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Stoel Rives LLP

Navigating the Changing Landscape of Non-Compete Agreements: What Employers Need to Know

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The recent federal court ruling striking down the Federal Trade Commission’s (FTC) rule banning non-compete agreements has left many employers breathing a sigh of relief. However, this does not mean that non-compete...more

Sheppard Mullin Richter & Hampton LLP

California Court of Appeal Rules That Partial Sale of Business Can Bind Seller-Owner to a Noncompetition Agreement

In Samuelian v. Life Generations Healthcare, LLC, — Cal. App. 5th —, 2024 WL 3878448 (Cal. App. Aug. 20, 2024), the California Court of Appeal answered two long outstanding questions of California law concerning the...more

FordHarrison

Federal District Court Blocks FTC's Noncompete Rule

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Real World Impact: Making good on her promise to make a ruling on the FTC Noncompete Rule on or before August 30, 2024, United States District Judge Ada Brown granted a motion for summary judgment that sets aside the FTC...more

Fisher Phillips

Two Recent Federal Court Decisions Conflict with Exception to FTC Non-Compete Ban: Your 3 Steps for Litigating Accrued Non-Compete...

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Even though the FTC’s impending rule that will ban most non-competition agreements specifically carves out claims for violations that accrue before the rule goes into effect – an exception that many federal courts have...more

Morgan Lewis

Federal Trade Commission Noncompete Clause Rule Litigation Update

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The Federal Trade Commission on April 23 approved a Final Rule banning almost all worker noncompete clauses (noncompete rule). Absent a court entering a nationwide injunction or vacating the rule, it is set to go into effect...more

Ballard Spahr LLP

CFPB: Confidentiality Agreements Can’t Deter Whistleblowers from Reporting Alleged Violations

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The CFPB warned on July 24, 2024,  that confidentiality agreements that employees of a company are required to sign likely violate federal law if those agreements imply that employees could face retaliation from their...more

Tannenbaum Helpern Syracuse & Hirschtritt LLP

The Federal Trade Commission’s Noncompete Rule – Dead or Alive?

On May 7, 2024, the Federal Trade Commission (“FTC”) published its final rule (the “Rule”) broadly banning most noncompete provisions in employment-related agreements and preventing employers from enforcing them. The Rule...more

McDermott Will & Emery

FTC Final Noncompete Rule: Game Plan Checklist

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With the Federal Trade Commission’s Final Rule that would ban noncompetes nationwide set to go into effect on September 4, 2024, assuming pending litigation doesn’t cause any delays, employers should begin planning now to...more

Blank Rome LLP

FTC Loses Round 1, but Its Non-Compete Ban Is Still Standing and Creating Uncertainty

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The United States District Court for the Northern District of Texas last week issued an order and opinion granting a preliminary injunction staying the effective date for enforcement of the Federal Trade Commission’s (“FTC”)...more

Skadden, Arps, Slate, Meagher & Flom LLP

FAQs About the FTC’s Broad New Ban on Noncompetes

When the Federal Trade Commission (FTC) issued its long-awaited final rule banning virtually all noncompete clauses between workers and employers, it also published 500-plus pages of commentary....more

Seyfarth Shaw LLP

The FTC’s “Good Faith” Exception to the Non-Compete Ban: Pending Legal Challenges Are Not a Basis for Non-Compliance

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The FTC’s recently issued Final Rule banning non-competes for most workers prohibits an employer from (1) threatening to enforce a non-compete against a worker, (2) advising the worker that, due to a non-compete, they should...more

Seyfarth Shaw LLP

Colorado Amends Non-Compete Law To Address Potential Abuses of Training Repayment Agreement Provisions (TRAPS)

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On May 31, 2024, the Governor of Colorado signed House Bill 24-1324, titled “Attorney General Restrictive Employment Agreements,” putting into place a law to toughen protections for employees who are subject to abusive...more

Fisher Phillips

Washington Just Turned Many Non-Solicitation Agreements into Illegal Non-Competes: Tips on How You Can Still Protect Your Business

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Washington state law just changed in a way that might have made your company’s non-solicitation agreements unenforceable and illegal. Recent amendments to the state non-compete statute took effect on June 6 and significantly...more

Littler

New York City Bans Contractual Provisions Shortening Period of Time to File Complaints or Civil Actions Relating to...

