Tag Archives: Non-competes

D.C. Mayor Signs Bill to Ban Non-Competes

By Clifford R. Atlas, Erik J. Winton and Jonathan L. Crook on Posted in: District of Columbia, Non-Compete Reform, Non-Competes
The District of Columbia appears poised to join the growing number of nearby states regulating and limiting restrictive covenant agreements in the employment context. Unanimously passed by the D.C. City Council on December 15, 2020 and signed by Mayor Muriel Bowser on January 11, 2021, the “The Ban on Non-Compete Agreements Amendment Act of 2020” … Continue Reading

Virginia Attempts, Maryland Succeeds, in Limiting Non-Competes For Low-Wage Employees

By Donald E. English, Jr., Judah L. Rosenblatt and Colin A. Thakkar on Posted in: Legislation, Low-Wage Employees, Low-Wage Workers, Maryland, Non-Compete Reform, Non-Competes, Virginia
In numerous states throughout the country, legislatures are moving to limit the use and enforcement of non-compete and other restrictive covenant agreements. Two such states, Maryland and Virginia, are seeking to curtail such agreements with regard to low-wage employees. Virginia Senate Bill 1387 On January 17, 2019, the Virginia Senate introduced SB 1387, which would … Continue Reading

Washington Governor Signs Non-Compete Law

By Sherry L. Talton, Peter H. Nohle, Meredith A. Smith and Colin A. Thakkar on Posted in: Legislation, Moonlighting, No-Poaching Agreements, Non-Compete, Non-Compete Reform, Non-Competes, Washington
On May 8, 2019, Washington Governor Jay Inslee signed into law HB 1450, described as “AN ACT Relating to restraints, including noncompetition covenants, on persons engaging in lawful professions, trades, or businesses[.]”  While the Act does not take effect until January 1, 2020, its restrictions apply retroactively to existing agreements signed before that date. Our article … Continue Reading

Utah Amends Three-Year-Old Non-Compete Law For Second Time In Two Years

By Conrad S. Kee, Clifford R. Atlas, Erik J. Winton and Colin A. Thakkar on Posted in: Legislation, Non-Competes, Utah
After enacting its non-compete law on April 7, 2016, Utah has twice amended the law to address additional restrictions on non-competes in the broadcasting industry. Governor Gary Herbert signed the second of those amended bills on March 22, 2019. The Original Non-Compete Law Utah’s original non-compete law, which we covered in an article dated April 7, 2016, … Continue Reading

U.S. Senators Seek Formal Investigation Of Non-Compete Use And Impact

By Clifford R. Atlas, Erik J. Winton and Colin A. Thakkar on Posted in: Federal Jurisdiction, GAO Investigation, Legislation, Non-Compete Reform, Non-Competes, Senate
Earlier this month, a group of six United States Senators made a joint request for the Government Accountability Office (GAO) to investigate the impact of non-compete agreements on workers and the U.S. economy as a whole. This action suggests that the federal non-compete reform effort is not going away. Recent Legislative Efforts On February 18, 2019, we … Continue Reading

California Non-Compete Law Renders Surgeon Settlement Agreement Unenforceable

By Joel P. Kelly, David T. Wiley and Colin A. Thakkar on Posted in: California, Non-Compete, Settlement Agreements
Answering a question left from a previous appeal in the same case, a divided panel of the U.S. Court of Appeals for the Ninth Circuit has concluded that a settlement agreement provision between a physician and his former employer, the California Emergency Physicians Medical Group (“CEP”), constituted a “restraint of a substantial character” on the … Continue Reading

Clear as Mud: Illinois Courts Continue to Grapple With The “Adequacy” Of Consideration for Non-Compete Agreements

By Colin A. Thakkar and Jackson Lewis P.C. on Posted in: Case Law update, Consideration, Non-Compete, Unfair Competition
It is axiomatic that a contract requires consideration to be binding. Ordinarily, courts only inquire into the existence, but not the “adequacy,” of consideration.  Illinois courts, however, also scrutinize the adequacy of consideration when it comes to determining whether restrictive covenant agreements qualify as an enforceable contract.  Absent adequate consideration for the restrictive covenant, there … Continue Reading

Continued Employment Isn’t Always Sufficient – Minnesota Requires Additional Consideration For Non-Compete With Current Employee

By Colin A. Thakkar and Jackson Lewis P.C. on Posted in: Consideration, Injunctions, Non-Compete, Unfair Competition
The Minnesota federal district court recently refused to enforce a non-compete agreement, in part, because the employer failed to establish that the agreement was supported by valuable consideration.  The decision, issued on October 6, 2017 in Mid-America Business Systems, v. Sanderson et. al., Case No. 17-3876, serves as an important reminder that, in Minnesota, there … Continue Reading

Referral Sources Can Be A Protectable Interest Under Florida Law

By Colin A. Thakkar on Posted in: Case Law update, Non-Compete, Non-Solicitation, Unfair Competition
In Florida, non-competition and other restrictive covenant agreements are enforceable to the extent they are tailored to protect a legitimate business interest. On September 14, 2017, the Florida Supreme Court held that a company’s relationships with business referral sources may constitute a protectable business interest – White v. Mederi Caretenders Visiting Services of Southeast Fla., … Continue Reading

