News & Analysis as of

Former Employee Hiring & Firing Restrictive Covenants

Mayer Brown

Employer's Claim to Enforce Non-Compete and Non-Solicitation Obligations Dismissed by Hong Kong Court

Mayer Brown on

In the recent case of Moxie Communications Limited v. Lai Cheuk Lok [2024] HKDC 1323, an employer (the "Company") sought to enforce two post-termination restrictive covenants ("PTRs") against a former employee (the...more

Mayer Brown

Germany: Restrictive Covenants

Mayer Brown on

AT A GLANCE - Employees in Germany are subject to statutory non-competition and non-solicitation obligations during an employment relationship. Similar statutory restrictions apply to directors and board members as long as...more

Quarles & Brady LLP

Employers Have New Obligations Under Statute Regulating Noncompete Agreements

Quarles & Brady LLP on

As discussed in a prior alert, newly-enacted California laws governing noncompete agreements require employer action by February 14, 2024. This alert explains the purpose of the new laws, what the notification requirement...more

Burns & Levinson LLP

Employers Must Give Notice to Current and Certain Former California Employees of Void Noncompete by February 14, 2024, or Risk...

Burns & Levinson LLP on

Many companies have ceased using noncompete clauses for employees working in California. At best the clauses have become unenforceable, at worst, a liability for the company....more

Seyfarth Shaw LLP

Golden State Crackdown on Non-Competes: California Enacts Second Non-Compete Law To Curtail Use of Non-Competes With Employees

Seyfarth Shaw LLP on

California has done it again! We reported last month concerning California’s new non-compete law that furthers the state’s protections for employee mobility and seeks to void out of state employee non-compete agreements....more

Troutman Pepper

Seventh Circuit Revives McDonald's Employee No-Poach Litigation

Troutman Pepper on

In June of 2022, McDonald’s obtained a judgment on the pleadings, ending antitrust litigation challenging the legality of the no-hire restraints it previously included in its franchise agreements. More than a year later, the...more

Seyfarth Shaw LLP

New California Non-Compete Law Furthers the State’s Employee Mobility Protections and Seeks to Void Out of State Employee...

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On September 1, 2023, California Governor Gavin Newsom signed legislation that furthers the state’s protections for employee mobility and seeks to void out of state employee non-compete agreements. Specifically, the new law...more

CDF Labor Law LLP

New Golden State Law To Create Gold Rush Litigation Testing Non-Compete Agreements

CDF Labor Law LLP on

For over two decades, California law concluded non-compete agreements are not enforceable in the context of employment, Edwards v. Anderson, 44 Cal.4th 937 (2008) and even created a public policy claim against employers...more

Littler

California Reaches Across State Lines to Invalidate Employee Non-Compete Agreements

Littler on

We are in the final stretch of the California legislature’s first year of a two-year session. One bill that sped through the legislative process—without any registered opposition—is Senate Bill 699, which extends the state’s...more

Fisher Phillips

Former Employees Who Couldn’t Wait to Leave Their Florida Employer Before Illegally Competing Ordered to Pay Heavy Price

Fisher Phillips on

A Florida Circuit Court judge sternly rebuked two former employees of a private South Florida provider of Autism treatment services who began competing illegally with a new employer – while still employed with their old...more

CDF Labor Law LLP

California Assists New York Employees in No-Poach Case

CDF Labor Law LLP on

A private class-action complaint claimed that the department store, Saks, and several luxury brands (including Louis Vuitton, Loro Piana, Prada, Brunello and Fendi) violated Federal Antitrust laws when they agreed that each...more

Poyner Spruill LLP

Another Reason to Revisit Non-Competes: New Risk of NLRA Charges

Poyner Spruill LLP on

Following the recent declaration that certain confidentiality and non-disparagement clauses in severance agreements are unlawful, the National Labor Relations Board (NLRB) General Counsel released a memo on May 30, 2023 (GC...more

Shumaker, Loop & Kendrick, LLP

Client Alert: NLRB Announces that many Non-Compete Agreements are now in Violation of Federal Law

