Published: December 21, 2017

On November 27, 2017, Pennsylvania became the next state to join the national trend to limit the use of restrictive covenants when a bill was introduced in the Pennsylvania House that would ban non-competition covenants in employment agreements.

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Published: December 13, 2017

In keeping with the national trend limiting the use of restrictive covenants, in November 2017, the New Jersey Senate introduced SB3518, a bill setting forth sweeping restrictions that would limit the enforceability of non-competes. The bill states that restrictive covenants “impede the development of business in the State by driving skilled workers” out of New Jersey, “discourage innovation and production, impose special hardships on employees . . .

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Published: June 21, 2017

A Massachusetts trial court judge sitting in the Business Litigation Session recently issued a decision, in Oxford Global Resources, LLC v. Hernandez (1684CV003911-BLS2) (June 9, 2017), refusing to enforce Massachusetts choice of law and choice of venue provisions in an employment contract on the ground that enforcement would result in a “substantial injustice” to the defendant, a California-based employee.

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Published: April 26, 2017

On April 19, 2017, a Pennsylvania appeals court ruled that conversion to at-will employment after the end of a contract does not relieve employees of a non-solicitation provision. This opinion overturns a trial court decision against Metalico Pittsburgh, Inc., a scrap metal broker.
 

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Published: October 5, 2016

On September 25, 2016, California Governor Jerry Brown signed into law S.B. 1241, which prohibits employers from requiring employees, as a condition of employment: (1) to litigate or arbitrate claims arising in California outside of California; and (2) to agree to the application of another state’s law for controversies arising in California.  These prohibitions apply to contracts entered into, modified, or extended on or after January 1, 2017, and are applicable to employees who primarily reside and work in California.

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Published: June 8, 2015

Resolving previously unsettled law in Wisconsin, the Wisconsin Supreme Court recently held in Runzheimer International Ltd v. Friedlen that continued employment of an at-will employee following the execution of a restrictive covenant, such as a non-competition agreement, is sufficient consideration to enforce the restrictive covenant.

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Published: August 20, 2013

In a somewhat surprising development, the Illinois Appellate Court recently ruled that restrictive covenants are not enforceable if an employee has worked less than two (2) years for the employer seeking enforcement, unless that employee has received special, additional consideration beyond being hired for agreeing to the restriction. Fifield v. Premier Dealer Services (Illinois Appellate Court, 1st District, June 24, 2013).

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