Non-Competes and Protection of Corporate Assets

Joining an emerging trend of legislative and regulatory hostility towards non-compete agreements, on February 28, 2024, the New York City Council introduced three new bills proposing restrictions on non-compete agreements in New York City.  Int. No. 140 proposes an outright ban on non-compete agreements for all workers in New York City.  Int. No. 146 and

In a win for businesses that rely on restrictive covenants to protect their assets and investments, on January 29, 2024, the Delaware Supreme Court unanimously reversed a Chancery Court decision that invalidated a “forfeiture-for-competition” provision in Cantor Fitzgerald’s limited partnership agreement.

As we previously reported on this blog, last January the Chancery Court invalidated

After months of speculation and intense lobbying, New York Governor Kathy Hochul vetoed a bill that would have imposed a near-total ban on employee non-competition agreements in New York State.

Governor Hochul has long expressed her support for legislation banning non-compete agreements for “low and middle-income” employees, but generally balked at the idea of a

In what we believe are her first public statements on the New York Legislature’s proposal to ban ostensibly all non-compete agreements in New York, Governor Hochul on Thursday, November 30 reportedly told a group of reporters:

  1. “What I’m looking at right now is striking the right balance between protecting low and middle-income workers, giving

As recently foreshadowed, the National Labor Relations Board (“NLRB” or “Board”) now appears poised to weigh in on whether noncompete agreements, even those that may be legal under state law, violate the National Labor Relations Act (“Act”).

Background: NLRB GC Targets Noncompetes

On May 31, 2023, Board General Counsel Jennifer Abruzzo issued a memorandum stating

On August 31, 2023, the Delaware Court of Chancery held, with respect to a non-compete provision in an employment agreement, that: (1) the choice of law provision selecting Delaware was “not necessarily binding”; and (2) the non-compete was unenforceable. Centurion Service Group, LLC v. Wilensky, No. 2023-0422-MTZ. This is that court’s second decision