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The FTC’s Rule Banning Non-Compete Agreements | What You Need to Know
Recent federal and state regulations have restricted employers' use of noncompete agreements, which in part are designed to protect trade secrets. The U.S. Federal Trade Commission's final rule, which broadly prohibits the...more
Restrictive covenants with the sole aim of preventing competition will not be upheld by Hong Kong courts. In cases where there is a legitimate interest to be protected, restrictive covenants must be reasonable and not go...more
Non-compete provisions have long been viewed by employers as reasonable and appropriate velvet handcuffs on departing employees and as an unfair burden on competition by the departing employees. The purpose of non-compete...more
On April 23, the Federal Trade Commission issued its final rule banning non-compete agreements nationwide, with the aim of “protecting the fundamental freedom of workers to change jobs, increasing innovation, and fostering...more
On April 23, 2024, the Federal Trade Commission (FTC) by a vote of 3-2 approved and issued its final rule that effectively bans employers’ use of all non-compete agreements (with very limited exceptions). The final rule is...more
Welcome to our Q1 Trade Secrets and Restrictive Covenant Report. As you will note from reading the report, the first quarter of 2024 continues the trend of state legislatures exploring the possibility of new restrictive...more
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
Introduction - As we enter a new era of business landscape dynamics, Seyfarth Shaw is pleased to present the latest edition of our annual cornerstone publication. This comprehensive 50-State Non-Compete Desktop Reference,...more
On October 12, 2023, the Wisconsin legislature introduced Assembly Bill 481, which proposes the ban of employee non-compete agreements in the Badger State. Currently, employee non-compete agreements in Wisconsin are allowed...more
This week, we bring you our special Spilling Secrets podcast series on the future of non-compete and trade secrets law: California has some of the strongest regulations on restrictive covenants. How can employers in the...more
In the United States, as many as one in five employees (some 30 million individuals) are currently subject to some form of “non-compete” agreement with their employer. Although the details can vary widely, such agreements...more
Two months ago, the National Labor Relations Board (the Board) changed the rules for confidentiality and non-disparagement clauses in severance agreements. In McLaren Macomb, 372 NLRB No. 58 (2023), which we previously wrote...more
Venture capitalists refer to “secret sauce” as the differentiator that gives one startup the edge over competitors. The secret sauce, properly protected, is a trade secret. However, employee turnover can threaten the secret...more
On January 5, 2023, the Federal Trade Commission (FTC) proposed a radical and unprecedented rule that would prohibit employers from entering noncompete clauses with their workers. This follows the initiation of a landmark FTC...more
It is no hidden secret that many employers use various restrictive covenants to protect their trade secrets, confidential information, goodwill, and customer relationships. For example, employers often use non-compete...more
Compared to Q1 and Q2 of 2022, Q3 was relatively slow with respect to trade secret legislation and significant restrictive covenant awards and/or case law. Still, and as described below, two new statutes require a company’s...more
...Why should you be cautious about having your employees sign non-compete agreements or other restrictive covenants, as we lawyers call them? After all, non-compete agreements have become favored as a means of protecting...more
Much has been written about Senate Bill 169 (S.B. 169), which established new limits on noncompetition agreements in Oregon as of 1 January 2022. Less attention has been paid to what employers can still do to protect their...more
In Tanium v. Yago et al., the U.S. District Court for the Northern District of Georgia recently reminded us of a few things: (1) customer contact information can constitute a trade secret; (2) the Georgia Restrictive Covenant...more
Employment agreements with restrictive covenants typically contain both a forum selection clause, which determines the forum where a dispute must be heard, and a choice of law clause, which determines the law that applies to...more
California’s statutory ban on post-employment covenants, which are enforceable in most other states, has bedeviled employers trying to protect confidential information and trade secrets. The state’s Business and Professions...more
The spread of the coronavirus disease 2019 (COVID-19) has led to changes regarding many legal issues. Despite the changes, companies still need to protect confidential information, goodwill, customer relationships, and...more
In Seyfarth’s first installment in its 2020 Trade Secrets Webinar Series, Seyfarth attorneys Robert Milligan, Jesse Coleman, and Joshua Salinas reviewed the noteworthy legislation, cases, and other legal developments from...more
For the first time in 15 years, the Supreme Judicial Court (“SJC”), Massachusetts’ highest court, issued a decision analyzing the enforceability of non-solicitation covenants, the distinction between such covenants in the...more
After a busy year for non-compete regulation at the state level, the Federal Trade Commission (FTC) held a public workshop last Thursday in Washington D.C. to examine the legal basis and economic support for a contemplated...more