This GT Alert discusses two bills, New York Senate Bill S4641 and New Jersey Senate Bill S1688, which propose changes to the landscape of restrictive covenants in these states.
Continue Reading New Jersey and New York Lawmakers Propose New Limits on Restrictive Covenants
On July 23, 2024, the Eastern District of Pennsylvania in ATS Tree Services, LLC v. Federal Trade Commission denied the plaintiff’s motion to enjoin and stay the FTC’s final rule
Continue Reading Pennsylvania Federal Court Declines to Enjoin FTC’s Noncompete Ban
In New York state, both houses of the Legislature have passed S.3100A/A.1278-B, which would add a new section 191-d to the Labor Law prohibiting “non-compete agreements and certain restrictive covenants.”
Continue Reading NY Legislature Passes Legislation Banning Employer Use of Noncompete Agreements; NYC, FTC Actions Pending; NLRB General Counsel Memorandum
On Sept. 9, 2021, President Biden issued his Executive Order on Ensuring Adequate COVID Safety Protocols for Federal Contractors (EO), mandating vaccines for all federal employees and covered federal contractor
Continue Reading Considerations for Federal Contractors on President Biden’s EO, Effective Oct. 15, Ensuring Adequate COVID-19 Safety Protocols
The enforceability of restrictive covenants, particularly non-compete agreements, can be very difficult for employers to navigate, especially for companies in their “start-up” phase. Technology companies in particular face challenges in
Continue Reading A Non-Compete Law Roadmap for Tech Start-Ups in Key Jurisdictions
The Massachusetts Noncompetition Agreement Act, M.G.L. c. 149, § 24L, has been the law of the Commonwealth for almost four months. The statute only applies to agreements entered into between
Continue Reading Impact of New Massachusetts Noncompete Law on Emerging Tech Companies
Many employers and attorneys assume that covenants not to compete found in employment agreements are not enforceable against California residents absent narrow exceptions, and that courts would reject any attempt
Continue Reading California Employee Can Agree to Non-Compete Clause When Represented by Counsel
The title should not be read to suggest some tectonic shift in the moods and values of the California Legislature or the Governor; far from it. However, every once in
Continue Reading Not Everything the California Legislature Enacts is Bad for All Employers All the Time
As companies grow and expand into multiple U.S. states, particularly in our increasingly knowledge and relationship-based economy, determining the applicable law for companywide restrictive covenants can be puzzling. Determining which
Continue Reading Fifth Circuit Clarifies and Complicates Choice of Law Analysis of Interstate Restrictive Covenants
Drafting an effective employment agreement or release has become a challenging endeavor for a new reason. In Golden v. California Emergency Physicians Medical Group, the U.S. Court of Appeals for the Ninth Circuit added another source of concern to those employers who deploy “no re-hire” provisions in releases. Following Golden, a fact-intensive inquiry may be required into the particular provision to determine if it constitutes “a restraint of a substantial character,” — here, whether or not there was a restraint of a substantial character of Dr. Golden’s medical practice. And, given the Ninth Circuit’s reading of California law, Golden may also have implications well beyond the employment context, possibly extending to certain commercial contracts as well, to the extent they can be said to restrain anyone from engaging in a lawful profession, trade or business.
Continue Reading Ninth Circuit Broadens California Rule Against Non-Competes