In a bombshell ruling last year that upended longstanding Delaware law, the Delaware Chancery Court ruled in Ainslie v. Cantor Fitzgerald, L.P., 2023 WL 106924 (Del. Ch. Jan. 4, 2023), that forfeiture-for-competition clauses, under which departing employees must forfeit certain long-term incentive compensation if they join a competitor, are akin to post-employment noncompetes and other restraints of trade. As a result, the Chancery Court determined these forfeiture provisions should be analyzed under a reasonableness standard rather than the employee choice doctrine ...
Blog Editors
Recent Updates
- NLRB General Counsel Calls for Crack Down and Harsh Remedies for Non-Competes and “Stay or Pay” Provisions
- Pennsylvania Plaintiff That Failed in Effort To Block FTC Noncompete Ban Drops Lawsuit
- NLRB Opens New Front in Campaign Against Contractual Restrictive Covenants, Now Targeting No-Poach Provisions in a Business’ Company-to-Company Agreements
- Spilling Secrets Podcast: After the Block - What’s Next for Employers and Non-Competes?
- Georgia Supreme Court Allows for Employee Non-Solicitation Agreements That Lack Express Geographic Limits