Articles Discussing Restrictive Covenants In The Workplace And Other Topics Relating To Unfair Competition.

Over the last several years, business-to-business “no-hire” and “no-poach” agreements have come under legal attack, including through enforcement actions by the Federal Trade Commission and criminal prosecutions by the U.S. Department of Justice. Even President Biden jumped into the fray on July 9, 2021, when he issued his “Executive Order

Breathing new life into “uniqueness” (of an employee’s services) as a legitimate business interest supporting enforcement of non-competition covenants under New York law, the U.S. Court of Appeals for the Second Circuit affirmed the grant of a preliminary injunction barring a designer with an active social media presence from competing with her former employer. JLM Couture, Inc. v. Gutman, No. 21-870-cv (2d Cir. Jan. 25, 2022).

Non-solicitation clauses in physician shareholder and employment agreements are under increased scrutiny, and enforcement actions concerning non-solicitation covenants are on the rise. 

At the end of a complicated case, an employer obtained a nearly $7.5 million jury verdict in enforcement of restrictive covenant agreements and as a result of the unfair competition and breaches of the duty of loyalty of a former partner, sales manager, four former sales employees, and their new competing businesses. Modern Remodeling, Inc. v. Tripod Holdings, LLC, et al., No. CCB-19-1397 (D. Md. Nov. 30, 2021).

On July 9, 2021, President Biden issued an executive order aimed at promoting competition in the economy, including directing the Federal Trade Commission (FTC) to consider exercising its rulemaking authority “to curtail the unfair use of non-compete clauses and other clauses or agreements that may unfairly limit worker mobility.”

Employers in the U.S. are facing regulatory upheaval on multiple fronts. The federal government has taken up a new interest in potentially limiting the applicability of restrictive covenants, such as non-compete agreements. Meanwhile, the Occupational Safety and Health Administration (OSHA) has issued an Emergency Temporary Standard (ETS) (currently stayed

Including non-compete covenants in physician employment and shareholder agreements is common practice. Whether they are legally enforceable as drafted varies from state to state. In this podcast, Jackson Lewis attorneys explore how hospital systems and medical groups can protect their goodwill and legitimate business interests.

Non-compete covenants in physician employment and shareholder agreements are common practice. Whether they are legally enforceable as drafted varies from state to state. Some states have broad interpretations of reasonableness — and there’s a growing trend to disallow these types of agreements completely.

A New York Arbitrator’s recent decision invalidating the non-disclosure agreement (“NDA”) signed by former Apprentice star turned White House advisor Omarosa Manigault Newman (“Omarosa”) is a cautionary tale for employers who make regular use of such agreements with their employees.

Few experts in the field of unfair competition law would disagree that the 2018 decision in AMN Healthcare, Inc. v.

Employees are the most valuable assets of any company. Particularly in the life sciences industry, where employees are often highly skilled and entrusted with trade secrets, it is mission critical to protect against unfair poaching by competitors.

Earlier this month, President Joseph Biden issued an Executive Order encouraging the Federal Trade Commission (FTC) to “curtail the unfair use of non-compete clauses and other clauses or agreements that may unfairly limit worker mobility.”

We joined more than 50 lawyers and paralegals around the country – all of

President Biden’s executive order on “Promoting Competition in the American Economy” arguably could have little to no immediate–or even long term impact–on physicians in the healthcare industry, as physician non-compete agreements (“NCAs”) are already subject to the strictures of state law in a purposeful manner that promotes access and continuity of care, while concomitantly preserving healthcare providers’ ability to protect their investment. 

According to the U.S. Department of Justice (DOJ), on July 15, 2021, DaVita Inc. and its former chief executive officer were accused in an indictment of two counts of violating the Sherman Act, an antitrust law, by conspiring with two competitors to not solicit or hire each other’s key employees.

President Biden’s executive order on “Promoting Competition in the American Economy” arguably could have little to no immediate–or even long term impact–on physicians in the healthcare industry, as physician non-compete agreements (“NCAs”) are already subject to the strictures of state law in a purposeful manner that promotes access and continuity of care, while concomitantly preserving healthcare providers’ ability to protect their investment.