On May 2, 2022, the New Jersey State Assembly introduced Assembly Bill (AB) 3715 that, if enacted, would significantly limit the use and enforceability of certain restrictive covenant provisions, while mandating additional procedural requirements. AB 3715 is similar to prior
Restrictive Covenant Report
A blog on restrictive covenants, trade secrets, and unfair competition for employers
Latest from Restrictive Covenant Report - Page 2
Colorado Senate Passes Non-Compete Bill to Further Limit Use of Agreements and Increase Non-Compliance Penalties
The Colorado Senate recently passed House Bill 22-1317 which, if enacted into law, would significantly limit the enforceability of any non-compete agreements executed after the law’s effective date for employers with employees working or living in Colorado. If Governor Polis…
D.C. Non-Compete Ban Applicability Date Postponed to October 1, 2022
As reported in a web article prepared by our D.C. colleagues Matt Nieman, Joe Schuler, Caroline Cheng, and Alyssa Testo, found here, the District of Columbia Council again has deferred the “applicability date” of the D.C. Non-Compete Ban, this…
Ohio Appeals Court Reinforces a Trial Court’s Ability to Modify Noncompete Agreements
In MetroHealth Sys. v. Khandelwal, 2022-Ohio-77, Ohio’s Eighth District Court of Appeals affirmed a trial court’s modification of a noncompete agreement between a hospital and a physician formerly employed by the hospital. Both courts reasoned that modifying the agreement,…
Reaction and Response to the FTC & DOJ Workshop on Labor Market Competition
The Federal Trade Commission (FTC) and the Department of Justice (DOJ) hosted a virtual workshop on December 6-7, 2021, bringing together agency representatives, lawyers, economists, academics, and other experts to discuss issues affecting competition in the labor market (“Workshop”).
We…
Florida Decision Highlights Strategy for Immediately Appealing Denial of Temporary Injunction
In many non-compete cases, the employer seeks a temporary injunction at the outset of the case to prevent further harm. If the employer loses that motion, the case usually settles or proceeds to discovery as in a standard civil action.…
New Bills Seek to Void Restrictive Covenants for Employers with Vaccine Mandates
Employers in the U.S. are facing regulatory upheaval on multiple fronts. The federal government has taken up a new interest in potentially limiting the applicability of restrictive covenants, such as non-compete agreements. Meanwhile, the Occupational Safety and Health Administration (OSHA)…
Podcast: Enforceability of Physician Non-Compete Agreements
Including non-compete covenants in physician employment and shareholder agreements is common practice. Whether they are legally enforceable as drafted varies from state to state. In this podcast, Jackson Lewis attorneys explore how hospital systems and medical groups can protect…
Illinois Governor Signs New Non-Compete Bill
The Illinois General Assembly passed a major bill in May that significantly alters how and when employers can use restrictive covenants with Illinois employees. Illinois Governor JB Pritzker signed the bill into law on August 13, 2021, and it will…
Why We Signed a Joint Letter Urging Caution in Non-Compete Regulation
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…