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
Impact of New Massachusetts Noncompete Law on Emerging Tech Companies
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
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California Employee Can Agree to Non-Compete Clause When Represented by Counsel
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
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Not Everything the California Legislature Enacts is Bad for All Employers All the Time
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
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Fifth Circuit Clarifies and Complicates Choice of Law Analysis of Interstate Restrictive Covenants
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
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Ninth Circuit Broadens California Rule Against Non-Competes
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.
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Proposed Restrictive Covenant Law Threatens to Handcuff Employers
Prepared by: Brian Confino
Most businesses possess confidential information or trade secrets that need to be safe-guarded, or intellectual property, equipment, or processes that set them apart from their competition.
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NLRB Continues To Review General Employment Provisions
The National Labor Relations Board (“NLRB”) continued its recent trend of reviewing employment provisions often contained in employee handbooks or employment agreements. On December 3, 2012, the NLRB’s Division of
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Are Restrictive Covenants Enforceable in California? It Depends.
In California, it is well established that non-compete provisions are unenforceable, subject to certain statutory exceptions. But what about non-compete provisions that are ambiguous as to their protection of confidential information or trade secrets? Recently, when faced with such a provision, one California federal court narrowly construed the provision to find it enforceable.
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Supreme Court Vacates California Ruling on Arbitration Agreements
Does an employee have the right to proceed before the California Labor Commission after signing an agreement to arbitrate all claims? That is a question the California Supreme Court will
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