News & Analysis as of

Non-Solicitation Agreements Unenforceable Contract Terms

Davidoff Hutcher & Citron LLP

Restrictive Covenants in Restaurant Ownership Agreements: Enforceability in New York

Restrictive covenants are critical in restaurant ownership agreements to protect business interests, prevent unfair competition, and safeguard proprietary information. However, in New York, courts scrutinize these clauses to...more

Parker Poe Adams & Bernstein LLP

New California Law Requires Notice to Employees About Void Noncompetes

Most employers know that California has for decades prevented enforcement of employee non-competition and customer non-solicitation agreements. Some companies with California operations modify their agreements with employees...more

Fisher Phillips

Georgia Employers Must Act Now as Recent Court Decision Potentially Invalidates Most Employee Non-Solicitation Covenants

Fisher Phillips on

The Georgia Court of Appeals just made it significantly more difficult for employers to enforce employee non-solicitation provisions, which might require you to take immediate action to protect your company’s interests in...more

Saiber LLC

CPAs Beware: Proposed Legislation Would Impact Enforceability of Non-Compete and Non-Solicit Agreements

Saiber LLC on

For CPAs, restrictive covenants — in the form of non-competition and non-solicitation agreements — are part of life. Most firms, and most CPAs, understand that these restrictive covenants are enforceable to varying degrees....more

Venable LLP

The Risks of Noncompetition Agreements for Remote Employees

Venable LLP on

More than two years into the pandemic, most employers are familiar with many of the challenges raised by engaging remote employees. However, one often overlooked issue is whether noncompetition agreements vetted for in-state...more

FordHarrison

Non-Compete News: Georgia Court Holds Non-compete and Non-solicit of Employee Provisions With Missing Territory Unenforceable and...

FordHarrison on

Earlier this year, in Steuer v. Tomaras, et al., Georgia’s Statewide Business Court again refused to modify certain restrictive covenants that were missing a territory. Dr. Steuer, a former partner of the defendant doctors,...more

Fisher Phillips

Lessons to be Learned: Federal Appeals Court Strikes Down Non-Compete Provision and Limits Non-Solicitation Provision

Fisher Phillips on

A federal appeals recently addressed two important questions in a critical restrictive covenant case, providing important guidance for employers drafting non-compete and non-solicitation provisions and underscoring how the...more

Littler

Ninth Circuit Indicates Restrictive Covenants in Collaborative Business-to-Business Agreements Can Escape Per Se Liability

Littler on

Few experts in the field of unfair competition law would disagree that the 2018 decision in AMN Healthcare, Inc. v. Aya Healthcare Services, Inc., was a game changer in California, overturning what was then approximately 30...more

Farrell Fritz, P.C.

The Importance of Understanding The Contractual Limits of Restrictive Covenants (Part II)

Farrell Fritz, P.C. on

In one of my first posts, entitled Restrictive Covenants: The Importance of Understanding Their Contractual Limits, I wrote about a First Department decision upholding a portion of Justice Andrea Masley’s Order enjoining a...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

Hogan Lovells

Client Alert: Virginia Court Invalidates Government Contractor’s Non-Competition and Non-Solicitation Agreement with Independent...

Hogan Lovells on

In January 2020, Judge John Tran of the Fairfax County Circuit Court in Virginia held unenforceable non-competition and non-solicitation provisions in a government contractor’s consulting agreements entered into with...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

Jaburg Wilk

Employment Non-Competition Covenants- What Law Applies and Why The Answer To That Question Is So Important

Jaburg Wilk on

Many Arizona employees are often subject to non-compete agreements, or “covenants,” in which the employee agrees in advance to not compete with his or her employer for some time after leaving or being terminated 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

White and Williams LLP

Signed, Sealed, Delivered, I’m (Not) Yours: How a Lapse in Record Keeping Can Lead to Non-Binding Contracts

White and Williams LLP on

Usually, once a contract is signed, sealed and delivered, it is a binding agreement between the parties. However, a recent Delaware case serves as a reminder that a murky path to a signed agreement and lack of good...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

K&L Gates LLP

Working Wise: Tips and Common Mistakes to Avoid for Employers in California

K&L Gates LLP on

In this episode of the Working Wise Podcast Series, K&L Gates Los Angeles Associate Saman Rejali provides an overview of tips and common mistakes to avoid for employers doing business in California....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

FordHarrison

Non-Compete News: In Georgia, Whether It Is a Non-Compete or a Non-Solicit Makes All the Difference

FordHarrison on

Georgia’s Restrictive Covenants Act (the “RCA”) became effective in May 2011, but it took nearly six years before a court published a decision interpreting the statute in the context of a non-competition provision....more

Womble Bond Dickinson

New Developments In Non-Competes

Womble Bond Dickinson on

...In an industry so focused on the development and promotion of personalities and distinguishing its information and entertainment from the competition, talent non-competition agreements can be critical. But, as the saying...more

Payne & Fears

Keys to the Kingdom: How Confidentiality Agreements Are Key to Keeping Business Information Secret

Payne & Fears on

In today’s business environment, greater employee mobility and technological advances underscore the need to protect a company’s confidential information and trade secrets. Stories of employees departing with confidential...more

Proskauer - Law and the Workplace

Nevada Codifies Amendments For Non-Competes and Other Forms of Restrictive Covenants – Adopts “Blue Pencil” Standard, Imposes...

Nevada’s Assembly Bill 276, which became effective on June 3, 2017 (the “NV Law”), articulates new rules and requirements for employee restrictive covenants, some of which fundamentally alter the State’s prior practices. The...more

Foley & Lardner LLP

Employer Handbook Policies Violate the National Labor Relations Act

Foley & Lardner LLP on

As we recently noted, the National Labor Relations Board (NLRB) is laser-like focused on scrutinizing employer personnel policies. In yet another example of this ongoing campaign, a recent administrative law judge (ALJ)...more

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

Fifth Circuit Refuses to Apply Texas Choice of Law to Noncompete Agreement

Companies conducting business in more than one state frequently seek to select the state law that will govern the interpretation and enforcement of their contracts by including a choice of law provision in their agreements....more

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