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Non-Compete Agreements › Contract Terms

Non-Compete Agreements are contracts, typically formed in employment or business purchase contexts, where one party agrees to refrain from engaging in a particular line of work or pursuing business within a... more +
Non-Compete Agreements are contracts, typically formed in employment or business purchase contexts, where one party agrees to refrain from engaging in a particular line of work or pursuing business within a certain industry or locale. The purpose of these agreements is to protect employers or business purchasers from competition stemming from former employees or former owners of a business. less -
Lathrop GPM

Michigan Federal Court Grants Franchisor’s Motion for Preliminary Injunction Against Former Restoration Service Franchisee

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A federal court in Michigan has granted a franchisor’s motion for preliminary injunction against former franchisees for violating the franchise agreements’ post-termination noncompete provisions. 1-800 Water Damage Int’l LLC...more

Lathrop GPM

Michigan Precedent on Michigan Franchise Investment Law Held to Trump Inconsistent Sixth Circuit Precedent on Private Right of...

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A federal court in Michigan recently granted several related franchisors’ motions to dismiss a franchisee’s claims for violations of the Michigan Franchise Investment law. Benjamin Franklin Franchising SPE LLC v. David...more

Poyner Spruill LLP

FTC’s Non-Compete Ban Is On Hold, For Now

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Earlier this year, we wrote about the Federal Trade Commission (FTC) enacting a final rule to ban most all forms of non-compete agreements between employers and employees in the United States (available here).  The ban was...more

Epstein Becker & Green

Continued Employment May Constitute Sufficient Consideration for Noncompete Agreements in Connecticut, but Uncertainty Remains

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The Connecticut Supreme Court recently held that continued employment may constitute sufficient consideration for noncompete agreements under Connecticut law, but left unclear the parameters of that holding....more

Sheppard Mullin Richter & Hampton LLP

California Court of Appeal Rules That Partial Sale of Business Can Bind Seller-Owner to a Noncompetition Agreement

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In Samuelian v. Life Generations Healthcare, LLC, — Cal. App. 5th —, 2024 WL 3878448 (Cal. App. Aug. 20, 2024), the California Court of Appeal answered two long outstanding questions of California law concerning the...more

Balch & Bingham LLP

Balch’s Decision Dive: Texas Trial Court Struck Down the FTC’s Noncompete Rule

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In this episode of Decision Dive, Balch’s Jason Tompkins, Chair of Balch & Bingham’s Issues & Appeals Practice, is joined by Adam Israel, partner in the firm’s Litigation Practice, to explore a decision by the U.S. District...more

Gray Reed

Texas Federal Court Blocks FTC's Non-Compete Ban

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On August 20, 2024, Judge Ada Brown of the Northern District of Texas issued her much anticipated order which officially set aside the FTC’s Final Rule Banning Non-Competes (the “Ban”), which we first brought to your...more

Farrell Fritz, P.C.

Unpacking the (Un)Reasonableness of Non-Compete Provisions

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New York law generally does not favor non-compete agreements, viewing them as unreasonable restraint of trade. As a result, New York courts apply a rigorous standard when deciding whether to enforce these restrictive...more

Jones Day

JONES DAY PRESENTS®: Employer Options in a Non-Noncompete World

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Recent federal and state regulations have restricted employers' use of noncompete agreements, which in part are designed to protect trade secrets. The U.S. Federal Trade Commission's final rule, which broadly prohibits the...more

Mayer Brown

United States: Restrictive Covenants

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The enforceability of restrictive covenants in the United States is currently governed by state law, although that may change if federal rules or legislation are enacted to address such covenants. State laws regarding...more

Mayer Brown

Hong Kong: Restrictive Covenants

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Restrictive covenants with the sole aim of preventing competition will not be upheld by Hong Kong courts. In cases where there is a legitimate interest to be protected, restrictive covenants must be reasonable and not go...more

Mayer Brown

China: Restrictive Covenants

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AT A GLANCE - The only post-employment restrictive covenant explicitly stipulated under the People’s Republic of China’s (PRC) labour laws is the non-compete restrictive covenant. The employer and the employee may agree on...more

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

Pennsylvania Bans Healthcare Practitioner Noncompete Agreements Longer Than 1 Year

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In a major noncompete development for the Commonwealth of Pennsylvania, beginning January 1, 2025, certain noncompete agreements with doctors, registered nurses, and other healthcare practitioners will no longer be...more

Tucker Arensberg, P.C.

