A little-noticed decision from earlier this year rendered by the Supreme Court of New York, Westchester County, demonstrates how enforcement of post-employment restrictive covenants will often boil down to a single question: does the restriction protect a legitimate business interest of the employer?
In Cindy Hoffman, D.O., P.C. v. Raftopol, plaintiff applied for a preliminary injunction against its former employee, a physician’s assistant, who began working for a competitor in technical violation of her past employment non-compete restriction which barred her for two ...
Nevada employers be advised: on June 3, 2017, Governor Brian Sandoval signed into law Assembly Bill 276, which amends Chapter 613 of the Nevada Revised Statutes and sets forth a new framework in which noncompetes are evaluated. The amended law includes the following four changes:
- A noncompete is void and unenforceable unless the noncompete:
- Is supported by valuable consideration;
- Does not impose any restraint that is greater than is required for the protection of the employer for whose benefit the restraint is imposed;
- Does not impose any undue hardship on the employee; and
- Imposes ...
Restrictive covenant agreements are traditionally governed by state law and thus subject to various jurisdictions’ rules regarding enforceability. They stand on a different footing than most other contracts, in that their enforcement is typically susceptible to a court’s equitable powers, and may not always be enforced as written, if at all. States differ on whether their courts will deny enforcement of a restrictive covenant deemed overbroad as written by the parties or instead modify it to meet the particular state’s standards of enforceability. In those states where ...
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Recent Updates
- Georgia Supreme Court Allows for Employee Non-Solicitation Agreements That Lack Express Geographic Limits
- Continued Employment May Constitute Sufficient Consideration for Noncompete Agreements in Connecticut, but Uncertainty Remains
- What the FTC Non-Compete Ban Block Means for Employers - Employment Law This Week Video
- Texas Court Shoots Down FTC Noncompete Ban Nationwide
- Florida Court Joins Texas Court in Granting Preliminary Injunction Against FTC’s Final Rule Banning Noncompetes, but Limits Scope of Injunction to Named Plaintiff