News & Analysis as of

Choice-of-Law Employment Contract

Saul Ewing LLP

Sausage Race Heats Up: Hormel Foods Sues Sausage Competitor Johnsonville Claiming Trade Secrets Misappropriation

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Just in time for grilling season in the Midwest, Hormel Foods Corporation (“Hormel”) filed a federal lawsuit in the District of Minnesota against its competitor, Johnsonville, LLC (“Johnsonville”), and two former Hormel...more

Sheppard Mullin Richter & Hampton LLP

Choice-of-Law Provisions Cannot Circumvent Ending Forced Arbitration Act, Court of Appeal Rules

On February 3, 2025, the California First District Court of Appeal held that a party to an arbitration agreement cannot rely on a choice-of-law provision to wire around the federal Ending Forced Arbitration of Sexual Assault...more

Fisher Phillips

Ohio Lawmakers Push to Ban Non-Compete Agreements: 4 Key Provisions Impacting Employers

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Employers in Ohio may soon need to reexamine employment agreements and internal policies if a proposed non-compete ban becomes law. A state Senate bill was recently introduced aiming to prohibit agreements that restrict a...more

Saul Ewing LLP

First Circuit Says Massachusetts Non-Compete Agreement Enforceable in California Despite State’s Ban

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Last month, in DraftKings Inc. v. Hermalyn, the First Circuit Court of Appeals issued a decision concerning the application of California’s non-compete ban to agreements formed outside the state. Broadly, the decision...more

Jones Day

Employer Prevails in First Test of California's Newest Noncompete Law

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In the first known case to challenge California's legislative attempt to void noncompete agreements even for employees who do not live or work in California, the First Circuit Court of Appeals upheld the application of...more

WilmerHale

Beating the Odds: First Circuit Doubles Down on Massachusetts Decision Enforcing Noncompete Against Sports Betting Executive Newly...

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Against a growing trend of legislation and broader efforts seeking to limit or eliminate post-employment noncompetition restrictions, recent Massachusetts and First Circuit decisions in a dispute between DraftKings and one of...more

Benesch

First Circuit Declines to Enforce California’s Out-of-State Noncompete Ban

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On September 26, 2024, a Boston-based federal appeals court refused to extend California’s sweeping noncompete ban to agreements that were signed outside the state and governed by another state’s law....more

Seyfarth Shaw LLP

DraftKings Dispute with Former Executive Presents Battle Over Choice of Law for Non-Compete Agreements

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The ongoing battle between DraftKings Inc. and its former executive, Michael Hermalyn, remains contentious, with the District of Massachusetts’ decision to enforce Hermalyn’s non-compete now appealed and argued to the First...more

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

California Appeals Court Finds Employer’s Arbitration Agreement With Cost-Sharing and Out-of-State Law Provisions Unconscionable

In a recent ruling, a California appeals court found an arbitration agreement with an eyewear store employee that was presented on a take-it-or-leave-it basis required an arbitrator to apply the laws of another state,...more

Sheppard Mullin Richter & Hampton LLP

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

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

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

Washington State Updates and Clarifies Noncompetition and Nonsolicitation Law

The 2024 Washington State Legislature passed Substitute Senate Bill (S.S.B.) 5935 in February 2024, and Governor Jay Inslee signed the bill into law on March 13, 2024, updating and clarifying Washington law regarding...more

Health Care Compliance Association (HCCA)

But we have an arbitration clause: Considerations when hiring Californians

It’s 4:45 p.m. on Friday. The human resources (HR) director calls and tells you that your company—or if you are outside counsel, your client—is finally expanding their sales operation to the West Coast. As part of that...more

Littler

Georgia Courts May Not Apply Foreign Law to Restrictive Covenants That Do Not Comply with the Georgia Restrictive Covenants Act

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On September 6, 2023, the Georgia Supreme Court reaffirmed that Georgia courts must first determine whether a restrictive covenant is enforceable under Georgia law before applying a foreign choice-of-law provision....more

FordHarrison

Noncompete News: The More Things Change, the More They Remain the Same: Georgia Supreme Court Addresses Choice of Law Provisions...

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Historically, Georgia courts have declined to apply another state’s law to determine whether to enforce restrictive covenants against a Georgia employee, regardless of whether the agreement stated that another state’s law...more

Ward and Smith, P.A.

Does Your Organization Use Non-Compete, Non-Solicitation, and Nondisclosure Provisions? Employer Best Practices for Restrictive...

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It is no hidden secret that many employers use various restrictive covenants to protect their trade secrets, confidential information, goodwill, and customer relationships.  For example, employers often use non-compete...more

Fisher Phillips

10 Takeaways as New Jersey Set to Drastically Limit Non-Competes and Other Restrictive Covenants

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The New Jersey legislature is currently considering legislation that would add the state to the growing list of jurisdictions that have significantly limited the scope and enforceability of non-competition agreements and...more

Mitchell, Williams, Selig, Gates & Woodyard,...

Non-Compete Agreements: Increased Litigation on the Backside of the "Great Resignation"

Our business clients tell us everyday what we are all seeing in the headlines on a regular basis: employees are hard to hire and retain. Some commentators have coined the term “the great resignation” to aptly describe the...more

Payne & Fears

Key California Employment Law Cases: March 2022

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DePuy Synthes Sales Inc. v. Howmedica Osteonics Corp., 28 F.4th 956 (9th Cir. 2022) - Summary: Motion to transfer venue was properly denied where forum-selection clause in employment agreement was void under California...more

CDF Labor Law LLP

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

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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

Epstein Becker & Green

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

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

BCLP

Colorado Law May Govern Noncompete Despite Choice-Of-Law Provision

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Colorado law is not particularly friendly to noncompete agreements. A Colorado statute prohibits all such agreements unless they fall within one of four specific exemptions....more

CDF Labor Law LLP

Employee Prevented from Pursuing Class Claims For Unpaid Wages

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Last week a California Employer secured a victory when the California Court of Appeal held that the employer’s general California choice-of-law provision in its employment agreement did not entitle the employee to pursue...more

Snell & Wilmer

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

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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

Sheppard Mullin Richter & Hampton LLP

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

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

Farrell Fritz, P.C.

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

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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

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