News & Analysis as of

Selling a Business Non-Compete Agreements

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

Haynsworth Sinkler Boyd, P.A.

To Non-Compete Agreement or to Not? That is the Question

The Federal Trade Commission's Non-Compete Clause Rule proposed in January 2023 that we have previously written about becomes effective September 4, 2024, and invalidates most noncompetition agreements on or after the Rule's...more

Bowditch & Dewey

Top Considerations When Preparing to Sell a Company

Bowditch & Dewey on

Have you received an offer to buy your company? Congratulations! But there is work ahead. The first step is to understand the specific deal structure, be it an asset sale, equity sale or merger. The owners should also work...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

Allen Matkins

FTC Final Rule Banning Most Worker Noncompete Agreements

Allen Matkins on

The Federal Trade Commission (FTC) on April 23, 2024 issued its long-anticipated final rule generally banning noncompete agreements for workers (including employees and independent contractors) nationwide. What should...more

Morrison & Foerster LLP

Potential Exceptions Under FTC’s Non-Compete Ban

On April 24, 2024, the U.S. Federal Trade Commission (FTC) promulgated its final rule prohibiting non-competes for most workers in the United States (the “Final Rule”). The Final Rule raises several issues, including...more

Houston Harbaugh, P.C.

The Coming Rule & Battle over Non-Compete Agreements

The battle over non-compete agreements is gearing up. The Federal Trade Commission voted last week to adopt a Final Rule, as promised back in January 2023, that largely bans non-competes. Lawsuits are being filed to block it....more

Balch & Bingham LLP

Looking for Certainty: Protection From Competition Following the FTC’s Rule Banning Non-Compete Clauses

Balch & Bingham LLP on

On Tuesday, April 23, 2024, the Federal Trade Commission (“FTC”) approved a final Non-Compete Clause Rule (“Rule”) banning as unfair competition all non-compete provisions entered with workers on or after the effective date...more

Rivkin Radler LLP

FTC Issues New Rule to Abolish Non-Compete Agreements

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On Tuesday, April 23, 2024, the Federal Trade Commission (FTC), issued a final rule designed to promote competition and new business formation that, when effective, will impose a nationwide ban on non-compete agreements...more

Husch Blackwell LLP

FTC Votes to Issue Final Rule Banning Most Non-Compete Agreements Nationwide

Husch Blackwell LLP on

On April 23, 2024, the Federal Trade Commission (FTC) voted 3-2 to issue a final rule that would ban virtually all non-compete agreements for nearly all workers of for-profit employers. Commissioners Melissa Holyoak and...more

Morrison & Foerster LLP

FTC Issues Final Rule Banning Non-Competes

On April 23, 2024, the Federal Trade Commission (the “Commission”) voted to issue its final rule (the “Final Rule”) barring non-competes for most workers in the United States, with exceptions for non-competes entered into in...more

FordHarrison

The Eleventh Circuit Addresses Georgia Noncompete Statute in "Sale of Business" Context

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Prior to the enactment of the Georgia Restrictive Covenant Act (“RCA”), Georgia courts interpreted noncompete provisions entered into in the context of selling a business differently than they did between employers and...more

MoFo Employment Law Commentary (ELC)

Recent Non-Compete Trends: Courts Continue To Enforce Non-Competes While Politicians Seek To Narrow Them

The FTC’s Notice of Proposed Rulemaking of its Non-Compete Clause Rule, which would ban non-competes altogether if promulgated, opened 2023 with a bang. Whether it goes into effect, in what form, and whether the Rule will...more

Morrison & Foerster LLP

Trio of Delaware Cases Signal Stricter Review of Sale-of-Business Non-Competes

On March 16, 2023, the Delaware Chancery Court in Intertek Testing Services NA, Inc. v. Eastman found a sale-of-business non-compete was overbroad, given its worldwide geographic scope, and refused to modify it to make it...more

Payne & Fears

Key Considerations in the Purchase / Sale of a Partnership Interest

Payne & Fears on

Payne & Fears’ Business Litigation Group helps businesses and their owners with wide-ranging disputes. In our practice, we’ve noticed that in disputes among business partners there are common issues that often surface. ...more

Sheppard Mullin Richter & Hampton LLP

Missed Assignments: The Importance of Assignability Clauses in Restrictive Covenant Agreements

Imagine paying millions to acquire a company only to later discover the restrictive covenants in the employment agreements of high-level executives were unenforceable. That’s precisely what happened in Intertek Asset...more

Steptoe & Johnson PLLC

Don’t Forget Taxes When Negotiating Non-Competes

Steptoe & Johnson PLLC on

Exception to FTC Proposal Although the Federal Trade Commission (FTC) has proposed a ban on non-compete agreements, the proposal contains an exception in certain business acquisitions where the seller enters into a...more

Davies Ward Phillips & Vineberg LLP

Federal Trade Commission Proposes Rule to Ban Non-Compete Clauses

The United States Federal Trade Commission (FTC) recently issued a proposed rule that, if adopted, would broadly prohibit employers from entering into post-employment non-compete agreements with workers, and would also...more

Paul Hastings LLP

FTC Proposed Ban on Non-Competes Includes M&A Exception Comparable to California Law

Paul Hastings LLP on

On January 5, 2023, the Federal Trade Commission (“FTC”) announced a proposed regulation (the “Proposed Rule”) that would ban non-compete agreements imposed against workers by employers. The Proposed Rule includes a narrow...more

Lowenstein Sandler LLP

Restrictive Covenants in Connection With a Sale of a Business Cannot be Overbroad

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Business owners and transaction lawyers who view non-compete agreements as standard in connection with the sale of a business should be careful not to overreach in imposing restrictive covenants on sellers in purchase...more

Kelley Drye & Warren LLP

Dire Straits? The FTC’s Expanding Non-Compete Enforcement Seeks to Narrow Sale-of-Business Agreements

Back in July 2021, President Biden signed Executive Order 14036 directing the Federal Trade Commission (“FTC”) to “address agreements that may unduly limit workers’ ability to change jobs.” As a result, gallons of ink were...more

Fox Rothschild LLP

Florida Noncompete Law: Drafting Noncompete Agreements Under Florida Law

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Florida’s noncompete statute, Fla. Stat. 542.335, provides numerous protections to employers or business purchasers who are looking to safeguard a company’s goodwill, trademarks and the like. Still, it is important to not...more

Greenberg Glusker LLP

What They Don’t Tell You When You Sell Your Company

Greenberg Glusker LLP on

Selling your company for a huge profit sounds enticing. What could be wrong with getting a huge up-front payment at capital gain rates in lieu of years of future sweat for an uncertain return and ordinary income treatment?...more

Faegre Drinker Biddle & Reath LLP

Part 24 of “The Restricting Covenant” Series: Choice of Law and Covenants Not to Compete

There are many notable east coast-west coast rivalries. In sports (Celtics versus Lakers basketball), in leisure (Atlantic versus Pacific beaches), or in food (Shake Shack versus In-N-Out Burger), to name a few. With respect...more

FordHarrison

Non-Compete News: – Georgia Court Interprets Non-Compete Statute's "Sale-of-a-Business" Provision

FordHarrison on

Georgia’s Restrictive Covenants Act (O.C.G.A. § 13-8-50 et seq.) (“RCA”) governs Georgia non-compete agreements entered into after May 2011. Very few courts have interpreted the RCA since its inception. In Bearoff v. Craton,...more

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