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Employment Contract Unenforceable Contract Terms Employment Litigation

Fisher Phillips

Michigan Standard Employment Forms May No Longer Hold Up in Court: 2 Steps Employers Should Take Now

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The Michigan Supreme Court just ruled that many boilerplate forms employees sign on day one – sometimes known as adhesive employment agreements – are no longer automatically enforceable if they shorten the timeframe for...more

Troutman Pepper Locke

Restrictive Covenants Unenforceable Where Consideration Forfeited

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In North American Fire Ultimate Holdings, LP v. Alan Doorly, the Delaware Court of Chancery held that the restrictive covenants included in an incentive unit grant agreement were unenforceable when the units received by the...more

Jenner & Block

Delaware Supreme Court Reaffirms Reluctance to Blue-Pencil Overbroad Restrictive Covenants in Sunder v. Jackson

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The Delaware Supreme Court’s decision in Sunder Energy, LLV v. Jackson, No. 455, 2023, 2024 Del. LEXIS 407 (December 10, 2024) reaffirmed the courts’ limited willingness to modify or “blue-pencil” overbroad restrictive...more

Carlton Fields

Eleventh Circuit Holds Arbitration Agreement Unenforceable Against Spouse of Former Employee

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In Lubin v. Starbucks Corp., the Eleventh Circuit Court of Appeals considered defendant Starbucks’ appeal of an order denying its motion to compel arbitration of the plaintiffs’ lawsuit alleging that Starbucks sent deficient...more

Stikeman Elliott LLP

Hungry for Consideration in Employment Agreements: Are Peppercorns Off the Menu for Employers?

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In the recent decision of Sui v HungryPanda Tech Ltd., 2024 BCSC 1856 (“HungryPanda”), the Supreme Court of British Columbia invalidated a termination provision in an employment agreement by finding the employer had failed to...more

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

Ontario Court Reaffirms Importance of Clear and Compliant Language in Employment Agreements

In December 2024, the Court of Appeal for Ontario released its highly anticipated decision in Dufault v. Ignace (Township). The three-judge panel determined that the “for cause” termination clause contained in the employee’s...more

Littler

Ontario, Canada Court Finds Termination Provisions Unenforceable and Awards Employee Punitive Damages

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Wilds v. 1959612 Ontario Inc., 2024 ONSC 3452, involves a wrongful dismissal action in which the employee brought a motion for summary judgment. The court found the termination provisions in her employment agreement were...more

Littler

Ontario, Canada Court Finds Termination Clauses in Fixed-Term Employment Agreement Unenforceable

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In Dufault v. The Corporation of the Township of Ignace, 2024 ONSC 1029, the Ontario Superior Court of Justice held that the termination provisions of a fixed-term employment contract were illegal and unenforceable because...more

BakerHostetler

At Long Last, California District Court Permanently Enjoins Enforcement of AB 51

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There are times when one would rather not be proven right. Nearly four years ago, a California district court invalidated AB 51, which sought to prohibit mandatory arbitration by, among other things, calling for criminal...more

Stikeman Elliott LLP

Fixed in Stone - Fixed Term Remains Secure Despite Invalid Termination Clause

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The Ontario Superior Court of Justice recently released its decision in Kopyl v Losani Homes (not yet cited) (the “Decision”), providing insight into the enforceability of fixed terms in employment agreements in circumstances...more

Stikeman Elliott LLP

“Fixing” the Term of Employment: Fixed-Term Agreement defends against Wrongful Dismissal Claim

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In the recent Steele v. The Corporation of the City of Barrie, 2022 ONSC 7245 decision (“Steele”), the Ontario Superior Court of Justice provided some insight into when longer term fixed-term contracts can be enforceable....more

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

Ninth Circuit Blocks California’s Ban on Mandatory Arbitration in Employment

On February 15, 2023, the Ninth Circuit Court of Appeals blocked a 2020 California law that attempted to prohibit employers from requiring employees and job applicants to agree to arbitration as a condition of employment. The...more

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

Louisiana Restrictive Covenant Signed by C-Suite Employee After Termination Is Unenforceable, State Appeals Court Holds

In Louisiana, restrictive covenants—known locally as “no competes”—are unenforceable by statutory default. The applicable statute declares, “Every contract or agreement, or provision thereof, by which anyone is restrained...more

Littler

Ontario, Canada Court Decides Employment Contract’s Unenforceable Confidentiality and Conflict-of-Interest Clauses Invalidated All...

