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Unenforceable Contract Terms Employment Contract

Blake, Cassels & Graydon LLP

Cinq victoires récentes pour les employeurs : le vent tournerait-il en leur faveur?

Contrairement à la tendance axée sur les employés qui se dégage de la jurisprudence pour ce qui est de l’interprétation des contrats d’emploi et des ententes de rémunération, les tribunaux canadiens ont récemment rendu un...more

Mintz

[Podcast] Mintz On Air: Practical Policies – Disparage Me Not

Mintz on

Member Jen Rubin is joined by Member Natalie Groot for a practical conversation on non-disparagement clauses. This episode is part of a series of conversations designed to help employers navigate workplace changes and...more

Mintz - Employment Viewpoints

Mintz On Air: Practical Policies – Disparage Me Not

Member Jen Rubin is joined by Member Natalie Groot for a practical conversation on non-disparagement clauses. This episode is part of a series of conversations designed to help employers navigate workplace changes and...more

Morris James LLP

Court of Chancery Finds Employee’s Restrictive Covenants Unenforceable for Lack of Consideration

Morris James LLP on

N. Am. Fire Ultimate Holdings, LP v. Doorly, C.A. No. 2024-0023-KSJM (Del. Ch. Mar. 7, 2025) - A contract requires consideration to be enforceable. In this case, the Court of Chancery held restrictive covenants were...more

Troutman Pepper Locke

Colorado AG Sues PetSmart Over TRAP Contracts

Troutman Pepper Locke on

Colorado Attorney General (AG) Phil Weiser has sued PetSmart LLC, alleging that its use of Training Repayment Agreement Provisions (TRAPs) violates state consumer protection and labor laws. The lawsuit reflects a broader...more

Fisher Phillips

Michigan Standard Employment Forms May No Longer Hold Up in Court: 2 Steps Employers Should Take Now

Fisher Phillips on

The Michigan Supreme Court just ruled that many boilerplate forms employees sign on day one – sometimes known as adhesive employment agreements – are no longer automatically enforceable if they shorten the timeframe for...more

Troutman Pepper Locke

Restrictive Covenants Unenforceable Where Consideration Forfeited

Troutman Pepper Locke on

In North American Fire Ultimate Holdings, LP v. Alan Doorly, the Delaware Court of Chancery held that the restrictive covenants included in an incentive unit grant agreement were unenforceable when the units received by the...more

Jenner & Block

Delaware Supreme Court Reaffirms Reluctance to Blue-Pencil Overbroad Restrictive Covenants in Sunder v. Jackson

Jenner & Block on

The Delaware Supreme Court’s decision in Sunder Energy, LLV v. Jackson, No. 455, 2023, 2024 Del. LEXIS 407 (December 10, 2024) reaffirmed the courts’ limited willingness to modify or “blue-pencil” overbroad restrictive...more

Carlton Fields

Eleventh Circuit Holds Arbitration Agreement Unenforceable Against Spouse of Former Employee

Carlton Fields on

In Lubin v. Starbucks Corp., the Eleventh Circuit Court of Appeals considered defendant Starbucks’ appeal of an order denying its motion to compel arbitration of the plaintiffs’ lawsuit alleging that Starbucks sent deficient...more

Stikeman Elliott LLP

Hungry for Consideration in Employment Agreements: Are Peppercorns Off the Menu for Employers?

Stikeman Elliott LLP on

In the recent decision of Sui v HungryPanda Tech Ltd., 2024 BCSC 1856 (“HungryPanda”), the Supreme Court of British Columbia invalidated a termination provision in an employment agreement by finding the employer had failed to...more

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

Ontario Court Reaffirms Importance of Clear and Compliant Language in Employment Agreements

In December 2024, the Court of Appeal for Ontario released its highly anticipated decision in Dufault v. Ignace (Township). The three-judge panel determined that the “for cause” termination clause contained in the employee’s...more

Littler

Ontario, Canada Court Finds Termination Provisions Unenforceable and Awards Employee Punitive Damages

Littler on

Wilds v. 1959612 Ontario Inc., 2024 ONSC 3452, involves a wrongful dismissal action in which the employee brought a motion for summary judgment. The court found the termination provisions in her employment agreement were...more

WilmerHale

Beating the Odds: First Circuit Doubles Down on Massachusetts Decision Enforcing Noncompete Against Sports Betting Executive Newly...

