News & Analysis as of

Restraint of Trade Contract Terms

A&O Shearman

Re-designing rights to terminate on reasonable notice

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In Zaha Hadid Ltd v The Zaha Hadid Foundation, the High Court confirmed that agreements of indefinite duration would not necessarily be interpreted to include bilateral termination rights and that the absence of such rights...more

BakerHostetler

FTC Announces Action Against No-Hire Provisions Used by Building Services Contractor

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In a divided party-line vote, the FTC recently charged Guardian Service Industries, Inc. (Guardian), a New York City-area building services contractor, with violating Section 1 of the Sherman Act and Section 5 of the Federal...more

Parker Poe Adams & Bernstein LLP

Noncompetes Included in Separation Agreements May Not Survive Legal Challenge

When preparing employee separation or severance agreements, we are occasionally asked by clients whether they can include a noncompetition restriction as part of the severance offer, even in situations where no noncompete was...more

Holland & Knight LLP

California's New Nationwide Focus on Noncompetition Agreements

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For decades, California has taken arguably the most pro-employee-mobility position on noncompetition and non-solicitation agreements in the country – generally, post-employment noncompetition and non-solicitation agreements...more

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

Eleventh Circuit Serves a Whopper of a Ruling on Franchisor’s ‘No-Poach’/‘No-Hire’ Agreement With Franchisees

​​​​​​​Over the last several years, business-to-business “no-hire” and “no-poach” agreements have come under legal attack, including through enforcement actions by the Federal Trade Commission and criminal prosecutions by the...more

Hogan Lovells

Restrictive covenants – more likely to be enforceable, but don’t forget competition law

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A recent Supreme Court judgment has clarified one of the routes to challenging covenants limiting land use. It has adopted a new approach to assessing the old question of what is a “restraint of trade”? The judgment did not...more

Seyfarth Shaw LLP

Will we win? The odds of success in restraint of trade cases

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When an ex-employee goes to a competitor or starts poaching clients or staff, employers often look to a restraint of trade clause to protect key business assets such as client relationships or company confidential...more

Seyfarth Shaw LLP

Cyber Restraints Of Trade In The New Era Of Digital Markets

Seyfarth Shaw LLP on

An enforceable restraint of trade can be a key business asset, giving an employer time to recover when a senior employee has left the business for a competitor. Like a good insurance policy, it’s a big relief to have it when...more

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

Separating the Good From the Bad: UK Supreme Court Clarifies “Blue Pencil” Test in Restraint of Trade Cases

On July 3, 2019, in a long-awaited judgment the Supreme Court of the United Kingdom clarified the correct approach to deciding whether words can be severed from a post-employment covenant to leave an employee bound by the...more

Seyfarth Shaw LLP

The Post-Employment Restraint As A Business Asset

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This is the case now more than ever given that the Supreme Court of Victoria’s decision in Just Group Limited v Peck [2016] VSC 614 (later affirmed on appeal) has arguably raised the bar for correctly drafting an effective...more

Shumaker, Loop & Kendrick, LLP

Employee ‘No Poaching’ Agreements Meet the Antitrust Laws: Protection of Employees in the New Economy

For centuries employers have maintained a strong interest in trying to protect their most valuable asset, their key employees, from solicitation by and loss to other employers, especially competitors. As a result, “no...more

Mintz

DOJ Anti-Steering Suit Against Carolinas Healthcare Survives Preliminary Motion

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On March 30, 2017, in a closely watched case, a federal district court denied the Motion for Judgment on the Pleadings filed by Carolinas Healthcare against the DOJ Antitrust Division and State of North Carolina’s Complaint...more

Foster Garvey PC

OTA & Travel Distribution Update – Dec. 22nd, 2016

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Our weekly client OTA & Travel Distribution Update for the short week ending December 22, 2016 is below. This week’s update is brief one....more

Seyfarth Shaw LLP

Prescribing the “minimum effective dose”

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Drafting and enforcing post-employment restraints has a lot in common with good medicine. It is necessary to prescribe only the “minimum effective dose” – the amount necessary to produce the desired outcome with minimum...more

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