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Jenner & Block

Client Alert: Employers Beware: Employees Are Seeking Damages for Unenforceable Noncompetes

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We have seen a rise in employees going on the offensive and suing their former employers for damages for not informing them that their noncompete is invalid under the applicable state law or for exaggerating the scope of a...more

Wilson Sonsini Goodrich & Rosati

Non-Solicitation Clauses Face Antitrust Scrutiny: Key Takeaways from St. Joseph's v. NAPA

A recent decision from the United States District Court underscores the antitrust risks of non-solicitation clauses in service agreements. In St. Joseph’s Hospital Health Center v. American Anesthesiology of Syracuse, P.C. et...more

Fisher Phillips

Washington Just Turned Many Non-Solicitation Agreements into Illegal Non-Competes: Tips on How You Can Still Protect Your Business

Fisher Phillips on

Washington state law just changed in a way that might have made your company’s non-solicitation agreements unenforceable and illegal. Recent amendments to the state non-compete statute took effect on June 6 and significantly...more

A&O Shearman

New Seventh Circuit Decision Brings Increased Risk for No-Hire and Non-Solicitation Clauses

A&O Shearman on

On August 25, 2023, in Deslandes v. McDonald’s, the Seventh Circuit Court of Appeals vacated and remanded a district court’s dismissal of an antitrust case that challenged no-hire and non-solicitation clauses in McDonald’s...more

Davies Ward Phillips & Vineberg LLP

Employers Beware: Amendments to the Canadian Competition Act’s Criminal Conspiracy Provisions Take Effect

Amendments to the Canadian Competition Act (Act), taking effect on June 23, 2023, will make it a criminal offence for unaffiliated employers to agree, conspire or arrange to: •“fix, maintain, decrease or control salaries,...more

Latham & Watkins LLP

New Minnesota Law Bans Most Post-Employment Non-Competes: 6 Key Takeaways

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Minnesota has enacted one of the strictest state non-compete laws in the US, banning almost all post-termination non-competes between employers and their employees and between employers and certain independent contractors...more

Littler

Minnesota Is Poised to Enact a Law Banning Virtually All Non-Compete Agreements

Littler on

A proposed law banning virtually all covenants not to compete (also known as non-compete agreements) is headed to the Minnesota State Senate and House of Representatives, where it is widely expected to pass.  Once it arrives...more

Cooley LLP

Crossing the Atlantic: Comparison of US and UK Employment Concepts

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For US companies contemplating an expansion into the UK, there are a number of employment-related factors to consider, as the requirements for employers and rights of employees differ significantly across the pond. Below,...more

White & Case LLP

Four Takeaways From The FTC’s Unprecedented Crackdown On Noncompete Agreements

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The Federal Trade Commission (FTC) kicked off 2023 by using Section 5 of the FTC Act to take legal action against three companies and two individuals, forcing them to drop noncompete provisions. This is the first time that...more

Bennett Jones LLP

Demise of the Restricted Covenant?

Bennett Jones LLP on

Recent amendments to the Employment Standards Act, 2000 (Ontario) and the Competition Act (Canada) may be sounding the death knell for certain restricted covenants in Ontario—both non-competition covenants given by employees,...more

Seyfarth Shaw LLP

Federal Court Provides Insight on Meaning of “Solicitation” and Plaintiff’s Burden on Motion for Preliminary Injunction

Seyfarth Shaw LLP on

A federal court in Texas recently provided useful insights on what constitutes “solicitation” by a former employee under that employee’s restrictive covenant with his former employer, and the court provided further insights...more

Bennett Jones LLP

New Guidance on Ontario's Disconnect from Work Policy and Ban on Non-Competes

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As we discussed in our previous blog, Ontario Bill 27: Working for Workers Act, 2021 is Now the Law, the Ontario government amended the Employment Standards Act, 2000 (the ESA) on December 2, 2021 to include a prohibition on...more

