News & Analysis as of

Non-Solicitation Agreements Employment Contract Appeals

Patterson Belknap Webb & Tyler LLP

Second Circuit Holds No Irreparable Harm from Hospital’s Poach of Care Providers, Despite Non-Solicitation Clause

Last month, the Second Circuit rejected the effort of an association of anesthesiology service providers to enjoin a Syracuse-based hospital from recruiting and hiring local anesthesiology providers. The association, American...more

McDermott Will & Emery

Fifth Circuit Rejects Recruiter’s Trade Secret Misappropriation and Contract Defenses

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The US Court of Appeals for the Fifth Circuit affirmed a district court’s decision finding trade secret misappropriation and breach of contract based on a recruiter’s improper use of confidential client information. Counsel...more

Adams & Reese

How Do Employers Navigate Evolving Landscape of Restrictive Covenants Following NLRB's McLaren Macomb Decision?

Adams & Reese on

The NLRB issued its order and decision last year in McLaren Macomb, holding that employers violate the NLRA by enforcing — or even offering — severance agreements containing overly broad confidentiality and non-disparagement...more

Proskauer Rose LLP

Future Not Looking Bright For California Employee Nonsolicits

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On Jan. 1, new legislation aimed at curbing the use of unenforceable noncompete agreements took effect in California. The new laws, which impose potentially harsh consequences on employers for requiring employees to sign...more

Seward & Kissel LLP

Employment Litigation Roundup: October 2023

Seward & Kissel LLP on

October 2023: Public information can be a trade secret; Litigants get creative to contest non-competes; NJ addresses the enforceability of non-disparagements; Law firm DEI programs face legal challenges - Compilation of...more

Proskauer - California Employment Law

California Court of Appeal Publishes Opinion Upholding Customer Non-Solicitation Covenant

Despite California’s general hostility towards post-termination restrictive covenants, the California Court of Appeal, in a recently published opinion, Blue Mountain Enters., LLC v. Owen, 74 Cal.App.5th 537 (1st Dist. Jan....more

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

Massachusetts High Court Clarifies Standards for Judicial Review of Anti-Raiding Provisions in Restrictive Covenants

The Massachusetts Supreme Judicial Court (SJC), the Commonwealth’s highest court, recently clarified the standards applicable to analyzing nonsolicitation and anti-raid restrictive covenants following the sale of a business -...more

Parker Poe Adams & Bernstein LLP

North Carolina Courts Defeat Another ‘Overbroad' Noncompete

In recent years, North Carolina courts have become increasingly resistant to enforcing noncompetition and non-solicitation restrictions they view as insufficiently narrowed to the specific competitive threat presented by the...more

Hahn Loeser & Parks LLP

AMN Healthcare’s impact on the enforceability of non-solicitation provisions in California raises two new unanswered questions

California Employee mobility and the right to compete are sacrosanct in California, and have been since its Legislature enacted section 16600 of the California Business and Professions Code, which voids “every contract by...more

Parker Poe Adams & Bernstein LLP

N.C. Court of Appeals Rejects Customer Non-Solicitation Restriction

When we talk with clients about post-employment “noncompete” agreements, this term actually encompasses a number of different restrictions. In addition to provisions that restrict the employee from working for a competitor...more

Dorsey & Whitney LLP

Colorado Courts Further Restrict Use of Restrictive Covenants

Dorsey & Whitney LLP on

Refusing to enforce a non-solicitation provision that violated public policy, the Colorado Court of Appeals held that parties to a non-solicitation agreement cannot contractually obligate the court to “blue pencil” the...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

Fisher Phillips

Contractual Employee Non-solicitation Provisions Under Attack: Employer Loses Battle in Case Involving Unique Facts

Fisher Phillips on

California’s prohibition against contracts that restrain a person’s ability to engage in a lawful business, profession, or trade is well-established and well-known. Ten years ago, in Edwards v. Arthur Andersen LLP (2008) 44...more

Payne & Fears

Key California Employment Law Cases: November 2018

Payne & Fears on

This month’s key employment law cases address nonsolicitation provisions and arbitration agreements. AMN Healthcare, Inc. v. Aya Healthcare Servs., Inc., 28 Cal. App. 5th 923, 239 Cal. Rptr. 3d 577 (2018) Summary:...more

FordHarrison

Non-Compete News: Is a Non-Solicitation of Employees Provision Enforceable in California?

FordHarrison on

Last month, California’s Fourth District Court of Appeal issued AMN Healthcare, Inc. v. Aya Healthcare Servs., Inc., 28 Cal. App. 5th 923 (Cal. Ct. App. 2018), a decision calling into question the validity of non-solicitation...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

McAfee & Taft

Appeals court continues narrow interpretation of Oklahoma’s non-solicitation statute

McAfee & Taft on

Dealing with departing employees can be tricky. That’s why many companies require certain employees — particularly those with access to confidential or proprietary company information or customers — to sign written agreements...more

Troutman Pepper Locke

LinkedIn Activity May Violate Non-Solicitation Agreements

Troutman Pepper Locke on

Q: A former employee has invited some of her former co-workers and clients to connect on LinkedIn. Is this a violation of her non-solicitation agreement with our company? ...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

FordHarrison

Non-Compete News: Georgia Court of Appeals Confirms Lack of Geographic or Material Contact Limitation Does Not Invalidate...

FordHarrison on

Georgia’s recent Restrictive Covenant Act, enacted in 2011, does not directly address non-solicitation of employees a/k/a non-recruitment covenants, thereby leaving such provisions subject to the principles developed by...more

Seyfarth Shaw LLP

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

Seyfarth Shaw LLP on

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

Foley & Lardner LLP

Wisconsin Court Strikes Clause Restricting Solicitation of Employees

Foley & Lardner LLP on

An engineer’s employment contract provision imposing a post-termination restriction against soliciting former co-workers to quit or to accept employment with a competitor, supplier, or customer is an unenforceable restraint...more

Seyfarth Shaw LLP

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

Seyfarth Shaw LLP on

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

Burr & Forman

Is a Licensed Securities Dealer a “Professional” Under Alabama Law Prohibiting Enforcement of Nonsolicitation Agreements Against...

Burr & Forman on

The Alabama Court of Civil Appeals released a slip opinion on May 16, 2014 addressing enforcement of a nonsolicitation agreement against a licensed securities broker. See G.L.S. & Associates, Inc., and G.L. Smith &...more

Burr & Forman

Is A Licensed Securities Dealer A “Professional” Under Alabama Law Prohibiting Enforcement Of Nonsolicitation Agreements Against...

Burr & Forman on

The Alabama Court of Civil Appeals released a slip opinion on May 16, 2014 addressing enforcement of a nonsolicitation agreement against a licensed securities broker. See G.L.S. & Associates, Inc., and G.L. Smith &...more

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