Dentons’ employment lawyers are experienced in drafting, litigating and winning claims involving restrictive covenants. Typically found in employment-related documents such as offer letters, employment agreements, equity grants, employee handbooks, stand-alone restrictive covenant agreements and separation agreements, basic restrictive covenants usually fall into one of four categories:

1. Confidentiality provisions prohibiting disclosure of certain confidential, proprietary information
2. Non-competition provisions prohibiting former employees from working in a competitive business for a specified period of time
3. Non-solicitation of employees provisions prohibiting former employees from soliciting the former employer’s employees for a specified period of time
4. Non-solicitation of customers provisions prohibiting former employees from soliciting the former employer’s customers for a specified period of time

When Dentons joins your team, our employment lawyers help you protect your rights to confidential, proprietary information. With our expertise in drafting restrictive covenants and other provisions, your employees will understand their duties to you, and you will know how best to protect against the loss of confidential information, customers, and other employees.

Sometimes, though, you need to decide to fight. We can provide expert advice on asserting claims against former employees, such as breach of contract and breach of fiduciary duty. Our litigators understand the procedural and substantive laws involved in obtaining expedited discovery, temporary restraining orders, and preliminary injunctions (or opposing them, if we are defending such claims). We have the experience to successfully litigate these matters efficiently and to conclusion. We also understand the costs involved in litigating these matters and appreciate that certain clients will selectively choose this strategy. As business advisors and strategists, the employment lawyers at Dentons help you weigh risks and costs in the context of your overall business plans.

Insights

U.S. Supreme Court Overrules Chevron Doctrine – Implications for Employers

July 3, 2024

On June 28, 2024, the United States Supreme Court overruled its landmark 1984 decision in Chevron v. Natural Resources Defense Council, 467 U.S. 837 (creating what is known as the “Chevron Doctrine”), which called for judicial deference to agencies in situations where the law is unclear. Since 1984, the U.S. Supreme Court has relied on Chevron in 70 decisions; federal courts considering administrative authority have cited Chevron over 18,000 times. Specifically in the labor and employment context, agencies such as the U.S. Department of Labor, the Occupational Safety and Health Administration, the Federal Trade Commission, and the Equal Employment Opportunity Commission, have heavily relied on and regularly invoked the Chevron Doctrine. With Chevron overturned, courts moving forward will likely be less willing to defer to administrative agencies and more willing to question agency-driven rules.

Post-termination competition: the good, the bad and the blatant

January 8, 2024

United Kingdom: In the recent case of PSN Recruitments Ltd v Ludley and another (2023), the Intellectual Property Enterprise Court (IPEC) held that the claimant (the former employer) had suffered loss and damage amounting to more than £80 thousand in proceedings for passing-off.

Enforcing restrictive covenants – do not wait to act!

August 31, 2023

United Kingdom: We look at an ongoing case about enforcing restrictive covenants. The key message is not to delay in taking action against an employee whom you suspect is breaching or will breach their post-termination obligations. 

View all insights for Restrictive Covenant Disputes