Littler

Colorado Criminalizes Certain Restrictive Covenants

Littler on

Colorado’s legal landscape continues to shift. Through one sentence in a 304-page bill enacted in 2021, SB 21-271 criminalized violations of Colorado’s restrictive-covenant statute, section 8-2-113, C.R.S.  Effective March 1,...more

Fisher Phillips

Supreme Court of Pennsylvania Provides A 7-Step Roadmap to Employers While Striking Down No-Hire Agreement

Fisher Phillips on

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

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

Maryland Prohibits Noncompetes for Low-Wage Employees

A new state law in Maryland now prohibits employers from requiring low-wage employees to enter into noncompete agreements. Maryland Senate Bill 328, which took effect on October 1, 2019, prohibits employers from obligating...more

Littler

Colorado Court Decides Issue of First Impression on Restrictive Covenants

Littler on

The Colorado Court of Appeals recently decided an issue of first impression regarding noncompetition and nonsolicitation agreements. The decision in 23 LTD v. Herman highlights an important consideration for Colorado...more

Littler

Second California Court Adopts Position that Employee Non-Solicitation Clauses are Invalid Restraints on Trade

Littler on

On January 11, 2019, a California federal district court issued a decision bolstering the argument that employee non-solicitation clauses are unenforceable under California law....more

Morrison & Foerster LLP

Are Employee Non-Solicitation Clauses Still Legal In California?

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The Fourth District Court of Appeals in San Diego on November 1, 2018, issued AMN Healthcare Inc. v. Aya Healthcare Services Inc., in which it called into question the continuing viability in California of employee...more

Davis Wright Tremaine LLP

California Court Limits Use of Employee Non-Solicitation Agreements

In California, any contract under which a person is prevented from engaging in his or her profession is, with limited exceptions, void under Section 16600 of the Business & Professions Code. Section 16600 has long been...more

Roetzel & Andress

The Humpty Dumpty Defense Does Not Work For Hospital In Union Organizing Campaign: The Importance Of Carefully Drafting A...

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“When I use a word,” Humpty Dumpty said, in a rather scornful tone, “It means just what I choose it to mean – neither more nor less.” “The question is,” said Alice, “whether you can make words mean so many different...more

Jackson Lewis P.C.

Wisconsin Supreme Court Applies Non-Compete Law To Invalidate Anti-Poaching Covenant

Jackson Lewis P.C. on

On January 19, 2018, a divided Wisconsin Supreme Court held that an employee non-solicitation covenant was overly broad and unenforceable under state law. In the decision, entitled The Manitowoc Company, Inc. v. Lanning, Case...more

Jackson Lewis P.C.

New Hampshire, Pennsylvania, Vermont May Restrict Use Of Non-Compete Agreements In Employment

Jackson Lewis P.C. on

Proposals to restrict the use of non-compete agreements in employment have been introduced in New Hampshire, Pennsylvania, and Vermont. This appears to be the continuation of a trend that started nearly a year ago. On...more

Butler Snow LLP

Tennessee Court of Appeals Finds that Former Employee Breached Non-Compete Agreement Through Actions of His Subordinates

Butler Snow LLP on

In November 2017, the Tennessee Court of Appeals upheld a Nashville trial court’s determination that a former employee violated his noncompete agreement by managing employees who solicited competing business in the restricted...more

Jackson Lewis P.C.

Georgia Court Of Appeals Confirms Non-Solicitation of Employees Covenant Need Not Have Geographic Or Material Contact Language

Jackson Lewis P.C. on

As previously noted in Jackson Lewis’ Non-Compete & Trade Secrets Report, Georgia adopted legislation governing restrictive covenant agreements entered into on or after May 11, 2011. This law, however, does not address...more

Jackson Lewis P.C.

Kansas Decision Highlights The Perils Of Overreach In Restrictive Covenant Agreements

Jackson Lewis P.C. on

In a recent decision examining Kansas non-compete law, the United States District Court for the District of Kansas partially granted a company’s motion to enjoin its former employee’s violations of the non-compete and...more

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