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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
In August 2024, a Texas federal court struck down a broad Federal Trade Commission (FTC) rule that would have banned the vast majority of employee non-competition agreements. ...more
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
On July 1, 2025, Florida’s Contracts Honoring Opportunity, Investment, Confidentiality, and Economic Growth (CHOICE) Act took effect, ushering in substantial changes to the state’s non-compete law under Florida Statute §...more
The Massachusetts legislature passed the Massachusetts Noncompetition Agreement Act (MNAA) in 2018, culminating a longstanding effort to balance employers’ rights to protect legitimate business interests—such as trade...more
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
This article provides a brief history of California’s pro-competition law and describes the stalled federal initiative to extend a similar noncompete ban nationally, notwithstanding the overlapping policy interests expressed...more
In Fortiline, Inc. v. McCall, the plaintiffs sought to enforce a noncompetition agreement against its former employees through a preliminary injunction. The court denied the injunction, holding the noncompetition agreements...more
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
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
On June 13, 2025, the Massachusetts Supreme Judicial Court (SJC) issued a significant decision in Miele v. Foundation Medicine, Inc. (SJC-13697) confirming that the Massachusetts Noncompetition Agreement Act (the “MNAA”) does...more
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
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
On April 24, 2025, the Florida legislature passed the Florida Contracts Honoring Opportunity, Investment, Confidentiality, and Economic Growth, or CHOICE, Act. The CHOICE Act goes into effect on July 1, 2025. The CHOICE...more
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
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
Imagine you’re a private equity firm. You buy a company, and you want to retain and incentivize key employees, so you give them some equity in the form of incentive units. You also want to prevent them from running off and...more
Wolfspeed, a Durham-based silicon carbide semiconductor business, has plenty on its plate these days amid media reports of an impending bankruptcy reorganization. While such a filing would be aimed at a short(ish) judicial...more
Last year in April, the Federal Trade Commission (FTC) published a rule to ban most non-compete agreements nationwide. Within hours the rule was challenged in courts across the country, and after months of federal litigation...more
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
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
Following lobbying efforts by the now Miami-based hedge fund Citadel, Florida governor Ron DeSantis is poised to sign into law a new bill allowing non-compete clauses to extend up to four years for certain employees. Anyone...more
It’s hard to keep up with all the recent changes to labor and employment law, especially given the rapid pace at which the new administration has been moving on initiatives impacting the workplace and beyond. For the latest...more
Earlier this month, the North Carolina Business Court addressed important issues surrounding noncompete and nondisclosure agreements, providing valuable insights for employers navigating these complex areas of employment law....more
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