WilmerHale on

Against a growing trend of legislation and broader efforts seeking to limit or eliminate post-employment noncompetition restrictions, recent Massachusetts and First Circuit decisions in a dispute between DraftKings and one of...more

Morrison & Foerster LLP

Kodiak Two Years Later: Is Delaware’s Blue Pencil Turning Red for Non-Competes?

October 6, 2024 marks the two-year anniversary of Kodiak Building Partners, LLC v. Adams—the case in which the Delaware Chancery Court refused to enforce a sale-of-business non-compete against an executive who received $1...more

Tucker Arensberg, P.C.

An Update on the Uncertain Future of the FTC’s Non-Compete Rule, Plus Pennsylvania Enacts New Non-Compete Law for Healthcare...

Tucker Arensberg, P.C. on

Since it was first published in April, the fate of the Federal Trade Commission’s (FTC) final non-compete rule has been, to put it mildly, less than certain. Now, about a month before the rule is scheduled to take effect, the...more

Littler

Louisiana Becomes Latest State to Prohibit Nondisclosure Clauses Related to #MeToo Claims

Littler on

Under a new Louisiana law enacted on June 25, 2024, nondisclosure clauses required by an employer and agreed to prior to a hostile work environment dispute or sexual harassment dispute will be unenforceable. Louisiana joins...more

Lathrop GPM

FTC Approves Final Rule, Would Ban Most Employment Non-compete Agreements

Lathrop GPM on

The Federal Trade Commission (“FTC”) voted and approved the issuance of a final rule, the Non-Compete Clause Rule, that, if it goes into effect, will make future employment non-compete agreements unenforceable and will...more

Tucker Arensberg, P.C.

FTC Votes to Ban Non-Compete Agreements

Tucker Arensberg, P.C. on

In a Special Open Commission Meeting, the Federal Trade Commission voted to approve the final rule to ban non-compete agreements for for-profit businesses, the effective date of such ban being in 120-days....more

Epstein Becker & Green

Red Pencil, Blue Pencil, or Something In Between? Ohio Court of Appeals Declines to Modify Overbroad Non-Competition Agreement

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Ohio has long recognized the enforceability of non-compete agreements. Broadly speaking, a court can do one of three things with an unenforceable non-compete agreement: (1) the court can apply the “red pencil” doctrine and...more

Littler

Ontario, Canada Court Finds Termination Clauses in Fixed-Term Employment Agreement Unenforceable

Littler on

In Dufault v. The Corporation of the Township of Ignace, 2024 ONSC 1029, the Ontario Superior Court of Justice held that the termination provisions of a fixed-term employment contract were illegal and unenforceable because...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

Holland & Knight LLP

Florida Legislature Proposes Ban on Physician Noncompete Agreements

Holland & Knight LLP on

The Florida Legislature is currently considering two bills that, if enacted in their current form, would significantly reduce (and potentially eliminate altogether) the enforceability of noncompete agreements against...more

BakerHostetler

At Long Last, California District Court Permanently Enjoins Enforcement of AB 51

BakerHostetler on

There are times when one would rather not be proven right. Nearly four years ago, a California district court invalidated AB 51, which sought to prohibit mandatory arbitration by, among other things, calling for criminal...more

Husch Blackwell LLP

Wisconsin Legislators Propose Near-Total Ban on Noncompete Agreements

Husch Blackwell LLP on

Key points- • Democrats in the Wisconsin Legislature introduced a bill which would ban most noncompete agreements. • The bill would still allow employers to use nondisclosure agreements and restrict use of customer lists...more

Holland & Knight LLP

California's New Nationwide Focus on Noncompetition Agreements

Holland & Knight LLP on

For decades, California has taken arguably the most pro-employee-mobility position on noncompetition and non-solicitation agreements in the country – generally, post-employment noncompetition and non-solicitation agreements...more

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