News & Analysis as of September 18, 2024

Non-Compete Agreements › Forum Selection

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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 -

Washington’s Amended Non-Compete Law Creates New Considerations for Employers

Sheppard Mullin Richter & Hampton LLP on 5/21/2024

Washington Governor Jay Inslee recently signed Senate Bill 5935 into law, amending and expanding Washington’s statute restricting the enforceability of noncompetition covenants (Revised Code of Washington 49.2). The amended...more

Minnesota Is Poised to Enact a Law Banning Virtually All Non-Compete Agreements

Littler on 5/15/2023

A proposed law banning virtually all covenants not to compete (also known as non-compete agreements) is headed to the Minnesota State Senate and House of Representatives, where it is widely expected to pass. Once it arrives...more

Massachusetts’ “Provincial” Forum Selection Requirement May Not Trump Reasonable Foreign Forum Selection Clause

Seyfarth Shaw LLP on 7/18/2022

Nearly five years ago, the Massachusetts Noncompetition Agreement Act (“MNAA”, also sometimes abbreviated as the “MNCA”) went into effect. That statute ushered in new requirements for non-competes in the Bay State (including...more

Colorado Set to Severely Limit Non-Competes and Other Restrictive Covenants: A 5-Step Action Plan for Employers

Fisher Phillips on 5/12/2022

Colorado lawmakers just passed a law that will bring dramatic change to the non-compete landscape by significantly limiting the circumstances under which restrictive covenants may be used – virtually ending the practice of...more

California Labor Code Section 925: A Word of Caution for Out-of-State Employers of California Employees

Sheppard Mullin Richter & Hampton LLP on 3/30/2022

Employers faced with an apparent trade secret misappropriation by former employees must decide what jurisdiction to bring suit in. For an employer headquartered outside of California who employs California residents working...more

Ninth Circuit Upholds Application of California Labor Code To Contractual Forum-Selection and Choice-of-Law Clause To Keep Dispute...

Sheppard Mullin Richter & Hampton LLP on 3/29/2022

This month, the Ninth Circuit’s decision in DePuy Synthes Sales v. Howmedica Osteonics held that a U.S. district court in California properly invalidated a foreign choice-of-law and forum selection provision under California...more

Ninth Circuit Rejects Enforcement of New Jersey Choice of Law and Non-Compete Agreement In Employment—The Importance of Being The...

CDF Labor Law LLP on 3/22/2022

In novel and important decision, DePy Synthes Sales v. Howmedica Ostionic’s, Ninth Cir. Case No. 21-55126, on March 14, 2022, the Ninth Circuit Court of Appeals upheld the lower court’s decisions to prevent a former employer...more

[Webinar] Drafting Enforceable Restrictive Covenants and Confidentiality Agreements for Multi-State Employers - April 5th, 12:30...

Epstein Becker & Green on 3/3/2022

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

Non-Compete Agreement Litigation: Lessons from Recent Eighth Circuit Case

Mitchell, Williams, Selig, Gates & Woodyard,... on 6/16/2021

Litigation over non-compete agreements can be complex, involving simultaneous lawsuits in different states, timely legal maneuvering, and substantial organizational challenges. The stakes are often high. Litigating in this...more

The Franchise Memorandum - Issue # 266

Lathrop GPM on 6/4/2021

Welcome to The Franchise Memorandum by Lathrop GPM. Below are summaries of recent legal developments of interest to franchisors. Post-Termination Injunction: Noncompete Covenants - California Federal Court Enforces...more

Court of Chancery finds that it lacks personal jurisdiction over employee in former company’s non-compete action

Snell & Wilmer on 2/24/2021

Choice of law and choice of forum clauses in employment agreements are tricky business. Even though a Delaware LLC employer may think they have strong, iron-clad selection provisions in their employment agreements, the...more

Duplicative Non-Compete Provisions in Employment Contracts Might Defang Choice of Forum Provisions in Corporate Formation...

