News & Analysis as of

Restrictive Covenants Unenforceable Contract Terms

Tucker Arensberg, P.C.

An Update on the Uncertain Future of the FTC’s Non-Compete Rule, Plus Pennsylvania Enacts New Non-Compete Law for Healthcare...

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Since it was first published in April, the fate of the Federal Trade Commission’s (FTC) final non-compete rule has been, to put it mildly, less than certain. Now, about a month before the rule is scheduled to take effect, the...more

Lathrop GPM

FTC Approves Final Rule, Would Ban Most Employment Non-compete Agreements

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The Federal Trade Commission (“FTC”) voted and approved the issuance of a final rule, the Non-Compete Clause Rule, that, if it goes into effect, will make future employment non-compete agreements unenforceable and will...more

Tucker Arensberg, P.C.

FTC Votes to Ban Non-Compete Agreements

Tucker Arensberg, P.C. on

In a Special Open Commission Meeting, the Federal Trade Commission voted to approve the final rule to ban non-compete agreements for for-profit businesses, the effective date of such ban being in 120-days....more

Epstein Becker & Green

Red Pencil, Blue Pencil, or Something In Between? Ohio Court of Appeals Declines to Modify Overbroad Non-Competition Agreement

Epstein Becker & Green on

Ohio has long recognized the enforceability of non-compete agreements. Broadly speaking, a court can do one of three things with an unenforceable non-compete agreement: (1) the court can apply the “red pencil” doctrine and...more

Parker Poe Adams & Bernstein LLP

New California Law Requires Notice to Employees About Void Noncompetes

Most employers know that California has for decades prevented enforcement of employee non-competition and customer non-solicitation agreements. Some companies with California operations modify their agreements with employees...more

Holland & Knight LLP

Florida Legislature Proposes Ban on Physician Noncompete Agreements

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The Florida Legislature is currently considering two bills that, if enacted in their current form, would significantly reduce (and potentially eliminate altogether) the enforceability of noncompete agreements against...more

Littler

Delaware Supreme Court Upholds Forfeiture for Competition Provisions, Holding Departed Partners Bargained Away Their Right to Have...

Littler on

On January 29, 2024, the Delaware Supreme Court unanimously reversed a major Delaware Chancery Court decision that had analyzed the “forfeiture for competition” provisions in a limited partnership agreement using a...more

Holland & Knight LLP

California's New Nationwide Focus on Noncompetition Agreements

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For decades, California has taken arguably the most pro-employee-mobility position on noncompetition and non-solicitation agreements in the country – generally, post-employment noncompetition and non-solicitation agreements...more

Fisher Phillips

Georgia Employers Must Act Now as Recent Court Decision Potentially Invalidates Most Employee Non-Solicitation Covenants

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The Georgia Court of Appeals just made it significantly more difficult for employers to enforce employee non-solicitation provisions, which might require you to take immediate action to protect your company’s interests in...more

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

Louisiana Court Rules Restrictive Covenant Is Unenforceable and Can’t Be Saved by Reformation

Louisiana regulates noncompete agreements by statute. The statute declares that a noncompete is invalid unless the agreement complies with at least one of several exceptions based on the type of relationship. ...more

Sands Anderson PC

Federal Trade Commission Extends Public Comment Period for Proposed Rule Banning Employee Non-Competition Clauses

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Earlier this month, the Federal Trade Commission (FTC) voted 4-0 to extend its March 20th deadline for public comments on its controversial proposed rule to ban employee non-competition clauses (non-competes). The Commission...more

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

California Bill Would Impose Penalties on Employers and Attorneys for Attempting to Enforce Restrictive Covenants

In February 2023, new legislation was proposed in the California State Assembly that, if adopted and signed into law by Governor Gavin Newsom, could have a significant impact on employers and their attorneys providing advice...more

Kaufman & Canoles

FTC Looks to Ban Non-Competes, But Don’t Panic

Kaufman & Canoles on

The Federal Trade Commission (FTC) rang in 2023 by zeroing in on a new target: non-competes. On January 5, the FTC announced a new proposed rule banning the use of non-compete provisions in agreements with individuals....more

