The Advisors' Blog

Given recent legal developments, this perspective from Shearman & Sterling encourages companies to consider a wholesale review of existing forms, including:

– offer letters and employment agreements
– separation agreements
– restrictive covenant agreements (including proprietary information and confidentiality agreements)
– equity award agreements
– employee handbooks

Many companies were already taking a fresh look at some of these forms in light of 2023 enforcement actions focused on language that potentially stifles corporate whistleblowing, but the alert highlights a number of other developments that should be considered for updates. Those include:

– Restrictions, notification requirements, outright bans and other regulator attention on non-compete clauses and other restrictive covenants that could operate as non-competes
– Developments impacting confidentiality provisions, including NLRB decisions and changes in state law regarding non-disclosure and non-disparagement covenants
– Potential interest in expanding definitions of cause to include behaviors causing reputational harm
– State laws impacting social media policies
– Separation disclosure considerations and timing requirements for a valid release

If your forms haven’t been “refreshed” in a while, it sounds like it’s time to get them back in front of your employment lawyers!

– Meredith Ervine