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
The FTC’s Sweeping Proposal to Ban Non-Competes
The Bottom Line In the three weeks since the proposed rule was released, the FTC has received over 5,600 comments, and many more are expected from interested individuals, companies, industry groups and trade associations.Until the final rule, if any, is implemented, companies should continue to 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
New Federal Law Limits Enforceability of Predispute Nondisclosure and Nondisparagement Clauses Related to Sexual Harassment
Bottom Line The federal Speak Out Act limits the enforceability of predispute nondisclosure and nondisparagement provisions related to incidents of sexual harassment and sexual assault.Employers should review and, if necessary, revise standard employment and restrictive covenant agreements to 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
California Employee Non-Solicitation Provisions Face Unpredictability
The Bottom Line The California Court of Appeal rejected an employee non-solicitation provision for recruiters, and one federal court in California has taken a broad reading of that decision and concluded that all employee non-solicitation provisions are invalid. This development serves as a Continue Reading
Enforcing Restrictive Covenants Against Employees Discharged Without Cause
The Bottom Line A bright-line rule that an employer may not enforce restrictive covenants against an employee terminated without cause appears to be re-emerging in New York. But there are potential strategies for employers to secure enforceable post-employment restrictions against an involuntarily Continue Reading