News & Analysis as of August 21, 2025

Restrictive Covenants

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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 -

[Podcast] Mintz On Air: Practical Policies — A Private Equity Non-Compete Primer

Mintz on 7/16/2025

Member Jen Rubin is joined by Associate Tom Pagliarini to discuss the strategic use of restrictive covenants in private equity transactions. This episode is part of a series of conversations designed to help employers...more

Mintz On Air: Practical Policies — A Private Equity Non-Compete Primer

Mintz - Employment Viewpoints on 7/16/2025

FTC Noncompete Ban Could Harm Buyers And Sellers In M&A

Flaster Greenberg PC on 5/11/2023

This article originally ran in Law360 on February 10, 2023. All rights reserved. As federal and state governments consider limiting or prohibiting employee noncompetition agreements or other restrictive covenants, the...more

Don’t Forget Taxes When Negotiating Non-Competes

Steptoe & Johnson PLLC on 1/27/2023

Exception to FTC Proposal Although the Federal Trade Commission (FTC) has proposed a ban on non-compete agreements, the proposal contains an exception in certain business acquisitions where the seller enters into a...more

Court of Chancery Strikes Down Restrictive Covenants Designed to Protect Private Equity Investments Beyond the Target

Troutman Pepper Locke on 1/20/2023

Recently, the Delaware Court of Chancery issued a decision regarding restrictive covenant agreements that will likely have an immediate impact on the scope of restrictive covenants in private equity transactions. In the...more

Buyer (and Seller) Beware: The FTC Is and Will Come for Your M&A Non-Competes

Sheppard Mullin Richter & Hampton LLP on 6/22/2022

Since President Biden’s July 2021 direction to the Federal Trade Commission (“FTC”) to “curtail the unfair use of non-compete clauses and other clauses or agreements that may unfairly limit worker mobility,” the FTC has...more

SC body bag noncompete case exhumed, revisited

Burr & Forman on 10/23/2018

Two years ago, we wrote about a noncompete decision in which a special referee found a business seller had breached a sales agreement by violating both a noncompete covenant and an exclusive sales provision contained in the...more

South Carolina Court of Appeals Says 150-Mile Geographic Restriction in Non-Compete is Unreasonable

Parker Poe Adams & Bernstein LLP on 5/11/2016

South Carolina courts evaluate the enforceability of non-compete provisions executed in the employment context and in connection with the sale of the business under the same reasonableness test. To be enforceable in South...more

North Carolina Courts Are Forbidden To “Blue Pencil” An Unenforceable Non-Compete

Seyfarth Shaw LLP on 4/5/2016

Reversing a 2-1 decision of the North Carolina Court of Appeals, the state’s Supreme Court held unanimously that an assets purchase-and-sale contract containing an unreasonable territorial non-competition restriction is...more

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