News & Analysis as of February 9, 2025

Blue Pencil Contract Modification

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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 -

Complying With Recent Guidance From Delaware Courts Regarding Enforcement of Noncompetes

Foley & Lardner LLP on 1/14/2025

In line with the national trend making noncompetes more difficult to enforce, a number of Delaware courts have recently refused to “blue pencil” overbroad noncompetition agreements and have stricken them in their entirety. As...more

Trio of Delaware Cases Signal Stricter Review of Sale-of-Business Non-Competes

Morrison & Foerster LLP on 4/3/2023

On March 16, 2023, the Delaware Chancery Court in Intertek Testing Services NA, Inc. v. Eastman found a sale-of-business non-compete was overbroad, given its worldwide geographic scope, and refused to modify it to make it...more

UK Employment Flash - August 2019

Skadden, Arps, Slate, Meagher & Flom LLP on 8/13/2019

In this issue of UK Employment Flash, we examine the latest employment law developments, news and insights from the UK, including the Court of Appeal's ruling regarding pay for fathers or other caregivers taking shared...more

Non-Compete News: Is Your Non-Compete Clause Too Broad? An Illinois Court Offers Guidance

FordHarrison on 4/24/2018

When drafting restrictive covenants, employers face a common dilemma about the scope of activities to be restrained. On the one hand, highly focused non-compete language tends to be more enforceable but might not protect the...more

New Rules for Nevada Noncompetes

Dickinson Wright on 12/15/2016

Nevada Companies Must Review Their Noncompete Agreements - The Nevada Supreme Court recently has injected substantial uncertainty into any Nevada contract that contains a noncompete agreement, and companies need to...more

Recent Decisions Highlight Courts’ Reluctance to Modify Overbroad Non-Compete Provisions

Nutter McClennen & Fish LLP on 9/22/2016

In what may be a trend, several courts around the country this year have embraced strict interpretations of non-compete agreements, refusing to blue pencil or equitably reform overbroad or unreasonable clauses in non-compete...more

Nevada Supreme Court Rules that Overly Broad Non-Compete Agreements are Wholly Unenforceable

Littler on 8/9/2016

In July 2016, the Nevada Supreme Court held that when a non-compete agreement extends beyond what is necessary to protect the employer’s interest, the agreement is wholly unenforceable and courts may not modify or “blue...more

Massachusetts Non-Compete Reform: Maybe Next Year

Nutter McClennen & Fish LLP on 8/3/2016

Once again, the Massachusetts legislature took on non-compete reform, and once again, came up empty-handed. On July 31, 2016, the legislature adjourned without reaching a compromise to alter the state’s non-compete landscape....more

Nevada Confirms Its Restrictive Covenant Law, But Rejects Blue Penciling

Jackson Lewis P.C. on 7/27/2016

In the first decision to reach the Nevada Supreme Court on whether state district courts may modify or “blue pencil” non-competition agreements, the high court has concluded that doing so would violate Nevada law. Golden Road...more

Bring Out the Body Bags: Seller’s Covenant, In Asset Sales Agreement, Not To Compete Within 150 Miles For 10 Years Unenforceable

Seyfarth Shaw LLP on 5/23/2016

Palmetto bought the assets of Knight Systems’ mortuary transport business. The agreement of purchase and sale included (a) Palmetto’s commitment to buy body bags, at specified discounted prices, exclusively from Knight...more

North Carolina Supreme Court Reaffirms Strict "Blue Pencil" Rule for Non-Competes

Parker Poe Adams & Bernstein LLP on 3/29/2016

When it comes to modifying the terms of a non-competition agreement deemed overbroad or unreasonable, North Carolina has long held to the blue pencil rule. Unlike many other states, North Carolina judges do not have the...more

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