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Choice-of-Law Non-Compete Agreements Restrictive Covenants

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

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

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

Seventh Circuit Rules Forfeiture-for-Competition Clauses Under Delaware Law Enforceable and Not Subject to Reasonableness Review

In 2021, LKQ Corporation (LKQ) filed suit against Robert Rutledge, its former plant manager, in the U.S. District Court for the Northern District of Illinois. LKQ alleged that Rutledge’s working for a competitor within nine...more

Seyfarth Shaw LLP

50 State Desktop Reference - What Businesses Need to Know about Non-Competes and Trade Secrets Law - 2024

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As we navigate a rapidly evolving business and legal landscape, Seyfarth proudly presents the latest edition of our flagship publication, the 50-State Non-Compete Desktop Reference. Crafted with precision by our nationally...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

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

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

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

U.S. District Court in Massachusetts Weighs in on the ‘Material Change’ Doctrine and Nurse Noncompetition Exemption

A recent ruling by the U.S. District Court for the District of Massachusetts in a restrictive covenant case, Ascend Learning, LLC v. Bryan and SPIN-Learning, LLC, No. 22-cv-11978 (August 16, 2023), has implications for the...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

Sheppard Mullin Richter & Hampton LLP

Colorado’s New Restrictive Covenant Law Now Effective

On August 10, 2022, Colorado House Bill 22-1317 became law. Following the national trend of limiting employer use of non-compete and non-solicit covenants, Colorado now prohibits the use of non-competes and non-solicits...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

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

Epstein Becker & Green

Our Employee Moved to California During the Pandemic, Can We Enforce Their Non-Compete? Choice of Law Analysis Will Matter

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Many employers have granted their white collar workers increased flexibility to work remotely in response to the pandemic. As a result, some employees have moved away from the areas surrounding their offices and into places...more

Seyfarth Shaw LLP

Location, Location, Location

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As in real estate, as in law. A recent ruling in the USDC for the District of Colorado demonstrates that procedural considerations of where to file may often have substantive consequences. Plaintiff LS3, Inc. (“LS3”) sued...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

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

Seyfarth Shaw LLP

6th Circuit Bolsters Employer’s Right to Contract for Chosen Law

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As many of our blog readers will know, the enforceability of restrictive covenants often depends on which state’s law applies to the dispute. For example, California is well known for refusing to enforce employee...more

Faegre Drinker Biddle & Reath LLP

Delaware Chancery Court Declines to Blue-Pencil Overly Broad Noncompete Agreement; Casts Doubt on Choice of Law Provisions

A recent Delaware Chancery Court opinion has elucidated Delaware’s approach to judicially modifying, or “blue-penciling,” overly broad noncompete agreements and deferring to parties’ choice of law provisions. The case, FP UC...more

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