News & Analysis as of

Restrictive Covenants Employment Litigation Employees

Parker Poe Adams & Bernstein LLP

Fourth Circuit Says Use of Noncompetes Indicates Employment Instead of Contractor Relationship

In recent years, state courts have questioned whether independent contractors can be placed under enforceable post-engagement noncompetition agreements. ...more

CDF Labor Law LLP

A No-Go for Employees’ Anti-Trust Claims Based on High-End No-Hire Agreements

CDF Labor Law LLP on

Recently, the United States Court of Appeals for the Second Circuit upheld the dismissal of a class action against defendants Saks Inc., Gucci, Prada, Loro Piana, Brunello Cucinelli and other luxury good manufacturers....more

Sheppard Mullin Richter & Hampton LLP

New York Legislature Proposes New Bill Banning Non-Compete Agreements

The New York Legislature is set to make another attempt to ban non-competes for all but highly compensated individuals. At the end of the 2023 legislative session, the New York Legislature passed a bill that would have banned...more

Hendershot Cowart P.C.

Timeline: What Happens After Breaking a Non-Compete Agreement in Texas

Hendershot Cowart P.C. on

Responding to a Non-Compete Violation - When an employer discovers a potential non-compete violation, they generally react within 1-4 weeks, though this can be shorter if the violation poses an immediate competitive threat....more

Seyfarth Shaw LLP

Acting NLRB General Counsel Rescinds Biden-Era Policy Guidance on Non-Compete Agreements

Seyfarth Shaw LLP on

On February 14, 2025, NLRB Acting General Counsel William B. Cowan rescinded a number of active General Counsel Memoranda citing an increasing “backlog of cases [grown] to the point where it is no longer sustainable.” Among...more

Morgan Lewis

Washington Supreme Court Clarifies Limits on Employers’ Anti-Moonlighting Agreements

Morgan Lewis on

The Supreme Court for the State of Washington issued a decision in David v. Freedom Vans LLC expanding the state’s prohibition against anti-moonlighting covenants for low-wage workers. The court held that employers may not...more

Ballard Spahr LLP

Delaware Supreme Court Broadens Utility of Noncompete Enforcement Tool

Ballard Spahr LLP on

In a recent en banc decision, Delaware’s Supreme Court upheld a key tool available to employers to enforce forfeiture-for-competition provisions against former employees. Delaware’s Chancery Court has shown an increasing...more

Littler

Rescission of NLRB General Counsel Memos on Non-Compete Agreements Indicates Shift in Enforcement Priorities

Littler on

On February 14, 2025, National Labor Relations Board Acting General Counsel William Cowan rescinded several previously issued memos, including two related to restrictive covenants: (1) GC Memorandum 23-08, Non-Compete...more

Dinsmore & Shohl LLP

Significant Non-Compete Restrictions May Be Coming to the Buckeye State

Dinsmore & Shohl LLP on

Ohio may be the next state to place restrictions on non-competition provisions in employment agreements for employers, including healthcare providers. Ohio Senators Bill Blessing (R-Colerain Township) and Bill DeMora...more

Kohrman Jackson & Krantz LLP

Ohio Employers May See Non-Competes and Stay-or-Pay Provisions Prohibited with Senate Bill 11

Senator Louis Blessing, III, Republican, and William DeMora, Democrat have introduced Senate Bill 11 which seeks to ban employers from requiring their employees to adhere to non-competes and certain stay or pay provisions. ...more

Epstein Becker & Green

The Buckeye State to End Employer Noncompetes?: Ohio Introduces Bill That Would Ban Employers from Entering into Noncompetes

Epstein Becker & Green on

Consistent with our previous reporting that states would continue to address noncompete issues even after the apparent end of the FTC Noncompete Rule, Ohio has joined the growing list of jurisdictions seeking to restrict the...more

Proskauer - Trade Secrets

Seventh Circuit Decision Highlights Distinction Between Traditional Non-Compete and Forfeiture-for-Competition

A recent decision by the U.S. Court of Appeals for the Seventh Circuit allowed an employer to enforce a “forfeiture-for-competition” against a former plant manager. The Court explained that, under Delaware law, forfeiture-for...more

Morrison & Foerster LLP

Washington Supreme Court Indicates Agreements Prohibiting Employees from Working for Competitors During Employment May Violate...

