Category: Employee Mobility and Restrictive Covenants

The most recent installment of the Restricting Covenant Series was inspired by the Jeopardy! tournament “The Greatest of All Time,” where champion Ken Jennings edged out two other competitors to win the million-dollar prize. So, for the crossword and quiz show enthusiasts, here is the clue in the form of an answer (and the subject of this article): This 17-letter word means to cut out the middleman in connection with a transaction.  Correct response: What is “disintermediation”?  What does disintermediation have to do with noncompete agreements?  Read on.

Continue reading “Part 25 of “The Restricting Covenant” Series: Disintermediation and Noncompetes”

There are many notable east coast-west coast rivalries.  In sports (Celtics versus Lakers basketball), in leisure (Atlantic versus Pacific beaches), or in food (Shake Shack versus In-N-Out Burger), to name a few.  With respect to restrictive covenants, the conflict between Delaware, which is generally considered a “pro-enforcement” jurisdiction, and California, which is generally considered an “anti-enforcement” jurisdiction, definitely stands out in the crowd.  This installment of the Restricting Covenant Series looks at the competing views of the Golden State and The First State’s on the enforceability of restrictive covenants, and the critical importance of conducting a “choice of law” analysis to settle this feud.

Continue reading “Part 24 of “The Restricting Covenant” Series: Choice of Law and Covenants Not to Compete”

As we have previously discussed, there is an ongoing trend of states prohibiting the use of non-compete agreements in certain situations, including with lower-wage workers. Maine and New Hampshire are the most recent examples.

Continue reading “Maine and New Hampshire Join National Trend, Enacting Laws Prohibiting Non-Competes for Lower-Wage Workers”

Not too many topics related to restrictive covenants gain buzzworthy status. However, when state and federal governmental agencies and class action attorneys start filing lawsuits nationwide, and Fortune 500 companies in various industries start settling and agreeing to change the way they do business, well, that usually generates some buzz and attention. It seems that not a week goes by lately without a new headline discussing the latest hot-bottom issue in the world of restrictive covenants – “no-poaching” agreements.

Continue reading “Part 22 of “The Restricting Covenant” Series: No-Poaching Agreements”