On February 3, the Delaware Supreme Court issued a critical decision for private equity (PE) sponsors and institutional employers in North American Fire Ultimate Holdings LP v. Doorly. The court clarified that restrictive covenants—specifically non-competes tied to equity grants—remain enforceable even if the equity is later forfeited due to an employee’s misconduct.
Continue Reading Delaware Supreme Court Reverses Court of Chancery, Affirming that Forfeited Equity Remains Valid Consideration for Non-Competes
Delaware Chancery Court Enforces Properly Limited Non-Compete While Delaware Supreme Court Affirms Refusal to Enforce or “Blue Pencil” Overbroad Non-Competes
Over the last few years, and just last week, Delaware courts have refused to enforce, or to revise or “blue pencil” to make enforceable, a number of restrictive covenants, even in the traditionally favored sale‑of‑business context, when the covenants appear to exceed the protectable interest of the business with respect to the particular seller or senior executive that agreed to the restrictive covenants. Against that backdrop, the Court of Chancery’s December 8, 2025, ruling in Derge v. D&H United Fueling Solutions Inc. stands out: the court enforced a five‑year, multinational non‑compete against a target C-suite executive who held only a 0.73% stake and received roughly $965,000 at closing.
Continue Reading Delaware Chancery Court Enforces Properly Limited Non-Compete While Delaware Supreme Court Affirms Refusal to Enforce or “Blue Pencil” Overbroad Non-CompetesMassachusetts Superior Court Holds Noncompete Agreements Between Parent Companies and Their Subsidiaries’ Employees Are Unenforceable
The Massachusetts Superior Court has ruled that noncompete agreements arising out of the employment relationship entered into between a parent company and a subsidiary’s employee are not enforceable because the parent company does not fall within the meaning of “employer” under the Massachusetts noncompete statute.
Continue Reading Massachusetts Superior Court Holds Noncompete Agreements Between Parent Companies and Their Subsidiaries’ Employees Are UnenforceableFifth Circuit Rules NLRB’s Removal Protections for Members and ALJs Likely Unconstitutional
In a major setback for the National Labor Relations Board (NLRB), the Fifth Circuit Court of Appeals recently upheld an injunction, preventing the NLRB from holding an unfair labor practice (ULP) hearing against SpaceX and other employers.
Continue Reading Fifth Circuit Rules NLRB’s Removal Protections for Members and ALJs Likely UnconstitutionalStates Continue to Refine Their Treatment of Non-Competition Agreements
The vast body of restrictive covenant law continues to develop across the country as states navigate refining their approach to non-compete and non-solicitation agreements with some expansions along with the general trend of more restrictions.
Below we outline recent developments regarding state non-compete and non-solicitation laws in Kansas, Virginia, Florida, New Jersey and Colorado.
Continue Reading States Continue to Refine Their Treatment of Non-Competition AgreementsSupreme Court – Same Burden of Proof Applies to All Plaintiffs in Title VII Discrimination Claims, Removing Greater Burden for “Reverse Discrimination” Claims
On June 5, the U.S. Supreme Court issued a unanimous decision, overruling the Sixth Circuit’s “background circumstances” rule in employment discrimination cases. The background circumstances rule required members of a majority group to satisfy a heightened evidentiary standard to prevail on a Title VII claim.
Continue Reading Supreme Court – Same Burden of Proof Applies to All Plaintiffs in Title VII Discrimination Claims, Removing Greater Burden for “Reverse Discrimination” ClaimsDOL Announces Enforcement Position on Independent Contractor Rule
On May 1, the U.S. Department of Labor (DOL) issued a Field Assistance Bulletin announcing that the Wage and Hour Division (WHD) will no longer enforce the 2024 independent contractor Final Rule previously established by the Biden administration for purposes of complying with the Fair Labor Standards Act (FLSA).
Continue Reading DOL Announces Enforcement Position on Independent Contractor RuleTennessee Supreme Court Holds that Petitioning the State Government is Not Conduct Protected by the Common Law Tort of Retaliatory Discharge Against a Private Employer
A recent Tennessee Supreme Court decision has addressed a matter of first impression after years of contentious debate regarding employer COVID-19 vaccination policies for employees. Heather Smith (Smith) filed a lawsuit against BlueCross BlueShield (BlueCross) after BlueCross terminated her at-will employment.
Continue Reading Tennessee Supreme Court Holds that Petitioning the State Government is Not Conduct Protected by the Common Law Tort of Retaliatory Discharge Against a Private EmployerRegister Now | Responding to Policy Shifts Under the Trump Administration
As we navigate a new year and a new administration, we are all grappling with an unprecedented wave of executive orders and memoranda from the Trump administration that are reshaping the workplace.
From dramatic shake-ups in the EEOC and NLRB to increased scrutiny of DEI practices, employers are facing yet another season of uncertainty.
Continue Reading Register Now | Responding to Policy Shifts Under the Trump Administration
President Trump Revokes Executive Order 11246
“Ending Illegal Discrimination and Restoring Merit-Based Opportunity” (Order) is one of President Trump’s most recent executive orders. The Order was signed on January 21, 2025. The Order revoked Executive Order EO11246 (EO11246), along with several other previously enacted executive orders aimed at promoting diversity, equity and inclusion (DEI) in the workplace. EO11246 has been in effect since 1965. The White House stated in a fact sheet that the Order will streamline the federal contracting process to “enhance speed and efficiency, reduce costs, and require Federal contractors and subcontractors to comply with [] civil rights laws.”
Continue Reading President Trump Revokes Executive Order 11246