Restrictive Covenant Report

A blog on restrictive covenants, trade secrets, and unfair competition for employers

Blog Authors

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Gregory H. Andrews

Martin W. Aron

Clifford R. Atlas

Latest from Restrictive Covenant Report

Restrictive Covenant Report

Why We Signed a Joint Letter Urging Caution in Non-Compete Regulation

By Clifford R. Atlas & Erik J. Winton

July 30, 2021

Earlier this month, President Joseph Biden issued an Executive Order encouraging the Federal Trade Commission (FTC) to “curtail the unfair use of non-compete clauses and other clauses or agreements that may unfairly limit worker mobility.” We joined more than 50 lawyers and paralegals around the country – all of us experienced restrictive covenant practitioners – in signing a joint letter urging the White House and the FTC to exercise caution in regulating non-compete agreements. Drafted…

Restrictive Covenant Report

D.C. Budget Bill Includes April 1, 2022 Applicability Date for Non-Compete Ban

By Joseph E. Schuler & Jonathan L. Crook

July 26, 2021

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The District of Columbia passed one of the nation’s most stringent regulations on covenants not to compete earlier this year. Except in very limited circumstances, the law states employers may not require or request employees sign an agreement that includes a non-compete provision, and employers cannot have a workplace policy that prohibits an employee from “(1) [b]eing employed by another person; (2) [p]erforming work or providing services for pay for another person; or (3) [o]perating…

Restrictive Covenant Report

President Biden Issues Executive Order Calling on FTC to “Curtail Unfair Use” of Non-Competes and Other Restrictive Covenants

By Clifford R. Atlas, Erik J. Winton & Jonathan L. Crook

July 9, 2021

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There have been whispers of federal regulation of non-compete agreements for years. Multiple bipartisan bills aiming to ban non-competes have fallen to the wayside without traction. The Federal Trade Commission hosted a workshop in January 2020 (attended by our own Erik Winton) “to examine whether there is a sufficient legal basis and empirical economic support” to restrict non-competes. Today, President Biden took another step toward federal regulation by issuing a sweeping Executive Order that, among…

Restrictive Covenant Report

New Georgia Decision Clarifies Scope of Computer Trespass Statute

By Todd Van Dyke

June 24, 2021

Just as the United States Supreme Court recently limited the reach of the federal Computer Fraud and Abuse Act (“CFAA”) in Van Buren v. United States, the Georgia Supreme Court has now reined in the Georgia state law counterpart to the CFAA. Background In Kinslow v. State, No. S20G1001 (June 21, 2021), the defendant was an IT employee of the City of Norcross. The defendant allegedly altered the City’s computer network settings to cause…

Restrictive Covenant Report

Ohio Decision Highlights Importance of Business Protection Agreements with Independent Contractors

By Patrick O. Peters

June 16, 2021

Just as the distinction between an individual’s status as independent contractor versus employee can have serious ramifications for wage, tax, and other legal issues, the same can be true for claims relating to unfair competition. As a recent decision from the Court of Appeals of Ohio highlights, employers must be especially diligent protecting against unfair competition when engaging independent contractors to carry out their business. Factual Background In Key Realty, LTD. v. Hall, 2021-Ohio-1868,…

Restrictive Covenant Report

New Nevada Law Further Regulates Restrictive Covenants

By Joshua A. Sliker

June 9, 2021

Important amendments to Nevada’s non-compete statute, NRS 613.195, recently were enacted when Nevada Governor Steve Sisolak signed into law Assembly Bill 47. Because A.B. 47 does not have a specified effective date, it will go into effect on October 1, 2021, pursuant to Nevada law. Ban on Non-Competes for Hourly Employees First, A.B. 47 bans non-compete covenants for employees who are “paid solely on an hourly wage basis, exclusive of any tips or gratuities.”…

Restrictive Covenant Report

Illinois Passes Bill to Further Limit Restrictive Covenants for Employees

By Gregory H. Andrews

June 8, 2021

After extensive negotiations between interest groups representing both employees and businesses, the Illinois General Assembly passed a major bill on May 31, 2021, that further limits and clarifies the circumstances in which restrictive covenants can be enforced against Illinois employees. Illinois Governor J. B. Pritzker is expected to sign the bill into law. We provide a detailed analysis of the new law and its impact for Illinois employers in our article here. The new…

Restrictive Covenant Report

“So” What? SCOTUS Adopts Narrow Interpretation of CFAA

By Clifford R. Atlas, Erik J. Winton & Jonathan L. Crook

June 7, 2021

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It’s not every day the U.S. Supreme Court issues an opinion relevant to this blog, so we are understandably excited when it does. In a landmark decision, the Court has ruled that the Computer Fraud and Abuse Act (CFAA), 18 U.S.C. § 1030 et seq., does not prohibit improper use of computer information that an individual was authorized to access. Rather, the law prohibits obtaining information from areas of a computer, such as files, folders,…

Restrictive Covenant Report

North Carolina Court Upholds 10-Year Restrictive Covenant Between Employer and Former Employee

By Jonathan L. Crook

April 13, 2021

When one thinks of a “reasonable” temporal scope for a restrictive covenant between employer and employee, usually that period is measured in months or years, not decades. But as a recent North Carolina decision reminds us, context is everything, and a 10-year restriction can be enforceable in the right circumstances. In KNC Techs., LLC v. Tutton, 2021 NCBC LEXIS 38 (N.C. Super. Ct. Apr. 8, 2021), Eric Tutton (“Tutton”) entered into a Non-Compete Agreement…

Restrictive Covenant Report

Two New Connecticut Bills Aim to Prohibit Physician Non-Competition Agreements

By Justin E. Theriault

March 23, 2021

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Connecticut lawmakers recently introduced two bills that seek to ban non-competition agreements for physicians. If implemented, this would be the second time in five years that Connecticut has legislated in the area of physician restrictive covenants. In mid-2016, Connecticut enacted legislation that implemented a maximum one-year temporal limitation on physician non-competition agreements, as well as a geographic limitation of no greater than fifteen miles from the primary site where such physician practices. The law also…

Restrictive Covenant Report

A blog on restrictive covenants, trade secrets, and unfair competition for employers

Blog Authors

Why We Signed a Joint Letter Urging Caution in Non-Compete Regulation

D.C. Budget Bill Includes April 1, 2022 Applicability Date for Non-Compete Ban

President Biden Issues Executive Order Calling on FTC to “Curtail Unfair Use” of Non-Competes and Other Restrictive Covenants

New Georgia Decision Clarifies Scope of Computer Trespass Statute

Ohio Decision Highlights Importance of Business Protection Agreements with Independent Contractors

New Nevada Law Further Regulates Restrictive Covenants

Illinois Passes Bill to Further Limit Restrictive Covenants for Employees

“So” What? SCOTUS Adopts Narrow Interpretation of CFAA

North Carolina Court Upholds 10-Year Restrictive Covenant Between Employer and Former Employee

Two New Connecticut Bills Aim to Prohibit Physician Non-Competition Agreements

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