New Jersey may be next up to join the growing number of states that significantly restrict the use of non-competition agreements in employment. As we discussed back in December 2017, a bill proposed in New Jersey at the time, Senate Bill 3518, would “impose significant restrictions and limitations” on the use of restrictive covenants
David M. Walsh
White House Continues Attack on Non-Compete Agreements
The assault on non-compete agreements has continued in a significant way, as outlined in our web article, White House Continues Attack on Non-Compete Agreements. The latest White House document, coupled with prior reports from the White House and Treasury Department, as well as actions initiated by the Attorney General of New York and the Attorney…
Unintended Consequences of Arbitration Provisions
A recent unpublished decision of the United States District Court, Eastern District of Pennsylvania, highlights the importance for employers to review carefully their agreements containing restrictive covenants to ensure they do not unintentionally limit the available avenues for relief.
In Healthcare Servs. Grp., Inc. v. Fay, 2015 BL 33694 (Oct. 14, 2015), Healthcare sued…
New Jersey High Court Clarifies Disgorgement as Remedy for Breach of Duty of Loyalty
By: Richard J. Cino, David M. Walsh, and Eliza L. Lloyd
The absence of actual economic loss to an employer as a result of an employee’s breach of the duty of loyalty does not preclude the employer from being awarded the equitable remedy of disgorgement, a unanimous New Jersey Supreme Court has ruled. Kaye v. …
Delay Leads to Denial of Request for Injunctive Relief in New Jersey Lawsuit
A recent decision from the United States District Court for the District of New Jersey highlights the perils of delay before applying for injunctive relief. In PTT, LLC v. Gimme Games, et al. No. 13-7161 (JLL/JAD), PTT, a slot machine developer, sued competitor Gimme Games and former PTT executives who started Gimme Games, for misappropriation,…
New Jersey Federal Court Allows Non-Party to Employment/Non-Compete Agreement to Invoke Arbitration Clause
A New Jersey federal court recently granted a defendant-company’s motion to compel arbitration pursuant to a non-compete agreement between the plaintiff-company and two former employees who had discontinued employment with the plaintiff and went to work for the defendant. The case is Precision Funding Group, LLC v. National Fidelity Mortgage, Civ. No. 12-5054 (RMB/JS),…