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More States Narrow the Use of Restrictive Covenants: Updates from Virginia, Arkansas, and Wyoming

Continuing a nationwide trend, three states recently enacted new legislation further restricting the enforceability of non-compete provisions in employment agreements. Starting in July, these new regulations are set to take...more

Federal Trade Commission and U.S. Department of Justice Issue New “Antitrust Guidelines for Business Activities Affecting Workers”

The Federal Trade Commission (FTC) and U.S. Department of Justice (DOJ) recently issued updated guidelines regarding antitrust issues implicated by certain kinds of agreements impacting employees and labor markets. The new...more

First Circuit Says Massachusetts Non-Compete Agreement Enforceable in California Despite State’s Ban

Last month, in DraftKings Inc. v. Hermalyn, the First Circuit Court of Appeals issued a decision concerning the application of California’s non-compete ban to agreements formed outside the state. Broadly, the decision...more

Texas Court Invalidates FTC Ban on Non-Compete Agreements

By now, employers across the country are aware of the Federal Trade Commission’s (“FTC”) pending rule banning the vast majority of non-competition agreements on a national level (the “Rule”). We have been tracking the Rule...more

The Eastern District of Pennsylvania Declines to Enjoin Application of the FTC’s Non-Compete Rule

On Tuesday, July 23, 2024, Eastern District of Pennsylvania Judge Kelley Brisbon Hodge declined to enjoin application of the FTC’s administrative rule banning the majority of non-competes in the country (the “Rule”) when she...more

NLRB Decision Finds Overly Broad Non-competition and Non-solicitation Clauses Violate NLRA

On June 13, 2024, an Administrative Law Judge (ALJ) with the National Labor Relations Board (NLRB) issued a decision that further muddies the landscape of restrictive covenant law. In J.O. Mory Inc., an ALJ held that overly...more

New York Set to Ban Non-Competes

New York is on the brink of joining the growing list of states and federal agencies that disfavor or outright ban non-compete agreements. On June 20, 2023, the New York legislature passed a bill that would prohibit employers...more

Unraveling the New (Major) Illinois Restrictive Covenant Law

On May 31, 2021, both Houses of the Illinois legislature unanimously passed legislation that, if signed by Governor Pritzker, will overhaul the enforceability of restrictive covenants in Illinois. The legislation1 amends the...more

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