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What's the Tea in L&E? Alert: Non-Compete Agreements Largely Banned by New FTC Rule
On August 20, 2024, the United States District Court for the Northern District of Texas (Dallas Division) struck down the Federal Trade Commission’s (FTC) non-compete rule, 16 CFR § 910.1-6, that was set to take effect...more
On July 17, Pennsylvania Governor Josh Shapiro signed House Bill (HB) 1633, the Fair Contracting for Health Care Practitioners Act (the Act) into law. At a high level, the Act: (1) limits the enforceability of noncompetes...more
Pennsylvania’s new Fair Contracting for Health Care Practitioners Act limits the use of certain restrictive covenants between employers and health care workers and imposes heightened patient notice obligations on applicable...more
On July 17, 2024, Governor Josh Shapiro approved Pennsylvania’s first statute imposing limitations on the use of noncompetes in the state....more
The Federal Trade Commission’s (FTC) Final Rule banning noncompete covenants for workers is likely to present particular challenges for employers in the health care industry. Because of the structural and organizational...more
Are nonprofit health care entities exempt from the Federal Trade Commission’s (FTC) Final Rule banning non-competes in worker agreements? The answer is not cut and dry. While the FTC’s authority generally stops at the doors...more
The Federal Trade Commission (the “FTC”) issued a final rule (the “Rule”) that prohibits existing and future noncompetition provisions for all workers, except that pre-Effective Date (defined below) noncompetition provisions...more
The Federal Trade Commission recently approved a final rule prohibiting companies nationwide from enforcing new and existing noncompete agreements on anyone other than senior executives. Unless the effective date is...more
The Federal Trade Commission recently propounded a rule regarding non-competes. This is complicated, as is demonstrated by the extensive FTC comments that are a hundredfold longer than the regulation itself. Of significant...more
On April 23, 2024, the Federal Trade Commission (“FTC”) issued its Final Rule banning employers from imposing post-employment noncompete requirements on their workers (the “Final Rule”). The FTC has indicated that it will...more
On April 23, 2024, the Federal Trade Commission (“FTC”) conducted a special Open Commission Meeting to vote on a Final Rule (the “Rule”) banning most non-compete clauses as an “unfair method of competition.” By a vote of 3-2,...more
On April 25, 2024, Governor Wes Moore signed into law new legislation prohibiting non-compete and conflict-of-interest clauses for certain veterinary and health care professionals in the state of Maryland. The enactment of...more
The FTC unveiled its long-awaited final rule banning most non-compete agreements during a live broadcast of a Commission meeting on April 23, 2024. The proposed rule, which was first announced in January 2023, underwent an...more
In the past few months, California Governor Newsom has signed numerous new employment laws affecting California employers of all sizes. Below is a summary of some of the laws going into effect in 2024....more
Governor Newsom signed into law a plethora of bills that significantly expand the rights of employees in California, although notably vetoing a bill that would have prohibited caste discrimination. Most of the new laws take...more
Question: Are covenants not to compete and liquidated damages provisions in employment agreements still enforceable? I have seen news reports about the Federal Trade Commission and National Labor Relations Board being...more
At the close of the 2023 session, the Connecticut legislature passed Senate Bill 9, “An Act Concerning Health and Wellness for Connecticut Residents.” Buried in this legislation are amendments to the state’s physician...more
In this episode of "Counsel That Cares," antitrust attorney David Kully and labor and employment attorney Mark Peters take a deep dive into the latest updates regarding non-solicitation and non-compete agreements in the...more
As various states and federal agencies seek to prohibit or limit the use of non-competes, Connecticut joined the trend. Connecticut’s new legislation, SB 9, expands restrictions on the enforceability of physician non-competes...more
On June 5, 2023, the Connecticut Legislature passed Public Act No. 23-97, “An Act Concerning Health and Wellness for Connecticut Residents” (“the Act”). Sections 13 through 15 of the Act make important changes to Connecticut...more
Here are curated AG and federal regulatory news stories highlighting key areas in which state and federal regulators’ decisions are having an impact across the US: •FTC Targets Optometrists, Ophthalmologists Suspected of...more
As proposed, the Federal Trade Commission’s proposed rule to prohibit employers from using non-compete clauses in employment agreements would have sweeping impact on health care practices and hospitals employing restrictive...more
On January 5, 2023, the Federal Trade Commission (FTC) issued a Notice of Proposed Rulemaking (Proposed Rule) regarding non-compete agreements. The Proposed Rule would prohibit non-compete clauses in labor contracts for most...more
Many Colorado physician employment agreements and equity agreements require physicians to pay liquidated damages if the physician competes with his/her former employer after leaving the organization. ...more
We’ve written a lot this summer about the Massachusetts legislature’s latest failed attempt at non-compete reform. Two other states in New England, however, are able to claim accomplishments in that regard. Specifically,...more