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Employment Litigation Contract Disputes Employment Contract

Morris James LLP

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

Morris James LLP on

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

Tucker Arensberg, P.C. on

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.

Farrell Fritz, P.C. on

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

Warner Norcross + Judd on

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

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

Jackson Lewis P.C. on

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

Miller Canfield on

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

Fox Rothschild LLP on

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.

Dickinson Wright on

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

ArentFox Schiff on

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

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’

Morgan Lewis on

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

BCLP

Hong Kong High Court Grants Injunction to Enforce Restrictive Covenants

BCLP on

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

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

Troutman Pepper Locke on

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

Fox Rothschild LLP on

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

Proskauer - Labor Relations Update

D.C. Circuit Erases NLRB Joint Employer Order After Google-Cognizant Contract Lapses

The D.C. Circuit’s April 22, 2025 decision offers an important lesson on joint-employer cases under the National Labor Relations Act (“NLRA” or “Act”): without an ongoing contractual relationship, the dispute can vanish in a...more

Blake, Cassels & Graydon LLP

Interprétation des dispositions relatives au licenciement : Approches distinctes des tribunaux de la Colombie-Britannique et de...

Aperçu - Il est de plus en plus difficile pour les employeurs de déterminer si les dispositions relatives au licenciement incluses dans leurs contrats d’emploi seraient jugées exécutoires advenant leur contestation devant...more

Littler

The Netherlands: Those Who Do Not Provide Clear Information Pay the Price

Littler on

An employer in the Netherlands has to inform an employee in writing or electronically of the key terms of employment, including any bonus plan, within one month of starting work.  This obligation to provide information ensues...more

Foley & Lardner LLP

Complying With Recent Guidance From Delaware Courts Regarding Enforcement of Noncompetes

Foley & Lardner LLP on

In line with the national trend making noncompetes more difficult to enforce, a number of Delaware courts have recently refused to “blue pencil” overbroad noncompetition agreements and have stricken them in their entirety. As...more

BCLP

HK Court of Appeal confirmed modern test on penalties in the employment context

BCLP on

In the recent important decision of Law Ting Pong Secondary School v Chen Wai Wah [2021] CA 873, the Hong Kong Court of Appeal adopted the modern test for penalty clauses as laid down in the UK Supreme Court decision in...more

BCLP

Timberbrook v Grant Leisure: staged payments, variations and termination clause

BCLP on

The recent English case of Timberbrook Ltd v Grant Leisure Group Ltd [2021] EWHC 1905 (TCC) (Date of Judgement: 16 July 2021), which was heard in the Technology and Construction Court, is a good illustration of the factors...more

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