Shumaker recently published a Client Alert about the Federal Trade Commission’s (FTC) proposed rule essentially banning the use of non-competition agreements. In that Alert we advised clients that they should take a “wait and...more

Littler

UK Follows US FTC Proposal and Issues its Own Non-compete Proposals

Littler on

The UK government on May 10, 2023, announced its intention to limit the length of post-employment non-compete clauses (i.e., restrictions prohibiting an employee from going to work for a competitor or to start a rival...more

Shumaker, Loop & Kendrick, LLP

Client Alert: Your Non-Compete Might Not Be Enforceable For Much Longer

Whether you are an employer attempting to maintain and enforce non-compete provisions in contracts with your employees, or an employee trying to navigate career developments despite being subject to such a provision, you need...more

Brownstein Hyatt Farber Schreck

FTC Extends Comment Deadline on Noncompete Rule

Comments on the Federal Trade Commission’s proposed noncompete clause rulemaking will now be accepted until April 19. The FTC voted 4-0 yesterday to extend the public comment window by roughly 30 days; it was initially set to...more

Bodman

Sixth Circuit Upholds Non-Compete Agreement Based on “Flexible Language” in Preliminary Injunction

Bodman on

A recent Sixth Circuit decision upholding an employer’s non-compete agreement with a former employee highlights the need for legal counsel to craft preliminary injunction language in such matters which reflects the unique...more

Polsinelli

More Signs of Trouble for Non-Compete Agreements

Polsinelli on

Non-compete agreements have had a rough 2023, most recently with President Biden specifically calling them out on Tuesday evening during his State of the Union and emphasizing his Administration’s opposition to them.  This,...more

Littler

New Jersey’s New Year’s Resolution: A New Law Limiting Restrictive Covenants?

Littler on

Currently pending in the New Jersey Legislature is a bill that would upend decades of New Jersey jurisprudence governing restrictive covenants in employment contracts and severance agreements, and impose an array of new...more

Gray Reed

Navigating the Proposed Elimination of Employee Non-Compete Agreements

Gray Reed on

If you have been around Texas construction in the past decade, you’ve no doubt heard about a foreman shopping his crew around. You’ve probably worried about a key superintendent or project manager taking his skills to your...more

Brownstein Hyatt Farber Schreck

The Federal Trade Commission Proposes Ban on Employer-Worker Non-Compete Agreements

On Jan. 5, 2023, the Federal Trade Commission (FTC) issued a Notice of Proposed Rulemaking (Proposed Rule) seeking to categorically ban nearly all employer non-competition agreements nationwide. If passed in its draft form,...more

Seyfarth Shaw LLP

“What’s in a Name?” A Shortened Restrictive Covenant Duration, Perhaps

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Many restrictive covenant agreements rely on various abbreviations to streamline the contractual language, including most notably the use of “Company” as a stand-in for the employer’s name. Additionally, these agreements...more

Jackson Lewis P.C.

[Event] A Day in the Life of a Restrictive Covenant Attorney: Long Island Workplace Law Breakfast Series - November 17th,...

Jackson Lewis P.C. on

Join Jackson Lewis P.C. attorneys in-person for the annual Long Island Workplace Law Breakfast Series. We are excited to provide you with a unique perspective on our most popular labor and employment law topics. The "A Day...more

Fisher Phillips

Will New Jersey Become the ‘Garden Leave’ State? Proposed Legislation Would Set Strict Rules for Non-Competes Including Full Pay...

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New Jersey recently joined a growing number of states that have taken legislative efforts to significantly limit the enforceability of post-employment restrictive covenant agreements – such as non-compete and non-solicitation...more

Proskauer - Law and the Workplace

In Colorado, “Low Wage” Now Means Six-Figures For Non-Competes

On June 8, 2022, Colorado Governor Jared Polis signed Colorado House Bill 22-1317 (the “Bill”), which was passed by the Colorado Legislature on May 10, 2022. Effective 90 days from the end of the legislative session – on...more

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