The Bottom Line Federal district courts in the Second circuit will not presume that a company will suffer irreparable harm for a restrictive covenant violation. Parties should not rely on contractual stipulations alone to establish irreparable harm.A party seeking a court injunction for the Continue Reading
Jury Awards Six-Figure Damages to Hermès in First Major NFT Decision
The Bottom Line Brands should monitor whether and how their trademarks are being used in new technologies and know that such use is still subject to traditional principals of trademark law.Creators should be aware of the limits of First Amendment protection, particularly when dealing with Continue Reading
For Compete’s Sake! Delaware Court Declines to Enforce Sale-of-Business Restrictive Covenants
The Bottom Line Courts around the country subject non-competition agreements and other restrictive covenants to increasingly strict scrutiny in employment contracts.Courts applying Delaware law may also limit enforcement of restrictive covenants executed in the sale-of-business context to the Continue Reading
U.S. Department of Labor Proposes New Rule on Independent Contractor Status
The Bottom Line The U.S. Department of Labor has proposed a new rule addressing the distinction between employees and independent contractors under the Fair Labor Standards Act.If adopted, it will replace the rule announced by the DOL in January 2021 and will be more focused on the “totality of Continue Reading
How to Handle ADA Website Accessibility Claims
The Bottom Line When faced with an ADA website accessibility claim, there are defenses that can be raised, either with the court or as part of settlement negotiations.Companies should carefully review any such claim, particularly the allegations concerning whether the plaintiff visited the Continue Reading
Washington, D.C. Rolls Back Proposed Ban on Non-Compete Agreements
The Bottom Line Washington, D.C.’s amended law banning non-compete agreements contains an exception for highly compensated employees and no longer outright bans anti-moonlighting provisions in all instances. Employers should be mindful of the total annual compensation awarded to employees in Continue Reading
New York City’s “Guaranty Law” Remains Legal — For Now
The Bottom Line The Guaranty Law, enacted on May 26, 2020, provides strong protection to personal guarantors of commercial leases in New York City.While subject to an ongoing legal challenge, the Guaranty Law currently prevents certain commercial landlords from recouping unpaid rental arrears Continue Reading
Colorado Limits Employer Use of Restrictive Covenants
The Bottom Line The Act impacts restrictive covenants entered (or renewed) on or after Aug. 10.The Act significantly alters the landscape for restrictive covenants in Colorado.Employers that have employees who live or work in Colorado should consult with legal counsel and carefully review their Continue Reading
You Can Believe It’s Not Butter: NY Judges Dismiss “Butter” Class Actions
The Bottom Line Courts will look to product packaging and advertising as a whole when evaluating whether those materials can support a false advertising or deceptive trade practices claim, unless the package or advertisement includes a prominent statement or description that is unambiguously Continue Reading
Court Enforces Arbitration Clause in In-Home Services App Agreement
The Bottom Line The First Circuit’s Emmanuel decision reaffirms yet again the importance of well-crafted terms and conditions for companies interacting with consumers over the Internet and via mobile apps.Terms must be presented in a clear and conspicuous manner to give users reasonable notice of Continue Reading