Employment Agreements

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Let’s Start at the Very Beginning: Delaware Supreme Court Reaffirms That Consideration for Restrictive Covenants Is Measured at Contract Formation, Not Time of Enforcement

By Dawn Mertineit on February 4, 2026

Posted in Employment Agreements, litigation, Non-Compete Enforceability, Non-Competes, Restrictive Covenants

Judge gavel and book on black background. Law and justice concept — Sasun Bughdaryan, Unsplash

On February 3, 2026, the Delaware Supreme Court issued a short but highly anticipated order in North American Fire Ultimate Holdings, LP v. Doorly, reversing the Chancery Court’s dismissal of contract claims seeking to enforce restrictive covenants against a former senior executive. The decision clarifies that the existence of consideration supporting restrictive covenants must be evaluated at the time…

California Employment Contracts Must be Updated by January 1, 2026 for Stay-or-Pay Reforms

By Marc Fosse on January 14, 2026

Posted in Employment Agreements, Legislation, Restrictive Covenants, State Non-Compete Legislation Update

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Seyfarth Synopsis: Effective January 1, 2026, new California law prohibits stay-or-pay clauses in contracts of employment with limited exceptions.

Under new Section 16608 of the California Business and Professions Code, effective January 1, 2026, employers are prohibited from entering into an employment contract or other contract relating to the employment relationship that requires an employee to repay any amount…

Seyfarth’s Josh Salinas Authors “Recent Developments in Employee Mobility, Restrictive Covenants and Trade Secrets 2025” in ABA Business Law Today

By Daniel Joshua Salinas on August 22, 2025

Posted in Employment Agreements, Federal Non-Compete Legislation Update, FTC’s Crackdown on Non-Competes, Intellectual Property, Non-Competes, Restrictive Covenants, State Non-Compete Legislation Update, Trade Secrets

1755881560-13272-6276-lxb_photob0pNcKAPDSglxb_photo- — Sasun Bughdaryan, Unsplash

We are pleased to share that Seyfarth attorney Josh Salinas authored the article, “Recent Developments in Employee Mobility, Restrictive Covenants and Trade Secrets 2025,” published on August 11, 2025, in the American Bar Association’s Business Law Today.

In the article, Josh examines key developments in employee mobility, trade secret protections, and restrictive covenant enforcement over the past year. He highlights…

Florida Becomes Most Employer-Friendly State for Non-Competes

By Bob Stevens on July 9, 2025

Posted in Employment Agreements, Legislation, Non-Competes, Practice & Procedure, Restrictive Covenants, State Non-Compete Legislation Update

I took this picture when I went to Ultra Music Festival, Miami in 2019 — Denys Kostyuchenko, Unsplash

As jurisdictions around the country continue to impose limitations—or outright bans—on restrictive covenants, Florida is taking a decidedly different approach. The Florida Contracts Honoring Opportunity, Investment, Confidentiality, and Economic Growth (CHOICE) Act (“the Act”) effective as of July 1, 2025 permits employers to use non-compete and garden leave restrictions up to 4 years in length with qualifying “covered employees,” along…

Non-Compete Agreements in Health Care: A Rapidly Evolving Legal Landscape

By Jesse M. Coleman & Reeves Gillis on June 30, 2025

Posted in Employment Agreements, FTC’s Crackdown on Non-Competes, Health Care, Non-Competes, Restrictive Covenants, State Non-Compete Legislation Update

In the wake of the Federal Trade Commission’s recently failed attempt to ban non-compete agreements between employers and workers,[1] individual states have once again taken up the mantle of further regulating and limiting their use. These states’ new efforts have appeared with greatest frequency in the health care sector.

In states where noncompete laws have recently changed, legislatures appear…

Restrictive Covenant Law For The First Four Months of 2025

By Jesse M. Coleman, Eron Reid & Reeves Gillis on May 6, 2025

Posted in Employment Agreements, Federal Non-Compete Legislation Update, FTC’s Crackdown on Non-Competes, Health Care, Non-Competes, Restrictive Covenants, State Non-Compete Legislation Update

explore all that the world has to offer... — Morgan Lane, Unsplash

With the FTC Ban on non-competes essentially dead in the Courts of Appeal, various states and agencies have taken up the mantle to further limit or expand the use of restrictive covenants for certain populations in 2025.

Below is a list of major legislative changes, judicial decisions, and agency actions at the state and federal level affecting non-compete agreements in…

Wyoming Bans Most Non-Compete Agreements Starting July 1, 2025

By Marcus Mintz & Michael Wexler on April 10, 2025

Posted in Employment Agreements, Non-Competes, State Non-Compete Legislation Update, Trade Secrets

1744302968-13194-8612-lxb_photoWmFnT03yrZElxb_photo- — Joe Pee, Unsplash

High-Level

FTC Launches Joint Task Force to Investigate and Prosecute Non-Compete Agreements, as FTC Chairman declares the GOP a “Workers’ Party”

By Jesse M. Coleman, Michael Wexler & Gio Perez on March 7, 2025

Posted in Employment Agreements, Federal Non-Compete Legislation Update, FTC’s Crackdown on Non-Competes, Non-Competes, Restrictive Covenants, Unfair Competition

People signing documents for a wedding — Romain Dancre, Unsplash

As Republicans regain control of the Federal Trade Commission (“FTC”) under the Trump-Vance Administration, employers that looked to maintain and enforce their non-compete agreements with employees may have found solace in the statements of certain FTC Commissioners who vocally opposed the FTC’s nationwide ban on non-compete agreements. However, recent statements by the FTC’s newly-appointed Chair, Andrew Ferguson, along with the…

Webinar: AI & Trade Secrets – Protecting Your Competitive Edge

By Jesse M. Coleman, Puya Partow-Navid & Yumna Khan on March 6, 2025

Posted in AI, Cybersecurity, Data Theft, Defend Trade Secrets Act, Employment Agreements, Intellectual Property, Trade Secrets, Unfair Competition

Futuristic 3D Render — Steve Johnson, Unsplash

2025 Trade Secrets Webinar Series

Tuesday, March 25, 2025
1:00 p.m. to 2:00 p.m. Eastern
12:00 p.m. to 1:00 p.m. Central
11:00 a.m. to 12:00 p.m. Mountain
10:00 a.m. to 11:00 a.m. Pacific

About the Program

Artificial intelligence (“AI”) is transforming industries at lightning speed—but with innovation comes risk. As AI reshapes how businesses operate, protecting proprietary AI-related…

Freedom to Compete, But at a Cost: Delaware Signals Forfeiture Clauses Could Be a Viable Non-Compete Alternative

By Gary Friedman, Cat Johns & Katherine Perrelli on January 21, 2025

Posted in Employment Agreements, Non-Competes, Restrictive Covenants, State Non-Compete Legislation Update

1737477885-13148-1048-lxb_photoj6n4rL_aSQklxb_photo- — cin ., Unsplash

The Delaware Supreme Court recently clarified that forfeiture-for-competition clauses under the Employee Choice Doctrine may be enforceable against a broader range of employees, including middle managers, not just senior-level executives or more highly compensated employees. These clauses require employees to forfeit certain benefits—such as stock options or severance pay—if they leave their employer and subsequently work for a competitor. Unlike…

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