News & Analysis as of

Former Employee Restrictive Covenants Employment Litigation

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

Parker Poe Adams & Bernstein LLP

Customer Non-Solicitation Restrictions Face Increasing Scrutiny

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

BCLP

HK High Court Refuses to Enforce a 12-month Worldwide Non-compete Covenant

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In Manulife Financial Asia Limited and Kenneth Joseph Rappold & Others [2024] HKCFI 989 (date of decision: 5 April 2024), the Hong Kong High Court refused a company’s application to enforce a 12-month non-compete clause...more

Littler

Dutch Employer Paid Dearly for an Offer to Buy Out a Non-Compete Clause

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In a recent matter before the Arnhem-Leeuwarden Appellate Court, an employer in the Netherlands attempted to hold a former employee to his non-compete clause. After the employee had terminated his employment contract, the...more

Seward & Kissel LLP

Employment Litigation Roundup: December 2023

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Delaware court declines to enforce restrictive covenants in LLC agreement but grants interlocutory appeal. In Sunder Energy v. Jackson, et al., a company, Sunder, sued a former employee, Jackson, for breaching a...more

Troutman Pepper Locke

Seventh Circuit Revives McDonald's Employee No-Poach Litigation

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In June of 2022, McDonald’s obtained a judgment on the pleadings, ending antitrust litigation challenging the legality of the no-hire restraints it previously included in its franchise agreements. More than a year later, the...more

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

Georgia Appellate Court Says Employee Nonsolicitation Covenant Not Enforceable Without Express Geographic Limitation

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

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

Claim Employer Exaggerated Scope of Noncompete Survives Motion to Dismiss in Illinois Federal Court

In a recent decision, a federal trial court in Illinois allowed an employee’s tortious interference claim to continue against his former employer alleging it had exaggerated the reach of a noncompete agreement that he had...more

Poyner Spruill LLP

Another Reason to Revisit Non-Competes: New Risk of NLRA Charges

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Following the recent declaration that certain confidentiality and non-disparagement clauses in severance agreements are unlawful, the National Labor Relations Board (NLRB) General Counsel released a memo on May 30, 2023 (GC...more

Parker Poe Adams & Bernstein LLP

North Carolina Business Court Dismisses Overbroad Non-Compete

When we are asked by a client to review their form employee non-competition agreement, we often see companies using documents found on the internet that were clearly written for use in states other than North Carolina. Last...more

Bodman

Sixth Circuit Upholds Non-Compete Agreement Based on “Flexible Language” in Preliminary Injunction

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A recent Sixth Circuit decision upholding an employer’s non-compete agreement with a former employee highlights the need for legal counsel to craft preliminary injunction language in such matters which reflects the unique...more

Sheppard Mullin Richter & Hampton LLP

Void vs. Voidable: The Distinction That Can Make or Break a Tortious Interference Claim in Light of the Great Resignation

Over the past two years, employee mobility seems to be at an all-time high. In fact, the labor market is so fluid that pundits and experts often refer to it as the “Great Resignation.” Although employee mobility can be a...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

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

Fisher Phillips

Employees Laid Off As A Result Of COVID-19 Ask Courts To Find Their Non-Compete Agreements Unenforceable

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Since the onset of COVID-19 and the related business shut-downs, employers across the country have been forced to make the difficult decision to lay off or terminate many of their employees. Of the tens of millions who have...more

Hogan Lovells

Employment News: PHI, age discrimination, breach of contract

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What's in a name? Return to work was a return to employee's old role - In ICTS (UK) Ltd v Visram the Court of Appeal confirmed that an employee was entitled to receive long term disability benefit until he was able to...more

ArentFox Schiff

Enforcing Non-Compete and Non-Solicitation Provisions in Virginia: Three Recent Takeaways From a Virginia Trial Court

ArentFox Schiff on

In a recent opinion, the Fairfax Circuit Court deemed unenforceable the non-compete and employee non-solicitation provisions of two doctors who had performed work for the United States Army on behalf of a government...more

FordHarrison

Non-Compete News: Georgia Court Holds Contractor Owes Fiduciary Duty/Duty of Loyalty

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In late 2019, the Northern District of Georgia (Atlanta federal court) addressed the duties owed when an independent contractor leaves one trucking company to work for another. In Wind Logistics Prof’l v. Universal Truckload,...more

Faegre Drinker Biddle & Reath LLP

Colorado Court of Appeals Declines to Revise Overly Broad Noncompetition Agreements

Colorado employers may want to consider whether their noncompetition agreements are narrowly tailored to meet their needs or whether some revision may be prudent, in light of a decision rendered by the Colorado Court of...more

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

Louisiana Court Finds Nonsolicitation/Noncompetition Agreement Is Enforceable

When Jay Baker, the vice president of Causin, L.L.C., quit to create a competing business, Causin sued to enforce Baker’s nonsolicitation/noncompetition agreement. Baker defended the claim in part by arguing the agreement’s...more

McDermott Will & Emery

Aerospace & Defense Series: Antitrust Risks for Aerospace and Defense Contractors in Employment Practices

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As highlighted in a recent lawsuit, aerospace and defense contractors can face various antitrust risks when using certain tactics to prevent other companies from hiring their employees. See Hunter v. Booz Allen Hamilton...more

Littler

Unfair Competition: What Happened in 2018, and What's in Store for 2019

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From sweeping legislation to unexpected case law, and everything in between, 2018 brought a lot of changes to unfair competition law....more

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

Massachusetts Court Provides Guidance on Choice of Law and Forum Selection Clauses in Restrictive Covenants

With Massachusetts’s comprehensive noncompete law taking effect on October 1, 2018, many employers are reviewing and likely revising their restrictive covenants to ensure that they are compliant with the new law. In...more

Foley & Lardner LLP

Non-Compete: Who is the Bad Actor?

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Against the backdrop of a continuing trend of low rates of unemployment throughout the United States, there has been a recent surge of people searching for new and better jobs. As a result, there has also been increased...more

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