Kansas Decision Highlights The Perils Of Overreach In Restrictive Covenant Agreements

By Colin A. Thakkar on Posted in: Blue Penciling, Injunctions, Non-Compete, Non-Solicitation, Unfair Competition
In a recent decision examining Kansas non-compete law, the United States District Court for the District of Kansas partially granted a company’s motion to enjoin its former employee’s violations of the non-compete and customer non-solicitation provisions of his employment agreement. The decision, in the matter of Servi Tech, Inc. v. Olson, highlights a number of key … Continue Reading

Nevada’s All-New Non-Compete Statute

By Clifford R. Atlas on Posted in: Legislation, Non-Compete
Once again, Nevada has re-written the landscape the law regarding enforcement of post-employment non-competition agreements.  Please see the article posted on our website, written by Elayna J. Youchah and Joshua A. Sliker of our Las Vegas office.  They analyze Assembly Bill 276, amending Chapter 613 of the Nevada Revised Statutes, signed into law by Governor Brian … Continue Reading

Nebraska Court Enforces Forum Selection Clause

By Kenneth M. Wentz on Posted in: Case Law update, Non-Compete
Nebraska’s legal history on the enforceability of non-compete agreements is usually a surprise for employers who view Nebraska as pro-business.  Nebraska courts routinely invalidate employee non-compete agreements that venture beyond restricting the employee from doing business with and soliciting customers with whom that employee did business and had personal contact. If there is a non-compete component … Continue Reading

Texas Pre-Suit Discovery – Obligations Under Unusual Procedure Clarified

By A. Robert Fischer and Jackson Lewis P.C. on Posted in: About This Theme, Discovery, Non-Compete, Trade Secrets
Although most employers are very familiar with the usual discovery process of litigation, they may not be as familiar with the Texas Rules of Civil Procedure’s Rule 202, which concerns pre-suit depositions. Rule 202 can be used, for example, by an employer who wants to learn more about a former employee’s activities before commencing a … Continue Reading

What Does it Mean to “Modify” an Unenforceable Non-Competition Covenant Under Georgia’s Restrictive Covenants Act?

By Lauren F. Gordon on Posted in: Blue Penciling, Non-Compete
               Although Georgia’s Restrictive Covenants Act has been on the books since the spring of 2011, no judge has decided the exact scope of Georgia courts’ blue-penciling abilities – until now.  In a case of first impression, Judge Thrash of the United States District Court for the Northern District of Georgia, in LifeBrite Laboratories, LLC … Continue Reading

Selective Enforcement Not A Viable Defense to Non-Competition Agreements Under Ohio Law

By Vincent J. Tersigni and Jackson Lewis P.C. on Posted in: Case Law update, Non-Compete, Non-Solicitation
Employers sometimes worry whether seeking to enforce their non-competes in some circumstances but not others might preclude enforcement altogether in the future.  Not so, says one court.  Applying Ohio law, the United States District Court for the Western District of Tennessee, in GCA Services v. ParCou, held in a discovery ruling that information regarding an … Continue Reading

White House Continues Attack on Non-Compete Agreements

By Clifford R. Atlas, David M. Walsh and Erik J. Winton on Posted in: Non-Compete, Trade Secrets
The assault on non-compete agreements has continued in a significant way, as outlined in our web article, White House Continues Attack on Non-Compete Agreements.  The latest White House document, coupled with prior reports from the White House and Treasury Department, as well as actions initiated by the Attorney General of New York and the Attorney … Continue Reading

Non-Solicitation Agreement Enforced in Wisconsin

By Clifford R. Atlas and Sharon Mollman Elliott on Posted in: Injunctions, Non-Compete, Non-Solicitation
There are so many stories about restrictive covenants being unenforceable in Wisconsin that it is refreshing to see a case where a restrictive covenant is enforced – especially at the preliminary injunction stage.   This week, the U.S. District Court for the Eastern District of Wisconsin granted a preliminary injunction in favor of BMO Harris Bank, … Continue Reading

Illinois Statute Bars Non-Competes For Low-Wage Workers

By Clifford R. Atlas on Posted in: Non-Compete
Illinois has a new non-compete statute that bans the use of non-compete agreements with “low-wage” employees. Peter Bulmer in our Chicago office has written this article on the Jackson Lewis website analyzing the new law, which takes effect January 1, 2017, and explaining the context which led to its enactment:  Illinois Freedom to Work Act: One … Continue Reading

Joint B-School/Law School Study Sheds Empirical Light on Use of Non-Competes in CEO Contracts

By on Posted in: Non-Compete
A recent study by three business and law school professors analyzed a random sample of 1,000 CEO employment contracts for 500 American companies over a seventeen year time span. The study determined how often the contracts included non-competes, whether the use of non-competes has increased over time, whether the use of non-competes is correlated to profitability, … Continue Reading

North Dakota Non-Compete Law Shares History with California

By on Posted in: Non-Compete, Uncategorized, Unfair Competition
North Dakota has one of the fastest-growing workforces in the country as the result of recent advances in extracting natural gas and oil.  As more employers seek to hire in or transfer employees to the Peace Garden State, many are surprised to discover that North Dakota law prohibits non-compete agreements. North Dakota Century Code Section … Continue Reading
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