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Federal Trade Commission Approves Final Rule Banning Most Noncompetes

On April 23, 2024, the Federal Trade Commission (“FTC”) voted 3-2 to issue a proposed final rule (“Final Rule”), which, absent a successful legal challenge, will ban most noncompete agreements in the United States. Despite...more

Federal Trade Commission Approves Rule Banning Most Noncompetes

Today the Federal Trade Commission voted 3-2 to approve a Final Rule that, absent a successful legal challenge, will ban most noncompete agreements in the United States beginning 120 days after publication in the Federal...more

New York and New Jersey Legislatures Introduce Bills That Seek to Regulate Artificial Intelligence (“AI”) Tools in Employment

Employers who rely on artificial intelligence driven tools for their recruiting and hiring processes may face new regulations in New York and New Jersey. In the past few weeks, three bills have been proposed (two in New...more

New York City Council Introduces Three New Bills Aimed at Non-Competes

Joining an emerging trend of legislative and regulatory hostility towards non-compete agreements, on February 28, 2024, the New York City Council introduced three new bills proposing restrictions on non-compete agreements in...more

Delaware Supreme Court Validates Forfeiture-For-Competition Provision in Unanimous Reversal of Chancery Court

In a win for businesses that rely on restrictive covenants to protect their assets and investments, on January 29, 2024, the Delaware Supreme Court unanimously reversed a Chancery Court decision that invalidated a...more

Judge Grants Workday, Inc.’s Motion to Dismiss in Groundbreaking AI Class Action Lawsuit Mobley v. Workday

In a recent development in Mobley vs. Workday, Inc., the novel class action lawsuit filed in the United States District Court for the Northern District of California alleging that Workday’s algorithm-based applicant screening...more

Governor Hochul Vetoes New York Non-Compete Ban

After months of speculation and intense lobbying, New York Governor Kathy Hochul vetoed a bill that would have imposed a near-total ban on employee non-competition agreements in New York State. Governor Hochul has long...more

New York’s Non-Compete Bill – Gov. Hochul Weighs In

In what we believe are her first public statements on the New York Legislature’s proposal to ban ostensibly all non-compete agreements in New York, Governor Hochul on Thursday, November 30 reportedly told a group of...more

California Expands FEHA Liability to Include “Institutional Agents” of Employers

California’s Fair Employment and Housing Act (FEHA) is already one of the most employee-friendly state civil rights laws in the country. Until now, it was not clear whether employees could sue not only their direct employers...more

Delaware Chancery Court Points Out “Poor Contract Drafting” in Recent Dismissal

On August 23, 2023, the Delaware Court of Chancery decided Frontline Technologies Parent LLC et al. v. Brian Murphy et al., a case which, in the Court’s view, “presents a textbook example of why parties should ensure their...more

8/30/2023  /  Appeals , Delaware

New York State Introduces Bill to Impose Restrictions on the Use of AI Tools in Employment Decisions

A bill introduced in the New York State Senate on August 4, 2023, would impose statewide requirements regulating tools that incorporate artificial intelligence to assist in employee monitoring and the employment...more

EEOC Inks First-Ever AI-Based Antidiscrimination Settlement

On August 9, the U.S. Equal Employment Opportunity Commission (“EEOC”) and iTutorGroup, Inc. filed a joint notice of settlement and consent decree announcing the settlement of a discrimination in hiring lawsuit. This...more

New York’s Non-Compete Bill: Cutting Through the Confusion

The potential New York ban on non-compete agreements, approved by the both houses of the state Legislature back in June, has generated a significant volume of press, commentary, and speculation—but it hasn’t yet been signed...more

Employment Issues in Generative AI

The second webinar in our series, “Employment Issues in Generative AI,” explored the evolving impact of generative AI (or “GAI”) on the workplace and how employers can work to ensure the ethical and responsible use of AI...more

FTC Orders 20-Year Non-Compete Ban for Anchor Glass

On June 2, 2023, the Federal Trade Commission (“FTC” or “the Commission”) finalized a Consent Order settling charges against Anchor Glass Container Corp. (“Anchor Glass”) for engaging in conduct which, according to the FTC’s...more

NYC’s Groundbreaking Automated Employment Decision Tools Law Takes Effect July 5

As previously reported, the New York City Automated Employment Decision Tools (“AEDT”) Law takes effect on July 5, 2023. The Law will impose certain requirements upon employers or employment agencies who use an AEDT to assist...more

Implications of and Open Questions Regarding the N.Y. State Legislature’s Passage of Bill Banning Non-Competes

On June 21, 2023, the New York State Assembly passed a sweeping bill (Bill No. S03100/A1278B — An Act to Amend the Labor Law, in Relation to Prohibiting Non-Compete Agreements and Certain Restrictive Covenants) that, if it...more

Update: New York State Senate Passes Another Bill With A Broad Ban on Non-Competes

We recently reported on New York Bill No. S03100, which, if enacted, would broadly prohibit non-competition agreements in New York. On the same day, June 7, 2023, the New York Senate also passed Bill No. S6748 (the “Bill”),...more

Know Your Limits: Understanding State-Imposed Restrictions on Noncompetes

An estimated 30 million workers in the United States, roughly 18 percent of the American workforce, are subject to a noncompete agreement, according to the US Treasury Department and Federal Trade Commission. Noncompete...more

EEOC Releases Technical Document on AI and Title VII

On Thursday May 18, 2023, the Equal Employment Opportunity Commission (“EEOC”) released a new technical assistance document titled Assessing Adverse Impact in Software, Algorithms, and Artificial Intelligence Used in...more

Federal Judge Reverse $105 Million Jury Verdict in Trade Secrets Case

Introduction: Earlier this year, we covered the notable trade secrets verdict in Versata Software Inc. v. Ford Motor Co., No. 2:15-cv-10628 (E.D. Mich. Oct. 26, 2022), in which Versata was awarded $105 million for breach...more

EEOC, FTC, and Other Federal Agencies Release Joint Statement on Confronting Bias and Discrimination in AI and Automated Systems

On April 25, 2023, officials from four federal agencies released a joint statement pledging to increase “enforcement efforts to protect the public from bias in automated systems and artificial intelligence” (“AI”). The...more

NTIA Seeks Public Comments on Potential Regulation of AI Systems

In response to the sudden proliferation of AI programs, like ChatGPT, on April 11, 2023, the National Telecommunications and Information Administration (NTIA) – an Executive branch agency responsible for advising the...more

NYC Set to Enforce Law to Regulate Use of Automated Hiring Tools Starting July 5

New York City will begin enforcing the New York City Automated Employment Decision Tools (“AEDT”) Law, on July 5, 2023, delaying the previously announced enforcement date of April 15. On April 6, 2023, after two sets of...more

Reminder – NYC Employers: “Automated Employment Decision Tools Law” Will Be Enforced Starting April 15

On Friday, September 23rd, the New York City Department of Consumer and Worker Protection (“DCWP”) issued a Notice of Public Hearing and Opportunity to Comment on Proposed Rules related to Local Law 144 (“the Law”), which...more

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