

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Employers should be aware of recent updates regarding two #MeToo-related federal laws: the Speak Out Act and the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act....more

Holland & Knight LLP

FTC Moves to Ban Non-Competes: What Employers Need to Know Now

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The Federal Trade Commission (FTC) proposed a rule on Jan. 5, 2023, prohibiting non-competition clauses ("non-competes") in employment agreements. For purposes of the rule, non-compete provisions include explicit and de facto...more

Littler

Ontario, Canada Court Decides Employment Contract’s Unenforceable Confidentiality and Conflict-of-Interest Clauses Invalidated All...

Littler on

Two years ago in Waksdale v. Swegon North America Inc., 2020 ONCA 391,  the Ontario Court of Appeal established the proper method for determining whether a termination clause in an employment agreement is enforceable. ...more

Kohrman Jackson & Krantz LLP

Suing A Former Employee Under An NDA Has Substantial Risks… Even If You’re Donald Trump

In what appears to be the largest attorney fee award against a political campaign or president, an arbitrator ordered Donald J. Trump for President, Inc. to pay $1.3 million in legal fees and $17,300 in costs to former White...more

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

Louisiana Appellate Court Reminds Employers of the Strict Rules for Enforceable Noncompete Agreements

Advanced Medical Rehab, L.L.C. (AMR), is a marketing company that represents several medical clinics in Louisiana and markets the medical services of those clinics to personal injury law firms. When AMR learned that Shelby...more

Franczek P.C.

Employers: Restrictive Covenant Reform Is Coming to Illinois in 2021

Franczek P.C. on

Recently, the Illinois General Assembly passed legislation significantly amending the Illinois Freedom to Work Act, which governs the legality and enforceability of non-compete agreements and other post-employment restrictive...more

Littler

Ontario, Canada Court Reminds Employers that Improperly Drafted Restrictive Covenants are Unenforceable

Littler on

In Labrador Recycling Inc. v. Folino, 2021 ONSC 2195 (Labrador Recycling), Ontario’s Superior Court denied an employer’s motion for an urgent injunction to restrain its former employee from competing with it contrary to the...more

Saiber LLC

SDNY Rules that Trump Campaign Non-Disclosure is too Broad to Enforce

Saiber LLC on

In another strike against restrictive covenants in employment contracts, Judge Paul G. Gardephe of the Southern District of New York ruled in Jessica Denson v. Donald J. Trump For President, Inc. that the non-disclosure and...more

Littler

Nevada Supreme Court Rules Courts May Blue-Pencil Unreasonable Noncompetition Agreements if the Agreement Includes Modification...

Littler on

On December 31, 2020, the Nevada Supreme Court issued an opinion addressing and clarifying several issues relating to the power of the court to reform or modify an unreasonable noncompetition agreement often referred to as...more

Kramer Levin Naftalis & Frankel LLP

Mark Your Calendars, New York Employers: A Look at the 2020 Effective Dates for Employment-Related Legislation

2019 brought a number of important changes in the law that warrant the attention of New York employers. Start off the new year right and ensure your calendars are up to date by including the 2020 effective dates of these New...more

Epstein Becker & Green

Court to Consider Whether California Ride Share Drivers Who Make Airport Runs Are Exempt from the Federal Arbitration Act

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On November 26, 2019, San Francisco Superior Court Judge Richard B. Ulmer ruled that the Federal Arbitration Act (“FAA”) might not apply to Uber drivers who are engaged in interstate commerce while driving passengers to or...more

Parker Poe Adams & Bernstein LLP

North Carolina Courts Defeat Another ‘Overbroad' Noncompete

In recent years, North Carolina courts have become increasingly resistant to enforcing noncompetition and non-solicitation restrictions they view as insufficiently narrowed to the specific competitive threat presented by the...more

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

Are You in Compliance? Rhode Island and New Hampshire Restrict Noncompetition Agreements

As 2020 approaches, employers in New England may want to review their noncompetition agreements to determine whether they comply with recently enacted laws in Rhode Island and New Hampshire. In 2019, both states passed laws...more

Smith Debnam Narron Drake Saintsing & Myers,...

Employers, Beware! United States Senate Introduces Bill to Limit Enforceability of Covenants Not to Compete

Effectively drafted restrictive covenants are valuable tools employers can utilize to protect their proprietary interests. Covenants not to compete and covenants not to solicit an employer’s clients or employees are the most...more

BCLP

NDAs: The EHRC calls for employers to make important changes to their practices with settlement agreements

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The Equality and Human Rights Commission has issued guidance on the use of confidentiality provisions in discrimination cases. The guidance, if followed in its entirety, would mean employers significantly changing the way...more

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