News & Analysis as of

Employment Contract Employees Contract Terms

Littler

Ontario, Canada Court Reinforces Waksdale’s Impact on Enforceability of Termination Provisions and Provides Guidance on Proving...

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In De Castro v. Arista Homes Limited, 2024 ONSC 1035, Ontario’s Superior Court of Justice (Court) held the termination provision in an employment contract was unenforceable because it defined “cause” more broadly than does...more

Hinshaw & Culbertson - Employment Law...

Impact for Employers: The NLRB General Counsel Doubles Down on Restrictive Covenants and Stay-or-Pay Provisions

The General Counsel of the National Labor Relations Board ("NLRB") issued Memorandum GC 25-01 on October 7, 2024, which establishes her intent to "urge the Board not only to find certain non-compete provisions unlawful, but...more

Brooks Pierce

NLRB General Counsel Doubles-Down on Non-Compete Agreement—and Takes Aim at “Stay-or-Pay” Provisions

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On October 7, 2024, the General Counsel for the National Labor Relations Board (“NLRB”) issued a memorandum offering her perspective on damages employers may face when enforcing allegedly unlawful non-compete agreements, and...more

Thomas Fox - Compliance Evangelist

Addressing Pre-taliation

One of the most talked about subjects in corporate compliance is the issue of pre-taliation—an increasingly common enforcement target by the U.S. Securities and Exchange Commission (SEC). Matt Kelly and I did a recent podcast...more

Sterne, Kessler, Goldstein & Fox P.L.L.C.

FTC Issues Final Rule Banning (Almost All) Non-Compete Agreements

On May 7, 2024, the Federal Trade Commission (FTC) issued a Final Rule that renders invalid non-compete clauses in standard employment agreements. 16 C.F.R. § 910. Although some limited exceptions apply, this new regulation...more

Carlton Fields

Court Direction on FTC’s Noncompete Ban Expected This Summer

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The U.S. District Court for the Eastern District of Texas has issued an aggressive scheduling order that “should allow prompt resolution of” one of the initial challenges to the FTC’s noncompete ban “with sufficient time,...more

Troutman Pepper

Water Cooler Talk: Insights on Noncompetes From ‘The Office'

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With the potential for a federal ban on the horizon and increasing restrictions on noncompete agreements at the state level, employers are becoming increasingly hesitant to look to noncompete provisions for protection,...more

Seyfarth Shaw LLP

Amendments To Washington State’s Noncompete Statute Go Into Effect June 6, 2024

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Effective January 1, 2020, Washington enacted a noncompete statute which, among other things, required employers to satisfy notice obligations and compensation thresholds to use noncompete agreements with employees and...more

Carlton Fields

New Jersey Supreme Court Reinstates Arbitrator’s Decision Demoting School Official

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Under New Jersey’s Tenure Employees Hearing Law, when a school district files tenure charges against an employee, the state commissioner of education must refer the case to arbitration if he or she determines that the charges...more

CDF Labor Law LLP

Flowers, Chocolates, or Notice of Noncompete Agreement?

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Many people are contemplating what to give their Valentine in a couple of weeks.   However, California employers that employed California persons under an agreement with a noncompete clause “no matter how narrowly...more

Littler

Global Non-Compete Reform – At a Glance Tracker: January 2024

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The US is not the only country currently debating a reform to the law on non-competes (see here in relation to federal law and New York). Notably, the UK Government has announced legislation that would limit the duration of...more

Seyfarth Shaw LLP

Georgia Signals Greater Leeway in Revising Overbroad Non-Competes

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In a recent decision, the Eleventh Circuit seemed to approve a more forgiving standard for reviewing restrictive covenants. Courts generally have three colors in their markup kit for restrictive covenants. The first—and most...more

FordHarrison

Noncompete News: The More Things Change, the More They Remain the Same: Georgia Supreme Court Addresses Choice of Law Provisions...

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Historically, Georgia courts have declined to apply another state’s law to determine whether to enforce restrictive covenants against a Georgia employee, regardless of whether the agreement stated that another state’s law...more

Society of Corporate Compliance and Ethics...

Federal Trade Commission proposes a noncompete ban: Five things to know

By now, most compliance professionals are aware of the Federal Trade Commission (FTC) press release from January 5, which announced its proposed rule to ban noncompete clauses. The FTC proposed adding a new subchapter J,...more

Nelson Mullins Riley & Scarborough LLP

NLRB General Counsel Issues Guidance on Severance Agreement Restrictions following McLaren Macomb

On March 22, 2023, NLRB General Counsel Jennifer Abruzzo issued Memorandum GC 23-05 (the “Memorandum”) offering guidance to Regional Directors for interpreting the National Labor Relations Board’s (the “NLRB” and the “Board”)...more

Wyrick Robbins Yates & Ponton LLP

NLRB Questions Confidentiality and Nondisparagement Provisions in Separation Agreements

Employers terminating employees frequently offer severance payments in exchange for the employees’ entry into a separation agreement.  Generally these separation agreements include a release of claims along with other...more

Dickinson Wright

NLRB’s Combination McLaren Decision and GC Memo KO’s Severance (and Other) Agreements

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In the McLaren Macomb opinion issued last month, 372 NLRB No. 58 (2023), the National Labor Relations Board (“NLRB”) landed a healthy punch chipping away at what had previously been considered standard severance provisions in...more

FordHarrison

Harry and Meghan: A Case for Non-Disparagement Agreements

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Harry and Meghan are spilling the tea again! Unless you have been hiding under a rock or have been blissfully disconnected from celebrity news, you have likely been bombarded with wall-to-wall coverage of bombshell after...more

BCLP

Moonlighting or two-timing? How should employers deal with side-hustles?

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If you are an active user of social media, you are likely to have encountered the concept of a “side-hustle”. Popularised and promoted by many “influencers”, the side-hustle can take different forms....more

Pullman & Comley - Labor, Employment and...

How to Effectively Utilize Noncompete Agreements in a Tight Labor Market

As most employers know, “human capital” is currently a very precious commodity and employers are using legal tactics to retain their star performers. One tool employers often use to try to retain high-value employees is a...more

Nelson Mullins Riley & Scarborough LLP

New Law Changes Non-Compete Landscape for D.C. Employers

The long-awaited Washington, D.C. non-compete and anti-moonlighting law finally went into effect on Oct. 1, 2022. At the end of 2020, the Washington, D.C. Council passed the Ban on Non-Compete Agreements Amendment Act of...more

Stikeman Elliott LLP

An Oppressive Outcome: Alberta Court Finds Directors Responsible for Severance Obligations

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The recent decision of the Alberta Court of Queen’s Bench, Wisser v CEM International Management Consultants Ltd., 2022 ABQB 414, determined that the oppression remedy under the Alberta Business Corporations Act (“ABCA”),...more

Littler

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

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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

Polsinelli

District of Columbia Relaxes its Non-Compete Ban to Allow Restrictive Covenants for Certain Employees

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The District of Columbia Council passed the Non-Compete Clarification Act of 2022 (“Act”) in late July 2022, setting standards for how and when employers can use and enforce covenants not to compete. The Act notably clarifies...more

Sheppard Mullin Richter & Hampton LLP

New Year, New Rules: The District of Columbia’s New Ban on Non-Compete Agreements

On January 11, 2021, D.C. Mayor Muriel Bowser signed the Ban on Non-Compete Agreements Amendment Act of 2020 (the “Act”), which, once effective, will be one of the broadest bans on non-compete agreements in the country. ...more

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