Unraveling the Concept of Garden Leave: Insights From Silicon Valley — Hiring to Firing Podcast
On April 23, 2024, the Federal Trade Commission (FTC) issued its final rule banning non-compete provisions nationwide (the Rule). While the FTC contends that non-competes keep wages low, suppress new ideas and stifle the...more
In this episode of the Hiring to Firing Podcast, Partners Tracey Diamond and Evan Gibbs, along with Dan Sieck, a partner in the firm's Corporate practice group, discuss the hit TV show Silicon Valley and the concept of garden...more
A common example of a non-compete restriction is a new CPA who signs such an agreement as part of his or her onboarding paperwork. Years later, the CPA considers moving to another firm, or opening their own firm, but that...more
On January 5, 2023, the Federal Trade Commission (FTC) announced a proposed rule that, if enacted, would amount to a near-total ban on the use of non-compete agreements nationwide. If enacted as written, the FTC’s proposed...more
A Massachusetts Federal District Court has held that an employer’s garden leave payments to a former employee pursuant to a non-compete provision are not considered “wages” under the Massachusetts Wage Act. As a...more
If you have a remote workforce, chances are you have employees in multiple states. Many of these employees may have access to proprietary information that could damage your business if used in competition against you....more
2022 hasn’t been the friendliest year for employers that seek to protect trade secrets with a noncompete agreement. Although many jurisdictions understand the importance of contractually protecting a company’s legitimate...more
Last week, the New Jersey Assembly’s Labor Committee passed bill A3715, designed to sharply limit the available provisions, use, and enforceability of restrictive covenants in employment contracts by New Jersey employers....more
The landscape for restrictive covenants and confidentiality agreements is changing rapidly across the country. Notice periods, compensation thresholds, and consideration requirements are increasingly common, and the days...more
In October 2018, businesses across the country braced for the effects of a noncompete law that was enacted in Massachusetts. The "garden leave" clause in Massachusetts' noncompete law dictated that during the period in which...more
I have posted a few times here about using post-employment restrictions to preserve a manufacturer’s competitive advantage. See “Non-Compete Cautionary Tale” (Nov, 2, 2018); “I’m New – And It’s No [Trade] Secret” (Oct. 27,...more
Nationwide there has been continued hostility toward noncompetition agreements for employees. A noncompetition agreement is an agreement entered into by an employee by which the employee (during employment and after) agrees...more
After years of stalled efforts, Washington has joined the growing list of states imposing statutory restrictions on employers’ use of restrictive covenants. On May 8, 2019, Governor Inslee signed into law Engrossed Substitute...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
Finding that “workforce mobility is important to economic growth and development,” Washington just passed a new law that will significantly restrict noncompetition agreements with both employees and independent contractors....more
In the four months since the Massachusetts Noncompetition Agreement Act became effective, employers have learned the hard way that implementing the new rules is a lot harder than it seems....more
It has been just over a month since Massachusetts’ comprehensive noncompetition reform law took effect. We explained the key provisions of the law last summer. Since then, what have we learned and what questions remain?...more
One month into Massachusetts’ new non-competition law, employers throughout the Commonwealth are learning what many predicted from the beginning—there are a lot more questions than answers. As Fisher Phillips previously...more
Businesses across the country are feeling the effects of a pair of laws recently enacted in Massachusetts. The "garden leave" clause in Massachusetts' new noncompete law dictates that during the period in which a departed...more
Readers of our blog will recall that this summer, the Massachusetts legislature passed a non-compete reform bill after nearly a decade of fruitless attempts. The new law goes into effect today, meaning that any agreements...more
Massachusetts recently enacted a new statute that significantly changes the treatment of noncompetition agreements under Massachusetts law. The Massachusetts Noncompetition Agreement Act (the “Act”) is effective October 1,...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
Massachusetts Governor Charlie Baker signed into law a comprehensive non-compete law that will take effect on October 1, 2018 (“the Act”). It applies to all non-competes entered after the effective date. The Act follows...more
Just two days after TSW’s inaugural post, we brought you news of Texas becoming the 48th state to enact some form of the Uniform Trade Secrets Act (UTSA)....more
Q: My company is headquartered in Massachusetts. Does the new Massachusetts law on non-competes change how I structure non-compete agreements with employees? ...more