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Cross-Border Employment and Forum Selection Clauses

By Philip M. Berkowitz

Multinational employers often negotiate employment agreements and restrictive covenants with their key employees that prohibit unfair competition across borders. To prevent inconsistent judgments and give the parties a firmer expectation regarding their rights, many employers negotiate choice-of-law and choice-of-forum provisions that select one jurisdiction's laws or forum over another.

The enforceability of these provisions in the United States was recently affirmed by a Southern District court in Martinez v. Bloomberg LP, No. 11 Civ. 7514, 2012 U.S. Dist. LEXIS 113227 (S.D.N.Y. Aug. 10, 2012). Martinez holds important lessons for multinational employers concerning the enforceability and limitations of these clauses.

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