A recent employer settlement with a National Labor Relations Board Region shows that the General Counsel is not just focused on noncompetition restrictions, but also nonsolicitation restrictions that the General Counsel believes are overbroad.
Author: Lawrence Del Rossi
New York Legislature Agrees to Ban Noncompete Agreements
New York state is poised to join four other states in banning employment-related noncompete agreements. In addition to standalone noncompetition agreements, noncompete restrictions on employees within offer letters, employment agreements, stock option agreements and other employment-related agreements, are subject to the new law’s prohibition.
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Part 28 of the “The Restricting Covenant Series”: Worldwide Noncompete Restrictions
Grab your passports, compass and other essential travel gear, as this edition of The Restricting Covenant Series navigates through the treacherous waters of noncompete agreements and their geographic reach.
First Stop: New Jersey
Ah, the Garden State. Home to the most diners and shopping malls. Where the state bird is the American goldfinch, the state flower is the violet, but alas there is no official state song (perhaps a New Jersey native such as Bruce Springsteen, John Bon Jovi or Queen Latifah will change that). Who would ever want to leave? Well, suppose you worked for a New Jersey company that required you to sign a noncompete with a geographic restriction that prohibits you from competing in business against your employer anywhere within the entire Garden State after your employment ends (that’s right, all 365 exits and entrances on the Garden State Parkway). Could such a statewide geographic restriction be enforced? The short answer is: Maybe.
Not Every Whistleblower Is a “Whistleblower” under New Jersey’s CEPA
A recent decision issued by the Chief Judge of the United States District Court for the District of New Jersey is a reminder that not every employee who “blows the whistle” is a “whistleblower” protected under the New Jersey Conscientious Employee Protection Act (CEPA), and that the New Jersey Supreme Court’s gatekeeping instructions to trial courts in Dzwonar v. McDevitt (2003) are alive and well.
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Top 3 Employee Mobility and Restrictive Covenant Issues to Watch For in 2021
With 2020 finally in our rearview mirror, we can begin to look ahead to a promising and prosperous 2021. As the cloud of COVID-19 starts to lift (thanks to several vaccines), we expect employers will slowly begin to reopen their offices, employees will travel more, and the job market may revert back to the low unemployment levels that predated the onset of COVID-19 in March 2020. The ever-changing landscape of restrictive covenants certainly could affect all of this employment-related activity, including non-competes and non-solicits. Here are our early predictions for the Top 3 hot-button issues to look out for in the coming year.
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Bostock Six Months Later and Open Questions About Title VII’s Religious Organization Exception
Starkey v. Roman Catholic Archdiocese of Indianapolis has been appealed. We expect the Seventh Circuit will soon have the opportunity, post-Bostock, to weigh in on the intersection of Title VII’s sexual orientation and gender identity protections and its religious organization exception, related to a religious organization’s employment decisions. This could foreshadow future disputes and court rulings in this developing area of the law.
For the full alert, visit the Faegre Drinker website.