Dechert LLP on 2/22/2021

Repetition is not always a rhetorical virtue. Delaware entities seeking to enforce non-compete provisions exclusively in Delaware courts have now been warned: Including non-compete agreements in employment contracts with...more

Don’t Neglect Forum Selection and Choice of Law Provisions When Drafting or Litigating Restrictive Covenants

Sheppard Mullin Richter & Hampton LLP on 12/1/2020

Employment agreements with restrictive covenants typically contain both a forum selection clause, which determines the forum where a dispute must be heard, and a choice of law clause, which determines the law that applies to...more

The Franchise Memorandum - Issue # 259

Lathrop GPM on 11/6/2020

Colorado Federal Court Applies Forum Selection Clause to Non-Signatory Entities Controlled by Former Franchisees - A federal court in Colorado held that entities controlled by former franchisees were bound by the forum...more

Preliminary Injunctions: Jurisdictional Issue Undermines Likelihood of Success on the Merits

Farrell Fritz, P.C. on 8/18/2020

Paramount to obtaining an often necessary preliminary injunction pursuant to Article 63 of New York’s Civil Practice Law and Rules (“CPLR”) is the movant’s obligation to establish a likelihood of success on the merits. A...more

Delaware Choice of Law Clause Unenforceable Against Nebraska Employee: A Cautionary Tale

Epstein Becker & Green on 5/14/2020

Citing Nebraska’s fundamental public policy, the U.S. Court of Appeals for the Third Circuit recently affirmed a District Court’s refusal to enforce a Delaware choice of law clause in a non-compete agreement signed by a...more

Top 10 Developments and Headlines in Trade Secret, Non-Compete, and Computer Fraud Law for 2019 & 2020

Seyfarth Shaw LLP on 2/27/2020

Continuing our annual tradition, we have compiled our top developments and headlines for 2019 & 2020 in trade secret, non-compete, and computer fraud law. Here’s what you need to know to keep abreast of the ever-changing law...more

Use Of Out-Of-State Restrictive Covenants Ending Quickly In California

Orrick - Trade Secrets Group on 8/26/2019

Two years ago, TSW reported on several cases in which corporations outside of California successfully enforced non-compete agreements against California employees. They did so by using employment agreements containing...more

Massachusetts Court Provides Guidance on Choice of Law and Forum Selection Clauses in Restrictive Covenants

Ogletree, Deakins, Nash, Smoak & Stewart,... on 10/1/2018

With Massachusetts’s comprehensive noncompete law taking effect on October 1, 2018, many employers are reviewing and likely revising their restrictive covenants to ensure that they are compliant with the new law. In...more

How to Comply with Massachusetts’ New Restrictions on Employee Noncompetition Agreements

Morrison & Foerster LLP on 9/10/2018

On August 10, 2018, Massachusetts’ Governor signed into law the Massachusetts Noncompetition Agreement Act (the “Act”), establishing strict new requirements for noncompetition agreements with employees entered on or after...more

Top Developments And Headlines In Trade Secret, Computer Fraud, And Non-Compete Law In 2017 And What We Expect In 2018

Seyfarth Shaw LLP on 3/6/2018

Continuing our annual tradition, we present the top developments and headlines for 2017 and what we expect in 2018 in trade secret, computer fraud, and non-compete law....more

Top Developments/Headlines in Trade Secret, Computer Fraud, and Non-Compete Law in 2017

Seyfarth Shaw LLP on 2/19/2018

Continuing our annual tradition, we present the top developments/headlines for 2017/2018 in trade secret, computer fraud, and non-compete law....more

How “Similar” is Similar Enough for New York Law to Trump a Choice-of-Law Provision?

Patterson Belknap Webb & Tyler LLP on 2/5/2018

In WL Ross & Co. v. Storper,[1] a recent Commercial Division decision involving the private equity firm founded by U.S. Secretary of Commerce Wilbur Ross, Justice Andrea Masley suggested that New York courts can disregard...more

Non-Compete Legislation Update: Why Choices of Law and Forum are a Big Deal

Nutter McClennen & Fish LLP on 11/8/2017

On October 31, 2017, the Joint Committee on Workforce and Development once again held a hearing to discuss the possibility of legislative changes to Massachusetts non-competition and trade secrets laws. There were several...more

How Employers Can Avoid California Labor Code Section 925

Nilan Johnson Lewis PA on 7/20/2017

Many non-California employers view the enactment of California Labor Code Section 925 as destroying any possibility of avoiding the state’s restrictive covenants laws for California-based employees. But there is hope! With...more

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Non-Compete Agreements › Forum Selection

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