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FTC Requests Stay of Appeals to Challenges to FTC Non-Compete Rule Citing New Administration

On March 7, 2025, lawyers for the Federal Trade Commission (FTC) filed motions requesting a 120-day stay of the agency’s appeal of district court decisions in the Fifth Circuit and Eleventh Circuit, which had blocked the...more

Acting NLRB General Counsel Rescinds Biden-Era Policy Guidance on Non-Compete Agreements

On February 14, 2025, NLRB Acting General Counsel William B. Cowan rescinded a number of active General Counsel Memoranda citing an increasing “backlog of cases [grown] to the point where it is no longer sustainable.” Among...more

Pennsylvania Plaintiff Drops Challenge to FTC Non-Compete Rule

On October 4, 2024, Plaintiff ATS Tree Services, LLC (“ATS”) voluntarily dismissed its claims against the FTC challenging the agency’s Non-Compete Rule. See ATS Tree Services, LLC v. Fed. Trade Comm’n, et al., No....more

More Bad News for the FTC: Federal Court in Florida Enjoins Enforcement of Non-Compete Ban

Wednesday, a third court weighed in on the FTC’s proposed ban on non-competes, set to go into effect on September 4, 2024. Judge Corrigan of the United States District Court for the Middle District of Florida granted the...more

Federal Court in Pennsylvania Creates District Split on Enforceability of FTC Non-Compete Ban

Yesterday, the Court in the ATS Trees v. FTC case denied Plaintiff ATS Trees’ Motion for Stay and Enjoin the FTC recent Ban on Non-Compete agreements (“Final Rule”), because, the Court held, ATS Trees failed to establish...more

The FTC’s “Good Faith” Exception to the Non-Compete Ban: Pending Legal Challenges Are Not a Basis for Non-Compliance

The FTC’s recently issued Final Rule banning non-competes for most workers prohibits an employer from (1) threatening to enforce a non-compete against a worker, (2) advising the worker that, due to a non-compete, they should...more

Cutting Off Claims – When Does the FTC Noncompete Ban Allow for Accrued Actions?

The FTC’s Final Rule banning non-competes in worker agreements contains a noteworthy exception that its provisions “do not apply where a cause of action related to a non-compete clause accrued prior to the effective date.” ...more

FTC Non-Compete Ban Lawsuits Update: Eastern District of Texas Stays Chamber of Commerce Suit in Favor of Ryan LLC as...

On May 3, 2024, the United States District Court for the Eastern District of Texas entered an Order staying the proceedings in Chamber of Commerce v. FTC by granting the FTC’s motion to apply the first-to-file doctrine, in...more

Analysis of FTC Non-Compete Ban Legal Challenges: Does the Ban Pass Constitutional Muster? (And Other Issues)

On April 23, 2024, the Federal Trade Commission (FTC) voted in a 3 to 2 decision along party lines to adopt its Final Non-Compete Clause Rule (“Noncompete Rule”) banning post-employment non-compete clauses between employers...more

Asking Again-Do You Really Want to Keep Paying Commissions to the Salesperson You Fired? (Update)

We previously wrote about the procuring-cause doctrine here. As a refresher, the procuring-cause doctrine provides that a salesperson or other agent who contracts for a commission becomes entitled to payment of the commission...more

FDIC Updates Bank Merger Guidance to Include Non-Compete Ban

On March 21, 2024, the Federal Deposit Insurance Corporation (“FDIC”) approved a Federal Register notice seeking public comment on its proposal to revise its current Statement of Policy on Bank Merger Transactions. Among the...more

Fifth Circuit Spares Trade Secrets Suit, But Clarifies That Specific Evidence of Irreparable Harm Must Support Request for...

In Direct Biologics L.L.C. v. McQueen, et al., the U.S. Court of Appeals for the Fifth Circuit vacated a lower court’s dismissal of a trade secret and restrictive covenants suit, but nonetheless stressed the need for movants...more

Do You Really Want to Keep Paying Commissions to the Salesperson You Fired?

Seyfarth Synopsis: Baylor Miraca Genetics Laboratories, LLC (“BMGL”) is in the genetic test business. BMGL sells its tests to its “channel partners,” who in return test specimens ordered by physicians. Brandon Perthuis became...more

FTC Further Scrutinizes Use of Non-Competes in Merger Transactions

The Federal Trade Commission (FTC) recently set its sights squarely on non-compete agreements in merger transactions, making them ripe for further scrutiny. In a Consent Order issued June 14, 2022, the FTC ordered GPM...more

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