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The Massachusetts legislature passed the Massachusetts Noncompetition Agreement Act (MNAA) in 2018, culminating a longstanding effort to balance employers’ rights to protect legitimate business interests—such as trade...more
Arizona employer cannot exclude settlement communications from former employee’s retaliation complaint - In Flores v. Rafi Law Group PLLC, the plaintiff accused her law firm employer of retaliating against her by (i)...more
In one of the most highly anticipated court rulings of the summer, the U.S. District Court for the Northern District of Texas set aside the FTC’s Non-Compete Rule (“Rule”), which would have effectively banned most...more
As the Federal Trade Commission’s Non-Compete Rule is appealed through the federal courts, a ruling from a court in Cleveland, Ohio, exemplifies how certain courts have recently approached non-compete and non-solicitation...more
The NLRB issued its order and decision last year in McLaren Macomb, holding that employers violate the NLRA by enforcing — or even offering — severance agreements containing overly broad confidentiality and non-disparagement...more
On Jan. 1, new legislation aimed at curbing the use of unenforceable noncompete agreements took effect in California. The new laws, which impose potentially harsh consequences on employers for requiring employees to sign...more
Ex-employee’s golf outing with customer does not violate non-solicit - An auto parts manufacturer in Michigan sought a preliminary injunction against a former sales employee for violating his restrictive covenants,...more
October 2023: Public information can be a trade secret; Litigants get creative to contest non-competes; NJ addresses the enforceability of non-disparagements; Law firm DEI programs face legal challenges - Compilation of...more
The US Court of Appeals for the Sixth Circuit upheld a district court’s grant of a preliminary injunction restricting a former employee from working for conflicting organizations or communicating with a competitor’s counsel....more
On March 8, 2022, the Fifth Circuit Court of Appeals held that a non-compete agreement was not enforceable because the employer seeking to enforce the agreement had presented it to the employee, and the employee had signed...more
In an important decision on August 19, 2021, the Ninth Circuit Court of Appeals in Aya Healthcare Services, Inc. v. AMN Healthcare, Inc. affirmed the grant of summary judgment in favor of AMN, finding that the...more
In recent years, North Carolina courts have become increasingly resistant to enforcing noncompetition and non-solicitation restrictions they view as insufficiently narrowed to the specific competitive threat presented by the...more
California Employee mobility and the right to compete are sacrosanct in California, and have been since its Legislature enacted section 16600 of the California Business and Professions Code, which voids “every contract by...more
When we talk with clients about post-employment “noncompete” agreements, this term actually encompasses a number of different restrictions. In addition to provisions that restrict the employee from working for a competitor...more
Refusing to enforce a non-solicitation provision that violated public policy, the Colorado Court of Appeals held that parties to a non-solicitation agreement cannot contractually obligate the court to “blue pencil” the...more
The Colorado Court of Appeals recently decided an issue of first impression regarding noncompetition and nonsolicitation agreements. The decision in 23 LTD v. Herman highlights an important consideration for Colorado...more
This edition of Employment Flash looks at developments in labor and employment law, including with respect to restrictive covenants; new state anti-harassment laws; minimum wage increases; age bias claims; and the employee...more
California’s prohibition against contracts that restrain a person’s ability to engage in a lawful business, profession, or trade is well-established and well-known. Ten years ago, in Edwards v. Arthur Andersen LLP (2008) 44...more
Last month, California’s Fourth District Court of Appeal issued AMN Healthcare, Inc. v. Aya Healthcare Servs., Inc., 28 Cal. App. 5th 923 (Cal. Ct. App. 2018), a decision calling into question the validity of non-solicitation...more
California Business & Professions Code Section 16600 is particularly tough on covenants not to compete declaring, with certain exceptions, "every contract by which anyone is restrained from engaging in a lawful profession...more
Georgia’s Restrictive Covenants Act (the “RCA”) became effective in May 2011, but it took nearly six years before a court published a decision interpreting the statute in the context of a non-competition provision....more
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
In November 2017, the Tennessee Court of Appeals upheld a Nashville trial court’s determination that a former employee violated his noncompete agreement by managing employees who solicited competing business in the restricted...more
Georgia’s recent Restrictive Covenant Act, enacted in 2011, does not directly address non-solicitation of employees a/k/a non-recruitment covenants, thereby leaving such provisions subject to the principles developed by...more
When Gregory Gelineau quit his job at an Illinois-based insurance company to work for a competitor, he sent LinkedIn invitations to a group of his former co-workers. In response, Gelineau’s former company sued him. The...more