Tag Archives: restrictive covenants

What’s all this talk about federal regulation of non-compete agreements?

On July 9, 2021, the Biden Administration issued a sweeping Executive Order called Promoting Competition in the American Economy (Order). Although it does not immediately change the current legal landscape governing non-compete agreements (or any other aspects of U.S. antitrust enforcement), the Order encourages the Federal Trade Commission (FTC) to “curtail the unfair use of … Continue Reading

Virginia adopts a wave of new employment laws. Part 2 – Worker classification and clampdown on restrictive covenants

As we previously reported on April 23, 2020, in the midst of the COVID-19 pandemic that is dominating the news, Virginia Governor Ralph Northam signed into law a slew of bills passed by the General Assembly that transform Virginia’s employment laws. This is the second part of a series of alerts discussing Virginia’s groundbreaking new … Continue Reading

Texas Legislature takes aim at Anti-SLAPP challenges

The Texas Citizens Participation Act, Tex. Civ. Prac. & Rem. Code §§ 27.001 et seq. (the TCPA), Texas’ anti-SLAPP statute, is likely to receive a much needed overhaul after the Texas Senate unanimously passed H.B. 2730 on May 17, 2019. If the Texas governor signs it into law, as expected based on the bill’s broad … Continue Reading

Illinois Bans Noncompetes for Low-Wage Employees

Starting January 1, 2017, the new Illinois Freedom to Work Act will prohibit private sector employers from entering into covenants not-to-compete with “low-wage employees” who work in the state, and render unenforceable any such restrictions that are entered into on or after that date. The Act defines a “low-wage employee” as one who earns the … Continue Reading

Restrictive Covenants – Little way out for employers when the drafting goes wrong

In the recent case of Prophet  Plc – v- Huggett, the Court of Appeal reminded employers how vitally important it is to ensure that the drafting of restrictive covenants is accurate and well thought through.  Overturning an earlier High Court judgment, the Court of Appeal refused to re-write an unambiguous, but commercially meaningless, restrictive covenant … Continue Reading

Restrictive Covenant Alert – Two-Year Employment ‘Rule’

Our U.S. Commercial Litigation and Disputes colleague Doug Albritton wrote a Client Alert discussing Fifield v. Premier Dealer Servs., Inc., No. 10 CH 9204, 2013 WL 3192931 (Ill. App. Ct. June 24, 2013).  In that case, the court’s apparent announcement of a two-year employment “rule,” which would apply whether (i) the employee resigned or was terminated, and/or (ii) … Continue Reading
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