On January 23, 2025, the Washington Supreme Court held that two Washington workers can argue that their former employer imposed unreasonable restrictions in violation of a state statute regulating non-compete agreements that...more

Foley & Lardner LLP

Complying With Recent Guidance From Delaware Courts Regarding Enforcement of Noncompetes

Foley & Lardner LLP on

In line with the national trend making noncompetes more difficult to enforce, a number of Delaware courts have recently refused to “blue pencil” overbroad noncompetition agreements and have stricken them in their entirety. As...more

Sheppard Mullin Richter & Hampton LLP

Indiana Appellate Court Rules Medical Company’s Non-Compete with Chief Operating Officer Overbroad and Unenforceable 

An Indiana appellate court recently declined to enforce an executive’s non-compete on the grounds that the covenant’s activity restriction was overbroad. In Med-1 Solutions, LLC v. Taylor (Opinion 24A-PL-450, November 25,...more

Troutman Pepper Locke

FTC Noncompete Rule Risks a Wave of State AG Actions

Troutman Pepper Locke on

On April 23, the FTC promulgated its final rule banning noncompetes nationwide. Originally published in Law360 - May 23, 2024....more

Seyfarth Shaw LLP

BREAKING: Federal Judge Rules FTC’s Non-Compete Ban to be Set Aside Nationwide

Seyfarth Shaw LLP on

This just in: Judge Ada Brown ruled yesterday on the parties’ dueling summary judgment motions – 10 days before her self-imposed deadline to do so – in Ryan LLC v. FTC. Judge Brown granted the plaintiffs’ motion for summary...more

Jenner & Block

NLRB Settles Noncompete Regulatory Action

Jenner & Block on

In May 2023, the General Counsel of the National Labor Relations Board (“NLRB”) published a memorandum stating that an employer who requires a nonmanagerial/nonsupervisory employee to sign a noncompete agreement violates...more

Perkins Coie

District of Arizona Evaluates Restrictive Covenants

Perkins Coie on

The U.S. District Court for the District of Arizona recently evaluated the reasonableness of two restrictive covenants—the nonsolicitation of customers and the nonsolicitation of employees—along with claims related to...more

A&O Shearman

New Rules Highlight the Need to Review Employee Forms and Policies

A&O Shearman on

For many companies, the use of “form” employee documents is an efficient practice that ensures consistent treatment. That said, reliance on forms can often breed complacency. In this new year, companies should consider a...more

Sheppard Mullin Richter & Hampton LLP

Necessity Is the Mother of Invention – But New York Law Says Employers Better Not Take the Credit

On September 15, 2023, New York Governor Kathy Hochul signed a law that made dramatic changes to the enforceability of invention assignment provisions in employment agreements and likely in related agreements including offer...more

Troutman Pepper Locke

California Broadens Restrictions on Noncompete Agreements, Imposes Civil Liability

Troutman Pepper Locke on

Effective January 1, 2024, California will impose civil liability for employers who (1) enter into a contract that includes a noncompete agreement, and (2) attempt to enforce a noncompete agreement — regardless of where and...more

Littler

Georgia Court of Appeals: Non-Solicitation-of-Employees Covenant Must Contain Express Geographic Limitation

Littler on

The Georgia Court of Appeals recently provided important clarification of the requirements for non-recruitment covenants under Georgia’s 2011 Restrictive Covenants Act. In North American Senior Benefits, LLC v. Wimmer, 2023...more

Skadden, Arps, Slate, Meagher & Flom LLP

Employment Flash - June 2023

New York, Minnesota and NLRB Act To Limit Noncompetes - New York Legislature Passes Bill To Ban Post-Employment Noncompetes - On June 20, 2023, the New York state Legislature passed a bill that bans post-employment...more

Faegre Drinker Biddle & Reath LLP

Top Noncompete Developments of 2022

2022 was a relatively quiet year in terms of noncompete developments. However, both state legislatures and courts continued to take steps to narrow the circumstances under which noncompetition and employee non-solicitation...more

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