News & Analysis as of

Employment Litigation Contract Disputes

Morris James LLP

Court of Chancery Finds Employee’s Restrictive Covenants Unenforceable for Lack of Consideration

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N. Am. Fire Ultimate Holdings, LP v. Doorly, C.A. No. 2024-0023-KSJM (Del. Ch. Mar. 7, 2025) - A contract requires consideration to be enforceable. In this case, the Court of Chancery held restrictive covenants were...more

Tucker Arensberg, P.C.

When Your New Job Isn’t What You Signed Up For: A Physician’s Guide

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Most physicians put significant thought and effort into reviewing and negotiating their employment contracts before signing. But what happens when you’ve started your new position, and now you’re noticing red flags: the call...more

Farrell Fritz, P.C.

Non-Compete Fight Yields Mixed Results in Cabrita v. Vitabyte, Inc.

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The enforceability of non-compete agreements remains an active issue in New York courts, and a recent Queens County Commercial Division case, Cabrita v. Vitabyte, Inc., offers a good example of how judges can be willing to...more

Warner Norcross + Judd

Michigan Supreme Court Reinstates “Reasonableness” Test: New Rules for Shortened Limitations Periods in Employment Contracts

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The Michigan Supreme Court recently held in Rayford v. American House Roseville I LLC that courts must review for reasonableness provisions in employment contracts that limit the amount of time within which an employee may...more

Buchalter

Late Fees, High Stakes: California Narrows Arbitration Fee Forfeiture Rule

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In its August 11, 2025 decision in Hohenshelt v. Superior Court (S284498), the California Supreme Court clarified the reach of Code of Civil Procedure Section 1281.98, the 30-day arbitration fee payment rule. While...more

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

Michigan Supreme Court Says Time Limits on Employment Claims Must Be Reasonable

On July 31, 2025, in Rayford v. American House Roseville I, LLC, the Michigan Supreme Court ruled that contractual time limitations for employment lawsuits must pass a reasonableness test....more

Jackson Lewis P.C.

Florida’s CHOICE Act Enacted: Helping Employers Read Between the Lines of the New Non-Compete Law

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Florida’s CHOICE Act, short for “Contracts Honoring Opportunity, Investment, Confidentiality, and Economic Growth” (CHOICE), is now law. For details of the Act, see Florida’s CHOICE Act Offers Employers Unprecedented Tools...more

Miller Canfield

Michigan Supreme Court - Contractually Shortened Period of Limitations in Employment Agreements May Need Another Look

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On July 31, 2025, in Tamika Rayford v American House Roseville, LLC d/b/a American House East I and American House, the Michigan Supreme Court held that boilerplate employment agreements that shorten the limitations period to...more

Fox Rothschild LLP

Gambling on Guarantees

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The current dispute between the Las Vegas Raiders (“Raiders”) and Christian Wilkins (“Wilkins”) is more than a football headline; it underscores how fragile the concept of “guaranteed” money can be—not only in sports but also...more

Dickinson Wright

Start the Clock—The Case for Including Contractual Limitations Periods in Employment Agreements.

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Contractual limitations periods provide parties on both sides of an agreement certainty regarding the filing of a potential action. But many employers do not know that they may include such contractual limitations periods in...more

ArentFox Schiff

Massachusetts Supreme Judicial Court Ruling: Noncompetition Agreement Act Does Not Apply to Forfeiture Clauses

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The Massachusetts Supreme Judicial Court (SJC) recently clarified the scope of the Massachusetts Noncompetition Agreement Act (MNAA). In Susan Miele v. Foundation Medicine, Inc., the SJC held the MNAA does not apply where a...more

Ervin Cohen & Jessup LLP

Contemporaneous Onboarding Documents May Invalidate An Employer’s “Squeaky Clean” Arbitration Agreement

Cross Country Healthcare, Inc., a healthcare staffing company, believed that it had a “squeaky clean” Arbitration Agreement with its employees. ...more

