The Bottom Line We have previously issued alerts concerning the Federal Trade Commission’s (FTC) rule banning most employee and independent contractor non-competes (the Rule) (May 6, 2024, January 26, 2023) and come to you now with a major update. On August 20, 2024, the federal court in Continue Reading
California Pushes the Boundaries of Its Ability To Limit Employer Use of Restrictive Covenants Agreements
The Bottom Line California already has among the strictest limitations in the United States on the use of employee restrictive covenants agreements. Specifically, California Business and Professions Code Section 16600 voids “every contract by which anyone is restrained from engaging in a Continue Reading
What’s the Harm? Second Circuit Requires Proof of Irreparable Harm to Enjoin Restrictive Covenant Violations
The Bottom Line When companies seek a court injunction for a restrictive covenant violation, they often focus on the covenant’s enforceability. They do this by arguing that the non-compete and customer non-solicitation covenants protect legitimate business interests — and is narrowly tailored Continue Reading
For Compete’s Sake! Delaware Court Declines to Enforce Sale-of-Business Restrictive Covenants
The Bottom Line “Courts disfavor restrictive covenants.” This statement has become axiomatic in employment law, and it has never been truer. In the past several years, judges in various jurisdictions have cast an increasingly critical eye on agreements that purport to restrict employees’ Continue Reading