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Discussions on Human Resources, Employment Law, Payroll and Internal Controls

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Follow the leader: The U.S. may soon follow Ontario to ban non-compete clauses

Ontario was the first province in Canada to ban non-compete agreements in the context of employment under the Employment Standards Act, 2000. Non-compete clauses are a hot topic once again as it seems our neighbours south of the border are also pursuing similar legislative restrictions on the use of non-compete agreements in the employment context.

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Old non-compete agreements are still valid in Ontario

The Working for Workers Act, 2021 (the “WWA”) passed into law on December 2, 2021. One of its more notable aspects was to ban the use of non-compete agreements in Ontario. Non-compete agreements restrict how workers may conduct themselves both during and after employment. Most importantly, they can prevent employees from working at competing businesses for long periods (often for several months or years) after the employee’s job has ended.

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Restrictive covenants and real estate: Can they survive recent case?

In a recent decision rendered in late November of 2018 by the Quebec Superior Court (under appeal), restraint of trade principles normally applicable in employment and sale of a business contexts were applied to restrictive use covenants in real estate (Complexe Commerciale de l'Ile inc . V . Provigo Distribution).

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Established in 1995, First Reference is the leading service provider of up to date, practical and authoritative HR, payroll and policy databases that are essential to ensure organizations meet their compliance and due diligence requirements.

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