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Non-Compete Agreements › Out-of-State Companies

Non-Compete Agreements are contracts, typically formed in employment or business purchase contexts, where one party agrees to refrain from engaging in a particular line of work or pursuing business within a... more +
Non-Compete Agreements are contracts, typically formed in employment or business purchase contexts, where one party agrees to refrain from engaging in a particular line of work or pursuing business within a certain industry or locale. The purpose of these agreements is to protect employers or business purchasers from competition stemming from former employees or former owners of a business. less -
Foley & Lardner LLP

Did the Eleventh Circuit Just Open the Door to Potential Extraterritorial Application of California’s Noncompete Ban?

Foley & Lardner LLP on

A recent Eleventh Circuit Court of Appeals decision highlights the importance (and potential limits) of robust choice-of-law provisions in noncompete agreements, as courts and employers far-flung from California grapple with...more

Lathrop GPM

Minnesota Federal Court Grants Franchisor’s Motion for Preliminary Injunction for Noncompete and Lanham Act Violations by...

Lathrop GPM on

A federal court in Minnesota recently granted franchisor Snap Fitness Inc.’s motion for preliminary injunction against an out-of-state franchisee that announced its intentions to open a competing gym during the term of the...more

Saul Ewing LLP

First Circuit Says Massachusetts Non-Compete Agreement Enforceable in California Despite State’s Ban

Saul Ewing LLP on

Last month, in DraftKings Inc. v. Hermalyn, the First Circuit Court of Appeals issued a decision concerning the application of California’s non-compete ban to agreements formed outside the state. Broadly, the decision...more

Ervin Cohen & Jessup LLP

­California Opens its Doors to Commerce by Voiding Out-Of-State Non-Compete Agreements

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You may have heard the half-serious joke that California acts as its own independent country. One example of this is California’s strong disfavor of non-compete agreements, which stands in contrast with the rest of the...more

FordHarrison

Noncompete News: The More Things Change, the More They Remain the Same: Georgia Supreme Court Addresses Choice of Law Provisions...

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Historically, Georgia courts have declined to apply another state’s law to determine whether to enforce restrictive covenants against a Georgia employee, regardless of whether the agreement stated that another state’s law...more

Littler

California Reaches Across State Lines to Invalidate Employee Non-Compete Agreements

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We are in the final stretch of the California legislature’s first year of a two-year session. One bill that sped through the legislative process—without any registered opposition—is Senate Bill 699, which extends the state’s...more

Sheppard Mullin Richter & Hampton LLP

California Labor Code Section 925: A Word of Caution for Out-of-State Employers of California Employees

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Employers faced with an apparent trade secret misappropriation by former employees must decide what jurisdiction to bring suit in.  For an employer headquartered outside of California who employs California residents  working...more

Adler Pollock & Sheehan P.C.

Noncompetes with Massachusetts Employees: Subsidizing a Former Employee’s “Garden Leave”

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Effective October 1, 2018, employers in Massachusetts, Rhode Island, and other states seeking to hold Massachusetts employees to noncompete agreements must meet the requirements of a new law passed by the Massachusetts...more

Fisher Phillips

Choice-of-Law and Choice-of-Forum May Depend on the Choice of Where to File and When: Multi-State Employers Continue to Face...

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Employers who operate in a multi-state environment should take note of a recent case out of the Sixth Circuit (which governs employers that operate in Kentucky, Michigan, Ohio, and Tennessee.) Stone Surgical, LLC v. Stryker...more

Morris James LLP

Court Of Chancery Rejects Application Of Delaware Law

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This is an important decision on choice of law. The Court held that the parties’ choice of Delaware law to govern the terms of a noncompete agreement was unenforceable in the face of contrary public policy of California that...more

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