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Battle Over/War Isn’t: Employer Considerations Now That FTC Non-Compete Ban Is Set Aside

A Texas court has set aside the Federal Trade Commission’s (FTC’s) Final Rule banning almost all non-compete clauses days before it was set to take effect on Sept. 4. Ryan LLC v. FTC, No. 3:24-CV-00986-E, 2024 U.S. Dist....more

Louisiana Limits Non-Compete Agreements for Physicians

Following the national trend toward prohibiting or limiting non-compete agreements, Louisiana Senate Bill 165 limits the length and geographical scope of non-compete agreements for both specialty and primary care physicians....more

Pennsylvania Bans Most Non-Compete Agreements for Healthcare Practitioners

Pennsylvania Governor Josh Shapiro has signed the “Fair Contracting for Health Care Practitioners Act” (House Bill 1633), which restricts the ability of employers and healthcare practitioners to enter into non-compete...more

Texas Court Preliminarily Enjoins FTC from Enforcing Its Non-Compete Ban, but Refuses (for Now) to Extend Order to All Employers

On July 3, 2024, as anticipated, U.S. District Judge Ada Brown of the U.S. District Court for the Northern District of Texas granted Plaintiffs’ and Plaintiff-Intervenors’ motion to stay and preliminarily enjoin the effective...more

Rhode Island Prohibits Use of Non-Competition Agreements With Nurses; Governor Vetoes Broader Ban

Rhode Island Governor Dan McKee signed a new law (R.I. Gen. Laws § 5-34-50) that prohibits the enforcement of non-competition agreements with advanced practice registered nurses (APRNs) in the state on June 17, 2024....more

Maryland Bans Non-Compete Agreements for Certain Healthcare Professionals

Maryland is following a nationwide trend restricting non-competition agreements for medical professionals. Maryland House Bill (HB) 1388 voids all non-compete and conflict of interest provisions in employment contracts for...more

Federal Trade Commission’s Sweeping Final Rule to Ban Non-Competes: What You Need to Know

On April 23, 2024, the Federal Trade Commission (FTC) issued its final rule prohibiting all non-compete agreements for all employees at all levels, with only extremely limited exceptions. The FTC’s much-anticipated action...more

Maine Governor Vetoes Restrictions on Non-Competition Agreements

Maine Governor Janet Mills has vetoed legislation that would have severely restricted the contexts in which Maine employers could use and enforce non-compete agreements. The bill, LD 1496, would have significantly hampered...more

Delaware Supreme Court Upholds Forfeiture-for-Competition Provision in Limited Partnership Agreement

Stemming a tide of Delaware decisions closely scrutinizing and refusing to enforce non-compete agreements, Delaware’s Supreme Court held that forfeiture-for-competition provisions arising out of a Delaware limited partnership...more

Reminder to Treat Your Valentine and Provide Notice to Employees of Non-Competes by February 14, 2024

In October 2023, California’s Governor signed Assembly Bill (AB) 1076 which added the new Business & Professions Code §16600.1, making it unlawful to impose non-compete clauses on employees – which contractual restrictions...more

A Step Too Far? Governor Hochul Vetoes New York Non-Compete Ban

New York Governor Kathy Hochul vetoed Senate Bill S3100A, a bill passed by both houses of the legislature in June, that would prohibit all non-compete agreements. This is a significant and interesting end to a year of...more

New California Law Makes Non-Compete Agreements Unlawful, Not Just Void

California’s Governor signed Assembly Bill (AB) 1076 on October 13, 2023, which adds new Business & Professions Code §16600.1, making it unlawful to impose non-compete clauses on employees – which contractual restrictions...more

New York Enacts Law Limiting Employee Assignment of Inventions

On September 15, 2023, New York Governor Kathy Hochul signed into law a new section of the New York Labor Law limiting the assignment of inventions by employees to their employers. Specifically, Section 203-f of the Labor Law...more

California Enacts Legislation to Support State’s Prohibitions on Employee Restrictive Covenants

On September 1, 2023, Governor Newsom signed Senate Bill (SB) 699, which buttresses current state law that voids contracts that restrain an employee from engaging in a lawful profession, trade, or business of any kind....more

New York Non-Compete Ban Goes to Governor

The New York State legislature has passed a bill banning all non-compete agreements for all workers, regardless of their salary level or job function. The bill now goes to Governor Kathy Hochul. New Labor Law Section 191-d,...more

NLRB General Counsel Asserts Non-Competes Violate the National Labor Relations Act

National Labor Relations Board (NLRB) General Counsel (GC) Jennifer Abruzzo’s efforts to alter the labor and employment landscape continue. The GC’s latest controversial enforcement memorandum (GC Memo 23-08) asserts that...more

Against the Evidence: How the FTC Cast Aside the Input of Experts at Its Own Non-Compete Workshop

The Federal Trade Commission (FTC) has proposed a paradigm-breaking rule that would ban essentially all non-compete agreements. If enacted, this rule would purport to override tens of millions of contracts in every sector of...more

Bipartisan Bill to Ban Most Non-Compete Agreements Reintroduced in U.S. Senate

A bipartisan group of U.S. Senators has reintroduced a bill, dubbed the “Workforce Mobility Act of 2023,” that would largely ban the use of employer non-compete agreements nationwide as a matter of federal law. This follows...more

A Deeper Dive Into FTC’s Proposed Non-Compete Rule

The Federal Trade Commission (FTC) proposed a new rule that, if made final, would (at least on its face) effectively prohibit non-compete agreements other than in very limited circumstances....more

Federal Trade Commission Proposes Broad Ban on Use of Non-Compete Covenants

The Federal Trade Commission (FTC) has issued a Notice of Proposed Rulemaking to broadly ban the use of non-compete covenants throughout the country. The proposed rule, which would supersede all contrary state laws, is...more

Biden Signs Speak Out Act, Barring Predispute NDAs, Nondisparagement Clauses for Sexual Assault, Harassment Claims

“I just signed the Speak Out Act, a bill that’ll enable survivors to speak out about workplace assault and harassment and increase access to justice,” President Joe Biden wrote on Twitter on December 7, 2022....more

Second Circuit Revives ‘Uniqueness’ as Basis for Enforcing Non-Compete

Breathing new life into “uniqueness” (of an employee’s services) as a legitimate business interest supporting enforcement of non-competition covenants under New York law, the U.S. Court of Appeals for the Second Circuit...more

Reaction and Response to the FTC & DOJ Workshop on Labor Market Competition

The Federal Trade Commission (FTC) and the Department of Justice (DOJ) hosted a virtual workshop on December 6-7, 2021, bringing together agency representatives, lawyers, economists, academics, and other experts to discuss...more

Why We Signed A Joint Letter Urging Caution In Non-Compete Regulation

Earlier this month, President Joseph Biden issued an Executive Order encouraging the Federal Trade Commission (FTC) to “curtail the unfair use of non-compete clauses and other clauses or agreements that may unfairly limit...more

Takeaways From President Biden’s Executive Order On Non-Competes

In the latest step toward federal regulation of non-compete agreements, President Joe Biden has issued a wide-ranging Executive Order that, among many other competition-focused objectives, encourages the Federal Trade...more

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