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
Massachusetts 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 Unenforceable
States 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 Agreements
Texas Caps Physician Non-Compete Buyouts and Adds New Limits Under SB 1318
On June 20, Texas Governor Greg Abbott signed Senate Bill 1318 (Amendment) into law, amending Texas Business & Commerce Code Section 15.50(b), which is commonly thought of as the “Texas physician non-compete buyout statute.” Specifically, the statute previously required that any non-compete restricting a physician’s right to practice medicine must include a buyout right, permitting the physician to pay a certain buyout amount to avoid the non-compete restriction. Continue Reading Texas Caps Physician Non-Compete Buyouts and Adds New Limits Under SB 1318
Register 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
Webinar | Recent Legal Developments and Post-Election Insights for Employers
Join us for a webinar where we will address important employment law developments, discuss current challenges for employers, and provide insight into potential changes impacting employers following the upcoming election.Continue Reading Webinar | Recent Legal Developments and Post-Election Insights for Employers
Notices Under FTC Rule on Non-Competes: What Should I Be Doing Now?
As previously covered on our HR Law Talk blog, the Federal Trade Commission’s (FTC) non-compete ban (FTC Rule or the Rule) is scheduled to take effect on September 4, 2024. Issued in April, the FTC Rule prohibits all non-competes arising out of employment relationships – with the exception of existing agreements with “senior executives,” as defined by the Rule. Although many legal experts have hypothesized that the federal courts would enjoin the Rule, the future of the FTC Rule remains uncertain. Accordingly, employers must remain informed on the most recent court rulings involving the FTC Rule and prepare as though it will take effect on September 4.Continue Reading Notices Under FTC Rule on Non-Competes: What Should I Be Doing Now?
Scope and Impact of the FTC’s Non-Compete Rule for Employers
On April 23, the Federal Trade Commission (FTC) voted to adopt a monumental final rule prohibiting employers from entering into non-competes against all workers within the jurisdiction of the FTC – a move that is poised to reshape how employers approach employment agreements.Continue Reading Scope and Impact of the FTC’s Non-Compete Rule for Employers
Register Now | Key Considerations for General Counsel Webinar
Join us on May 14 for a deep dive into top legal trends that general counsel should prioritize as they continue to navigate 2024’s evolving regulatory landscape related to labor and employment issues and developments. Our presenters will discuss various topics, including challenges related to DEI initiatives and disclosures and the SEC’s focus on separation and severance agreements. They will also revisit the FTC’s non-compete ban and provide relevant updates.Continue Reading Register Now | Key Considerations for General Counsel Webinar
Register Now | The FTC’s Non-Compete Ban: What Employers Need to Know Webinar
The Federal Trade Commission (FTC) has announced that on April 23 it will vote on publishing and then adopting a finalized new rule that will prohibit employers from enforcing non-competes against workers. Under the originally proposed rule, non-compete agreements that bar any worker from accepting competing employment or starting a competing business would be prohibited with some exceptions for a limited category of transactions.Continue Reading Register Now | The FTC’s Non-Compete Ban: What Employers Need to Know Webinar