Gov. Shapiro Signs Fair Contracting for Healthcare Practitioners Act Into Law

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On July 17, 2024, Pennsylvania Governor Josh Shapiro signed the Fair Contracting for Health Care Practitioners Act into law, which will become effective as of January 1, 2025....more

PilieroMazza PLLC

Texas Court Order Imperils FTC’s Forthcoming Non-Compete Ban

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On July 3, 2024, the District Court for the Northern District of Texas stayed enforcement of the Federal Trade Commission’s (FTC) impending ban on non-compete agreements between employers and employees (the Rule) pending the...more

Lathrop GPM

Minnesota State Court Grants Franchisor’s Motion for Preliminary Injunction Enjoining Franchisee from Violating Post-Termination...

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A state trial court in Minnesota granted Renters Warehouse USA, LLC’s motion for a temporary injunction, and enjoined Life Property Managers, LLC (LPM) from violating its post-termination obligations and a covenant not to...more

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

Louisiana Institutes New Restrictions on Noncompete Agreements for Primary Care Physicians

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The Louisiana Legislature recently unanimously passed Act No. 273, which limits noncompete agreements for physicians in the state. The act requires all applicable new noncompete agreements to sunset after three years for...more

Benesch

Benesch Healthcare+ Nephrology & Dialysis Conference Panel Key Take Aways - Noncompete Update and Case Study

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The future of non-competition agreements remains volatile. Recent actions by the FTC and several states threaten to limit, or even outright ban, these agreements. Such an evolving regulatory landscape requires employers to...more

Burr & Forman

Protecting Confidential Intellectual Property in the Wake of the FTC’s “Final Rule” Against Non-Competition Provisions

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As the Federal Trade Commission (FTC) implements “the final rule” banning non-competes, businesses with sensitive intellectual property (IP) must look to alternative measures to safeguard it. Despite apprehension about the...more

BCLP

HK High Court Refuses to Enforce a 12-month Worldwide Non-compete Covenant

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In Manulife Financial Asia Limited and Kenneth Joseph Rappold & Others [2024] HKCFI 989 (date of decision: 5 April 2024), the Hong Kong High Court refused a company’s application to enforce a 12-month non-compete clause...more

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

New Maryland Law Places New Restrictions on Noncompete Agreements for Health Care and Veterinary Professionals

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Restrictions on noncompete agreements in the state of Maryland for certain care-related industries have become substantially broader. Under Maryland’s House Bill (HB) 1388, Maryland employers now face greater restrictions...more

Lathrop GPM

Bankruptcy Court Grants Motion of Franchisee Debtor to Reject Franchise Agreement, Concludes Noncompete and Confidentiality...

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A Michigan bankruptcy court recently granted debtor/franchisee Empower Central Michigan Inc.’s motion to reject a franchise agreement as an executory contract but found that a non-compete clause and a related confidentiality...more

Parker Poe Adams & Bernstein LLP

What Physicians and Their Practices Need to Know About FTC's Noncompete Ban

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On April 23, the Federal Trade Commission (FTC) approved a long-anticipated final rule that will effectively ban the use of noncompete clauses by employers, with a few limited exceptions....more

Lathrop GPM

New Jersey Federal Court Partially Enforces Noncompete Covenant Against Former Franchisee

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A federal court in New Jersey recently granted a franchisor’s motion for a preliminary injunction, enjoining the former franchisee from using the franchisor’s marks and violating the franchise agreement’s noncompete clause,...more

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

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

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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

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