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Effective May 11, 2024, New York City now prohibits employers from entering into any type of agreement that shortens the statutory period by which an employee may file an administrative claim or complaint, or civil action,...more

FordHarrison

Noncompete News: Will New York City's Noncompete Ban Beat the FTC Final Rule to the Punch?

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As we recently reported, the Federal Trade Commission (FTC) issued its long-awaited final rule on April 23, 2024, banning virtually all noncompetition agreements between employers and workers. Lawsuits challenging the final...more

Carlton Fields

Court Direction on FTC’s Noncompete Ban Expected This Summer

Carlton Fields on

The U.S. District Court for the Eastern District of Texas has issued an aggressive scheduling order that “should allow prompt resolution of” one of the initial challenges to the FTC’s noncompete ban “with sufficient time,...more

Seyfarth Shaw LLP

Analysis of FTC Non-Compete Ban Legal Challenges: Does the Ban Pass Constitutional Muster? (And Other Issues)

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On April 23, 2024, the Federal Trade Commission (FTC) voted in a 3 to 2 decision along party lines to adopt its Final Non-Compete Clause Rule (“Noncompete Rule”) banning post-employment non-compete clauses between employers...more

Orrick, Herrington & Sutcliffe LLP

Life After the FTC Non-Compete Ban: What Companies Should Know

In a novel and sweeping act of substantive rulemaking, the U.S. Federal Trade Commission (FTC) determined that non-compete agreements between employers and workers constitute an “unfair method of competition” prohibited under...more

Littler

Crash Course in U.S. Employment Law: How a Multinational Based Outside the United States Can Avoid Big Mistakes Managing a U.S....

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Every country’s own legal system is of course unique. Local laws vary significantly even between next-door neighbors―French law differs significantly from German, Venezuelan law is unlike Colombian, and Thailand’s laws are...more

BakerHostetler

Employers Beware: Broad Confidentiality and Severance Clauses May Violate Whistleblower Protection Laws

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Employers should check their confidentiality and severance agreements for a common oversight that, for some, is becoming a costly error. Recent enforcement activity by the Securities and Exchange Commission (SEC) of Rule...more

Faegre Drinker Biddle & Reath LLP

Top 10 Noncompete Developments of 2023

2023 was an eventful year for those following state and federal noncompete law developments. Federal agencies, state legislatures and courts continued to take steps to narrow the circumstances under which noncompetition...more

Littler

Global Non-Compete Reform – At a Glance: December 2023

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The US is not the only country currently debating reform to the law on non-competes. Notably the UK Government has announced legislation which would limit the duration of non-competes to a period of 3 months after the...more

Littler

Is a Bonus Clawback Provision a Restraint of Trade in the UK?

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In a reassuring decision for employers, the UK High Court has confirmed that an employer’s use of a contractual provision to claw back an employee’s bonus was lawful. The ruling in Steel v Spencer Road LLP provides helpful...more

Seyfarth Shaw LLP

New York Governor Hochul Rejects Wholesale Ban on Non-Compete Agreements

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On November 30, 2023, Governor Kathy Hochul answered the long-awaited question of whether New York would join California, North Dakota, Oklahoma and, most recently Minnesota, as a state banning the use of non-compete...more

Epstein Becker & Green

Preemption Questions Continue as FTC and NLRB Fight Restrictive Covenants

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As federal administrative agencies wade further into rulemaking and adjudicative efforts to outlaw noncompetes and restrictive covenants, defendants are beginning to raise preemption arguments in response to state court...more

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