Under Texas law, to establish an enforceable covenant not to compete, the first question is often whether the covenant is supported by adequate consideration. Unlike many states, in Texas, an employer cannot pay for a restrictive covenant (which includes both noncompetes and customer non-solicitation restrictions). In other words, in Texas, a raise, bonus or severance … Continue Reading
California employers and their legal counsel reasonably had assumed that California law distinguishes employee non-solicitation agreements from noncompetition agreements and that the former were enforceable. That assumption was based largely on a 1985 decision by the California Court of Appeal in Loral Corp. v. Moyes, 174 Cal. App. 3d 268, which enforced an agreement prohibiting a … Continue Reading
Last week, the Office of the New York Attorney General (NYAG’s Office) reached a settlement with WeWork, a New York City-based company that provides shared “co-work” spaces nationwide and internationally – and, notably, is one of the largest office tenants in New York City – regarding its use of non-compete restrictions with its employees. Recently, … Continue Reading