News & Analysis as of

Non-Compete Agreements The National Labor Relations Act Employment Contract

Non-Compete Agreements are contracts, typically formed in employment or business purchase contexts, where one party agrees to refrain from engaging in a particular line of work or pursuing business within a... more +
Non-Compete Agreements are contracts, typically formed in employment or business purchase contexts, where one party agrees to refrain from engaging in a particular line of work or pursuing business within a certain industry or locale. The purpose of these agreements is to protect employers or business purchasers from competition stemming from former employees or former owners of a business. less -
Balch & Bingham LLP

Non-Compete Contracts: Legally Undead

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Contracts restraining competition by former employees and contractors have always faced enforcement headwinds, differing state-by-state in their strength and direction. California is most hostile; there, a statute purports to...more

Constangy, Brooks, Smith & Prophete, LLP

The FTC noncompete ban is dead. Here are five steps employers should take now.

You no doubt have heard that on August 20, a federal judge in the Northern District of Texas set aside the Rule issued by the Federal Trade Commission that sought to ban virtually all noncompetition agreements as unfair...more

McCarter & English, LLP

The FTC’s Non-Compete Rule “Set Aside:” What Next for Employers and Employees?

After a series of preliminary, narrowly decided, and conflicting court decisions concerning requests for preliminary injunctions (see August 20, 2024 Alert), a federal district court in Texas has now entirely set aside the...more

Amundsen Davis LLC

Is the FTC’s Ban on Non-Competes a Non-Issue?…Not Yet

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There is much uncertainty about the future of FTC's new rule (the “FTC Rule”) making most non-compete agreements unlawful and barring employers from enforcing past non-compete clauses against nearly all employees and...more

Fisher Phillips

Your Non-Compete and Trade Secrets To-Do List for August 2024

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Courts and lawmakers around the country are constantly refining the laws on non-competition, non-solicitation, and non-disclosure agreements, which means employers need to stay up to speed in order to prevent unfair...more

Seyfarth Shaw LLP

NLRB’s Non-Compete Power Grab – Can Employers Avoid NLRB’s Oversight?

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An administrative law judge (“ALJ”) of the National Labor Relations Board (“NLRB”) in J.O. Mory, Inc. recently required an employer to rescind certain restrictive covenants in its employment agreements. The decision is yet...more

Kilpatrick

NLRB ALJ Finds Post-Employment Non-Compete and Non-Solicit Provisions Unlawful

Kilpatrick on

Employers’ use of non-compete agreements have been subject to increasing scrutiny from federal agencies in the past year or so. More recently, the balance of discussion surrounding regulatory efforts to curtail the use of...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

NLRB Judge Finds Nonsolicitation, Noncompete Provisions in Employment Agreement Chilled Protected Activity

On June 13, 2024, an administrative law judge (ALJ) for the National Labor Relations Board (NLRB) ruled that overly broad noncompete and nonsolicitation provisions in an employment agreement violated an employee’s labor...more

Carlton Fields

Court Direction on FTC’s Noncompete Ban Expected This Summer

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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

ArentFox Schiff

2023 Trade Secrets End of Year Report

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2023 was a banner year for trade secrets, non-competes, and other restrictive covenants. Employee non-competes continued to garner attention at the federal agency level, drawing commentary and action from the Federal Trade...more

Parker Poe Adams & Bernstein LLP

NLRB Continues Assault on Noncompete Agreements

As we have previously covered in EmployNews, in June 2023, the general counsel for the National Labor Relations Board (NLRB) released a memo arguing that most noncompete agreements violate Section 7 of the National Labor...more

Seyfarth Shaw LLP

Is the NLRB’s New Stance on Restrictive Covenants Mostly Bark With a Little Bite?

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The National Labor Relations Board (“NLRB”) sent shockwaves through the employment landscape when General Counsel Jennifer Abruzzo took the position that the “proffer, maintenance, and enforcement” of restrictive covenants...more

Kilpatrick

A Comprehensive Update on Recent Federal and State Efforts to Limit the Use of Employee Non-Compete Agreements

Kilpatrick on

Federal and state efforts to limit or outright prohibit the use of employee non-compete agreements have gained considerable momentum in the past year. As Kilpatrick’s labor and employment team has written about previously,...more

Littler

Recent NLRB Activity is a Mixed Bag for Employers’ Use of Restrictive Covenants

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Two recent developments involving the National Labor Relations Board’s scrutiny of restrictive covenant agreements, per its general counsel’s Memorandum 23-08, have provided a mix of good and bad news for employers. On one...more

Miles & Stockbridge P.C.

NLRB’s General Counsel Says Employers Cannot Bar Outside Employment

The National Labor Relations Board (NLRB) is chipping away at employment agreements and other restrictive covenants one clause at a time. In a recent memorandum, the General Counsel said she believes restricting employees...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

Kohrman Jackson & Krantz LLP

NLRB Targets Non-Competes in Ohio

The National Labor Relations Board (NLRB) has been on a mission to curtail the use of non-compete and related restrictive agreements in employment contracts across the United States. The federal agency has continued its...more

Seward & Kissel LLP

Employment Litigation Roundup: October 2023

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October 2023: Public information can be a trade secret; Litigants get creative to contest non-competes; NJ addresses the enforceability of non-disparagements; Law firm DEI programs face legal challenges - Compilation of...more

Cooley LLP

How Does the Latest Crackdown on Noncompete Agreements Affect Employers?

Cooley LLP on

Noncompete agreements have come increasingly under attack at the federal and state level in 2023. In this alert, we review notable recent developments on the legality of continuing to use noncompete agreements in the...more

Epstein Becker & Green

#WorkforceWednesday: Non-Compete Agreements in 2023: What Employers Need to Know - Employment Law This Week® - Spilling Secrets...

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This week, we bring you our special Spilling Secrets podcast series on the future of non-compete and trade secrets law: Restrictions on non-competes have dominated the headlines this year. The Federal Trade Commission has...more

DarrowEverett LLP

Q3 Employment Law Updates: Enforcement Actions Bring Much for Employers to Consider

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The third quarter of 2023 has been pretty exciting as far as employment lawyers are concerned. Substantial regulations have been proposed and the pressure from federal agencies continues to rise. We will talk about some of...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

The Practical NLRB Advisor: Fall 2023

Ogletree Deakins’ Traditional Labor Relations Practice Group is pleased to announce the publication of the Fall 2023 issue of the Practical NLRB Advisor. In this issue of the Advisor, we cover three of those sharply divided...more

Fisher Phillips

We Know What the NLRB Did Last Summer: 7 Recent Labor Board Moves That Could Haunt You This Fall and Beyond

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As fall creeps up on us — and you trade your beach days and barbeques for hayrides and horror flicks — don’t forget about all the activity from the National Labor Relations Board (NLRB) this past summer that could cause...more

Seyfarth Shaw LLP

We’ve Got a Test Case: The NLRB Files its First Complaint Challenging the Validity of Restrictive Covenants

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The National Labor Relations Board moved from theory to practice in this administration’s battle against restrictive covenants. Recently, the Regional Director of Region 9 of the National Labor Relations Board filed a...more

Kerr Russell

Status Of Covenants Not To Compete And Liquidated Damages Provisions

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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

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