Falcon Rappaport & Berkman LLP

Delaware Chancery Court Narrows the Path for Enforceable Non-Competes: Lessons from North American Fire and Payscale

A notable trend has emerged in Delaware with respect to the enforceability of non-competes – while once considered a management-friendly jurisdiction, two recent decisions demonstrate a marked shift towards a closer scrutiny...more

Nelson Mullins Riley & Scarborough LLP

MA SJC Upholds Forfeiture for Employee Breaching Non-Solicitation Agreement

On June 13, 2025, the Massachusetts Supreme Judicial Court (SJC) ruled in Susan Miele v. Foundation Medicine, Inc., that the Massachusetts Non-Competition Agreement Act (the “Act”) does not apply to a non-solicitation...more

Mintz - Employment Viewpoints

Top Massachusetts Court Clarifies That Non-Solicitation Covenants Fall Outside the State’s Non-Compete Law

In a closely watched decision, the Massachusetts Supreme Judicial Court in Miele v. Foundation Medicine, Inc. clarified that the Massachusetts Noncompetition Agreement Act (MNAA) (G.L. c. 149, § 24L) does not apply to...more

Morgan Lewis

Massachusetts High Court Clarifies Noncompete Law’s Scope, Declines to Let Nonsolicits ‘Through the Back Door’

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In Miele v. Foundation Medicine, Inc., the Massachusetts Supreme Judicial Court (SJC) clarified that the Massachusetts Noncompetition Agreement Act (MNAA or the Act) does not apply to a forfeiture clause triggered by a breach...more

Shook, Hardy & Bacon L.L.P.

Massachusetts High Court Rules for Employer in Nonsolicitation Challenge

Although the Massachusetts Noncompetition Agreement Act expressly excludes nonsolicitation agreements from its definition of “noncompetition agreements,” the Massachusetts Supreme Judicial Court (SJC) recently responded to a...more

Morgan, Brown & Joy, LLP

Massachusetts Supreme Judicial Court Clarifies Scope of Massachusetts Noncompetition Agreement Act

On Friday, June 13, 2025, the Massachusetts Supreme Judicial Court issued its decision in Miele v. Foundation Medicine, Inc., SJC-13967, holding that forfeiture clauses tied to non-solicitation agreements were definitively...more

Holland & Knight LLP

Supreme Judicial Court Clarifies Scope of Massachusetts Noncompetition Agreement Act

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The Massachusetts Supreme Judicial Court (SJC) has ruled that a forfeiture clause triggered by a breach of a non-solicitation agreement is not a "forfeiture for competition agreement" under the Massachusetts Noncompetition...more

BCLP

Hong Kong High Court Grants Injunction to Enforce Restrictive Covenants

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In two separate decisions in April 2025, the Hong Kong High Court first refused, but then allowed, an IT company’s application for an interlocutory injunction to enforce post-termination restrictive covenants against its...more

Epstein Becker & Green

A Fact-Intensive Inquiry: How California Courts Are Resolving Authenticity Disputes of Electronically Signed Arbitration...

For more than a decade, California courts have wrestled with the challenge of how to resolve disputes over the authenticity of electronically signed arbitration agreements....more

Proskauer - Employee Benefits & Executive...

Tenth Circuit Affirms Distinction Between Forfeiture and Penalty for Competition

In Lawson v. Spirit AeroSystems, Inc., the U.S. Court of Appeals for the Tenth Circuit upheld the forfeiture of certain stock awards for violating a covenant not to compete. Like the Seventh Circuit in LKQ Corp. v....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

Fox Rothschild LLP

When Work Becomes a Family Affair

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At first, it sounds like a dream: hiring your cousin to help with marketing, bringing your sister on as a partner, or giving your son-in-law a “small stake” in the business. It feels easy, natural, and trust-based. But...more

Parker Poe Adams & Bernstein LLP

Commission Plans Should Address Salespersons' Departure

When a commissioned salesperson leaves employment, the most common dispute we encounter involves that employee’s entitlement to payment of commissions after their departure date. ...more

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