Tag: noncompete

Washington Supreme Court Limits Duty of Loyalty Exception to Anti-Moonlighting Law

By Emily A. Bushaw, Heather Shook, Neela Brocato, Attorneys, Perkins Coie Apr 23, 2025 HR Management & Compliance

Updated: Apr 23, 2025

The Washington Supreme Court recently limited when an employer can restrict low-wage workers from moonlighting. The court ruled such agreements are presumptively invalid for low-wage workers unless they are reasonable and narrowly tailored. Washington’s Anti-Moonlighting Law Since 2020, Washington has restricted employers from prohibiting their low-wage workers from moonlighting—having an additional job, supplementing their income […]

Navigating the Unsettled Noncompete Landscape

By Jacqueline Johnson, Constangy, Brooks, Smith & Prophete Aug 26, 2024 HR Perspectives

Updated: Aug 26, 2024

It has been ten years since a Jimmy John’s employee leaked a copy of a noncompete agreement that the company required employees (including store-level employees such as sandwich makers and delivery drivers) to sign. The noncompete restricted employees from performing any services for a business which derived more than 10% of its revenue from selling […]

The End of Non-Competes? What HR Professionals Need to Know About the FTC’s Latest Ruling

By Lin Grensing-Pophal, Contributing Editor May 1, 2024 HR Management & Compliance

Updated: May 21, 2024

Non-compete agreements, often used to protect business interests by restricting the ability of employees to enter into competition with their former employers, have been a staple in employment contracts for years. As detailed in our previous discussion on non-compete agreements published on March 4, 2024, these agreements are designed to safeguard trade secrets and investments […]

If Noncompetes Are Gone, What’s Next?

By Chase Webb & Alyssa Lankford, Attorneys, McAfee & Taft Aug 21, 2023 HR Management & Compliance

Updated: Aug 21, 2023

Protecting against intellectual property theft and unauthorized disclosure of confidential business information has always been an important practice for businesses, yet the continuing evolution of the labor market post-COVID has increased the risk of intellectual property loss due to employee mobility and remote work. Employers have traditionally turned to noncompete, nonsolicitation, and confidentiality agreements to […]

Focus on Noncompetes Increases After the Great Resignation

By Nate Read & Devin Bates, Attorneys, Mitchell Williams Oct 3, 2022 HR Management & Compliance

Updated: Oct 3, 2022

We’re hearing from business clients what we’re all seeing in the headlines: Employees are hard to hire and retain these days. “The Great Resignation” is a new phrase used to describe the unprecedented level of employee movement in the past year. A natural consequence of this phenomenon is that noncompete agreements are being tested now […]

Can Hypotheticals Render Restrictive Covenants Unenforceable?

By Noah T. Rusch, Axley Attorneys Sep 22, 2022 HR Management & Compliance

Updated: Sep 22, 2022

On July 14, 2022, the Wisconsin Court of Appeals ruled in favor of a former employee in a dispute over whether two uniquely worded restrictive covenants against him violated Wisconsin law. The case presents new considerations regarding what employers can and cannot include in noncompete clauses with severed employees.

DOJ Urges State Court to Use Antitrust Principles to Invalidate Noncompetes

By Kathy L. Osborn, David A. Given, Anna M. Behrmann, and Susanne A. Johnson; Attorneys; Faegre Drinker Apr 19, 2022 HR Management & Compliance

Updated: Apr 19, 2022

Noncompete agreements between employers and their employees traditionally are governed by state law. But that didn’t stop the Antitrust Division of the U.S. Department of Justice (DOJ) from recently filing a statement of interest encouraging a Nevada state court to consider federal antitrust principles to invalidate noncompete agreements between a large medical group and its physician-employees.

Top 10 Noncompete Law Developments of the Past Year

By Charles F. Knapp and Kerry C. Zaroogian, attorneys, Faegre Drinker Feb 7, 2022 HR Management & Compliance

Updated: Feb 7, 2022

Lawmakers and courts continued to demonstrate hostility toward noncompete and no-hire agreements in 2021. The activity underscores employers’ need to stay current on the diverse state-specific limitations governing restrictive covenants, new federal activity in the area, and ongoing case law developments.

Washington Law Limiting Noncompetes Takes Effect January 1

By Stephanie Holstein, Attorney, Perkins Coie LLP Dec 4, 2019 HR Management & Compliance

Updated: Dec 4, 2019

Washington’s new law significantly restricting employers’ use of noncompetition agreements takes effect January 1, 2020. In addition to limiting the use of noncompetes, the law provides for generous damages when an individual successfully claims a noncompete is unenforceable.