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Non-Compete Blog

Posts from February 2014.

Well-written employment agreements will often have both forum selection (which court is to have jurisdiction) and choice-of-law (which state’s law will be applied to interpreting and enforcing a contract) provisions, and earlier this month the Second Circuit clarified how federal courts should analyze forum selection clauses in agreements that also have choice-of-law language. This is a huge issue, particularly in the area of restrictive covenants as the enforceability of those covenants can vary greatly from state to state and even from court to court within those states. Federal law governs the enforceability of the forum selection clause, the court held, but the body of law identified in the choice-of-law clause governs how courts interpret the forum selection provision. Courts have not always articulated this distinction clearly, and the Second Circuit’s guidance should be helpful to lawyers analyzing their clients’ employment contracts.

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