News & Analysis as of July 30, 2025

Corporate Counsel

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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 -

Delaware Court Confronts Issue of First Impression: When a Company Attempts to Enforce a Noncompete Seeking Only Damages, Does the...

Foley & Lardner LLP on 7/15/2025

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

Final Word on Final Rule? Texas District Court Eviscerates FTC’s Non-Compete Ban

Sheppard Mullin Richter & Hampton LLP on 8/22/2024

On July 3, 2024, Judge Ada Brown of the U.S. District Court for the Northern District of Texas entered a limited, preliminary injunction barring the Federal Trade Commission (“FTC”) from enforcing its controversial Final Rule...more

Still On Track, For Now: Pennsylvania Court Denies Request to Block FTC Non-Compete Ban, But Other Challenges Continue

Fisher Phillips on 7/25/2024

A Pennsylvania federal judge has just declined to issue an order to preliminarily block the FTC’s non-compete ban ahead of its September 4 effective date. The court rejected the employer’s argument that the rule is an...more

Texas Federal Court Temporarily Blocks FTC Non-Compete Rule for a Limited Group of Employers – Now What?

Saul Ewing LLP on 7/8/2024

As most employers are aware, and as we previously discussed in an April blog post, the Federal Trade Commission (“FTC”) enacted a sweeping administrative rule banning the vast majority of non-competition agreements in the...more

The 8th Circuit Affirms a Preliminary Injunction Barring an Ex-Cigna Executive from Joining CVS Based on Two-Year Non-Compete...

Proskauer - Trade Secrets on 6/26/2024

On January 26, 2023, Cigna Corp. (“Cigna”) sued CVS Health Corp. (“CVS”) and its newly hired chief product officer Amy Bricker (“Bricker”), in the US District Court for the Eastern District of Missouri, for allegedly...more

Delaware Court Of Chancery Refuses To Enforce Both Choice of Law Provision And Nationwide Non-Compete

Proskauer - Law and the Workplace on 9/6/2023

On August 31, 2023, the Delaware Court of Chancery held, with respect to a non-compete provision in an employment agreement, that: (1) the choice of law provision selecting Delaware was “not necessarily binding”; and (2) the...more

Nevada Supreme Court Affirms That Non-Compete Agreements Must be Limited in Geographical Scope

Payne & Fears on 8/7/2018

Although rules against broad geographic restrictions in non-compete agreements may be outmoded or “hopelessly antiquated” in this digital age (see Accelerated Care Plus Corp. v. Diversicare Mgmt. Servs. Co., No....more

Is Customer Information A Trade Secret? Not So Fast!

Farrell Fritz, P.C. on 11/2/2017

Under what circumstances do customer information and business operations constitute “trade secrets” that may be enjoined from use by a former employee ? A recent decision by Justice Elizabeth H. Emerson on this issue serves...more

Don’t Friend My Friends: Nonsolicitation Agreements Should Account for Social Media Strategies

Orrick - Trade Secrets Group on 2/16/2017

As social media becomes an important part of many companies’ sales and branding strategies, issues relating to companies’ ability to protect their investments in such strategies are emerging. Indeed, this blog has previously...more

Court Order to U-Haul: Haul Your Non-Compete Clauses Out of California

Orrick - Trade Secrets Group on 12/9/2016

A California appellate court recently upheld a permanent injunction in Robinson v. U-Haul Company of California barring U-Haul from enforcing its non-compete covenants in California. U-Haul also was required to pay over...more

Texas Court of Appeals Finds Noncompete Agreement Inapplicable to Former President’s Post-Termination Activities Due to the...

Seyfarth Shaw LLP on 12/3/2016

On October 27, 2016, the Fort Worth Court of Appeals affirmed a lower court’s order denying an application for temporary injunction seeking to enjoin Thomas Musgrave, the former president of Henry F. Coffeen III Management,...more

Federal Precedents Under the DTSA Have Arrived

Seyfarth Shaw LLP on 8/2/2016

While the Defend Trade Secrets Act of 2016 (“DTSA”) has only been in effect for a few months, the first wave of cases raising DTSA claims have started to generate federal decisions. In what appears to be the first substantive...more

Rhode Island Trial Court Decision Could Spell Trouble for Employers Seeking to Enforce Restrictive Covenants Against Healthcare...

Ogletree, Deakins, Nash, Smoak & Stewart,... on 4/25/2016

One of an employer’s first steps in a suit against a former employee to enforce a restrictive covenant is to seek a preliminary injunction to prevent the employee from continuing to violate his or her contractual obligations....more

Trend In The Courts: It’s Getting Harder To Obtain Preliminary Injunctions In Restrictive Covenant Cases

Seyfarth Shaw LLP on 11/20/2015

In recent weeks, courts almost routinely have been denying preliminary injunctive relief in cases alleging violation of non-compete and similar employment agreements. Three examples: Burleigh v. Center Point Contractors,...more

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