Dorsey & Whitney LLP

FTC Takes First Step to Make Good on Promise to Curtail Non-Compete Agreements

Dorsey & Whitney LLP on

On January 5, 2023 the Federal Trade Commission (“FTC”) proposed a rule to ban most non-compete agreements (“non-competes”) for American workers. The text of the proposed rule is broad: provisions that prevent workers from...more

Nutter McClennen & Fish LLP

FTC Proposes New Rule Banning Non-Compete Agreements

On January 5, 2023, the Federal Trade Commission (“FTC”) proposed a new rule which would effectively ban all non-compete agreements between employers and “workers” (defined under the rule to include employees, independent...more

Holland & Knight LLP

FTC Moves to Ban Non-Competes: What Employers Need to Know Now

Holland & Knight LLP on

The Federal Trade Commission (FTC) proposed a rule on Jan. 5, 2023, prohibiting non-competition clauses ("non-competes") in employment agreements. For purposes of the rule, non-compete provisions include explicit and de facto...more

Goodwin

FTC Proposes a Sweeping Rule That Would Ban Nearly All US Noncompete Agreements

Goodwin on

On January 5, 2023, the United States Federal Trade Commission (“FTC”) proposed a new rule (the “Proposed Rule”) that — if implemented — could dramatically restrict the use of non-compete agreements throughout the United...more

Benesch

FTC Strikes Down Non-Competition Agreements and Proposes Ban on Non-Competition Agreements

Benesch on

The Federal Trade Commission’s (“FTC”) threats of “cracking down” on non-competition agreements transformed into actual action with two dramatic moves this week. First, on January 4, the FTC ordered three companies,...more

Obermayer Rebmann Maxwell & Hippel LLP

Federal Trade Commission Proposes a Nationwide Ban on Non-Compete Agreements

​​​​​​​A huge change could be coming to the enforceability of non-compete agreements—and it might be very bad news for employers who rely on such agreements to protect their businesses. On January 5, 2023, the Federal Trade...more

Womble Bond Dickinson

FTC Proposes to Ban Employers From Imposing Non-Compete Agreements on Their Workers

Womble Bond Dickinson on

Yesterday, the Federal Trade Commission (“FTC”) proposed a far-reaching rule that, if adopted, would ban employers from imposing non-compete agreements on their workers. A non-compete clause is a contractual term between an...more

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

Louisiana Restrictive Covenant Signed by C-Suite Employee After Termination Is Unenforceable, State Appeals Court Holds

In Louisiana, restrictive covenants—known locally as “no competes”—are unenforceable by statutory default. The applicable statute declares, “Every contract or agreement, or provision thereof, by which anyone is restrained...more

Saiber LLC

CPAs Beware: Proposed Legislation Would Impact Enforceability of Non-Compete and Non-Solicit Agreements

Saiber LLC on

For CPAs, restrictive covenants — in the form of non-competition and non-solicitation agreements — are part of life. Most firms, and most CPAs, understand that these restrictive covenants are enforceable to varying degrees....more

Robinson & Cole LLP

Buyer Beware: Delaware Court of Chancery Declines to Blue-Pencil Restrictive Covenant in M&A Transaction

Robinson & Cole LLP on

On October 6, 2022, in Kodiak Building Partners, LLC v. Philip D. Adams, C.A. No. 2022-0311-MTZ (Oct. 6, 2022), the Delaware Court of Chancery found that a restrictive covenant entered into in connection with an asset...more

Venable LLP

The Risks of Noncompetition Agreements for Remote Employees

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More than two years into the pandemic, most employers are familiar with many of the challenges raised by engaging remote employees. However, one often overlooked issue is whether noncompetition agreements vetted for in-state...more

FordHarrison

Non-Compete News: Georgia Court Holds Non-compete and Non-solicit of Employee Provisions With Missing Territory Unenforceable and...

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Earlier this year, in Steuer v. Tomaras, et al., Georgia’s Statewide Business Court again refused to modify certain restrictive covenants that were missing a territory. Dr. Steuer, a former partner of the defendant doctors,...more

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