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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 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
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
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
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
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
A federal court in Massachusetts recently granted, in part, a Motion for Preliminary Injunction as to enforcement of franchise agreement noncompete covenants but denied the motion as to claims of trademark infringement,...more
Maven Advantage, Inc. and Square One Storm Restoration, LLC are competing roofing businesses. Maven alleged that two employees (Couch and Daniels) stole Maven’s trade secrets (customer lists) and then quit to work for Square...more
As we continue to report, noncompete agreements have been subject to unprecedented scrutiny over the past few years. Last April, the Federal Trade Commission (FTC) finalized a rule (“Final Rule”) ostensibly banning...more
When considering whether to place employees under post-employment restrictive covenants, employers often consider including customer non-solicitation provisions in addition to or as an alternative to the traditional...more
Arizona employer cannot exclude settlement communications from former employee’s retaliation complaint - In Flores v. Rafi Law Group PLLC, the plaintiff accused her law firm employer of retaliating against her by (i)...more
In May 2024, two TD Bank entities (“TD Bank”) sued two former employees and their new employer Raymond James Financial Services, Inc. and one of its subsidiaries (together, “Raymond James”) in Connecticut federal court,...more
Louisiana noncompete agreements must comply with a statute—La. R.S. 23:921—to be enforceable. Does this statute also apply to employee nonsolicitation—or “anti-poaching”—agreements? A Louisiana appellate court recently held...more
“Magic words,” “TRAPs,” and the federal non-compete ban rising from the dead? October had several spooky developments in restrictive covenant law, but no need to be frightened! We’ve got you covered with updates, insights,...more
Earlier this year, the Federal Trade Commission (FTC) announced a Final Rule outlawing nearly all noncompete agreements between employers and employees. That Final Rule, however, was overturned at the end of August 2024....more
The U.S. District Court for the District of Arizona recently evaluated the reasonableness of two restrictive covenants—the nonsolicitation of customers and the nonsolicitation of employees—along with claims related to...more
Ex-employee’s golf outing with customer does not violate non-solicit - An auto parts manufacturer in Michigan sought a preliminary injunction against a former sales employee for violating his restrictive covenants,...more
On May 11, 2011, Georgia passed the Restrictive Covenants Act, which made enforcing employee restrictive covenants far easier than it was under Georgia common law. In an odd twist, a law that Georgia intended to make it...more
In a recent decision, a Georgia appellate panel held that an employee nonsolicitation covenant that limits what parties can do following the end of a business relationship must have an explicit geographic limitation to be...more
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
California law generally prohibits the enforcement of nonsolicitation agreements, but the law includes a narrow exception associated with the sale of a business. In Blue Mountain Enterprises, LLC v. Owen, a recent decision...more
Aggressive Attacks on Employers’ Post-Employment Restrictions Continue - Employers beware. The Department of Justice’s attack on employee restrictions has gotten a new boost in a no-poach antitrust case alleging that...more
It’s hard to keep up with all the recent changes to labor and employment law. While the law always seems to evolve at a rapid pace, there have been an unprecedented number of changes for the past few years—and this past month...more
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
Governor J.B. Pritzker recently signed into law Public Act 102-0358 (“Act”), which dramatically reforms the law in Illinois governing both noncompete and nonsolicit provisions. The Act is not retroactive, and goes into effect...more