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Two years ago in Waksdale v. Swegon North America Inc., 2020 ONCA 391,  the Ontario Court of Appeal established the proper method for determining whether a termination clause in an employment agreement is enforceable. ...more

FordHarrison

Non-Compete News: Georgia Court Holds Non-compete and Non-solicit of Employee Provisions With Missing Territory Unenforceable and...

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Earlier this year, in Steuer v. Tomaras, et al., Georgia’s Statewide Business Court again refused to modify certain restrictive covenants that were missing a territory. Dr. Steuer, a former partner of the defendant doctors,...more

Littler

Ontario, Canada Appeal Court Decides Non-competition Clause in Employment Agreement Governed by Common Law is Unenforceable

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In M & P Drug Mart Inc. v. Norton, 2022 ONCA 398, the Court of Appeal for Ontario (OCA) dismissed an employer’s appeal of an application judge’s decision that a non-competition clause in an employment agreement governed by...more

Kohrman Jackson & Krantz LLP

Suing A Former Employee Under An NDA Has Substantial Risks… Even If You’re Donald Trump

In what appears to be the largest attorney fee award against a political campaign or president, an arbitrator ordered Donald J. Trump for President, Inc. to pay $1.3 million in legal fees and $17,300 in costs to former White...more

Fisher Phillips

Lessons to be Learned: Federal Appeals Court Strikes Down Non-Compete Provision and Limits Non-Solicitation Provision

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A federal appeals recently addressed two important questions in a critical restrictive covenant case, providing important guidance for employers drafting non-compete and non-solicitation provisions and underscoring how the...more

Fisher Phillips

So, You’re Saying There’s a Chance…5 Employer Takeaways to Enforce No-Hire Agreements

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In a recent decision, the Supreme Court of Pennsylvania examined whether no-hire agreements (which, as their name suggests, prohibit one business from hiring employees from another business), are enforceable under...more

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

Colorado Supreme Court Holds ‘Use-It-Or-Lose-It’ Vacation Policies Are Void in Nieto v. Clark’s Market

On June 14, 2021, the Colorado Supreme Court provided an answer to the long-standing question of whether “use-it-or-lose-it” vacation policies are permissible under the Colorado Wage Claim Act (CWCA). In the case of Nieto v....more

Littler

Pennsylvania Supreme Court Decides Issue of First Impression on “No-Hire” (or “No-Poach”) Agreements

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The Pennsylvania Supreme Court recently decided an issue of first impression regarding “no-hire” (or “no-poach”) provisions in commercial contracts between two companies. In such agreements, one company agrees not to solicit...more

Fisher Phillips

Supreme Court of Pennsylvania Provides A 7-Step Roadmap to Employers While Striking Down No-Hire Agreement

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In a decision resolving a dispute that has been pending for nearly five years, the Supreme Court of Pennsylvania just voided a no-hire provision entered into by two companies that bound one of them from hiring former...more

Littler

Ontario, Canada Court Reminds Employers that Improperly Drafted Restrictive Covenants are Unenforceable

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In Labrador Recycling Inc. v. Folino, 2021 ONSC 2195 (Labrador Recycling), Ontario’s Superior Court denied an employer’s motion for an urgent injunction to restrain its former employee from competing with it contrary to the...more

Saiber LLC

SDNY Rules that Trump Campaign Non-Disclosure is too Broad to Enforce

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In another strike against restrictive covenants in employment contracts, Judge Paul G. Gardephe of the Southern District of New York ruled in Jessica Denson v. Donald J. Trump For President, Inc. that the non-disclosure and...more

Littler

Nevada Supreme Court Rules Courts May Blue-Pencil Unreasonable Noncompetition Agreements if the Agreement Includes Modification...

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On December 31, 2020, the Nevada Supreme Court issued an opinion addressing and clarifying several issues relating to the power of the court to reform or modify an unreasonable noncompetition agreement often referred to as...more

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