Jeremy Ben Merkelson on Restrictive Covenants

The FTC's Crackdown on No-Hire Agreements: What Employers Need To Know

The Federal Trade Commission (FTC), in a 3-2 party-line vote last week, ordered a New York City area building services contractor, Guardian Service Industries, Inc. (Guardian), to rescind all "no-hire" agreements, including...more

12/12/2024 / City of New York , Corporate Counsel , Federal Trade Commission (FTC) , No-Hire/No-Solicitation Agreements , Non-Compete Agreements , Restrictive Covenants , Sherman Act , Staffing Agencies

FTC's Non-Compete Rule Is Set Aside—Nationwide

In one of the most highly anticipated court rulings of the summer, on August 20, 2024, the U.S. District Court for the Northern District of Texas concluded that the FTC's Non-Compete Rule, which makes most non-compete...more

8/22/2024 / Federal Bans , Federal Trade Commission (FTC) , Final Rules , FTC Act , Non-Compete Agreements , Preliminary Injunctions , Regulatory Authority , Restrictive Covenants , Texas , Unfair or Deceptive Trade Practices

UPDATE: FTC Publishes Final Rule Banning Non-Competes: A Simple Explanation

Update: The FTC published the Final Non-Compete Clause Rule on May 7, 2024, with an effective date of September 4, 2024. We have updated this advisory, originally published April 23, 2024, after the vote to approve the final...more

5/9/2024 / Corporate Executives , Federal Bans , Federal Trade Commission (FTC) , Final Rules , FTC Act , Non-Compete Agreements , Non-Disclosure Agreement , Non-Solicitation Agreements , Popular , Restrictive Covenants , Trade Secrets

FTC Moves to Approve Final Rule Banning Non-Competes: A Simple Explanation

Occam's Razor holds that sometimes the simplest explanation is the right one. On April 23, 2024, the U.S. Federal Trade Commission ("FTC") took such a view, announcing in a 3-2 vote along party lines that, as the U.S. agency...more

4/24/2024 / Department of Labor (DOL) , Federal Bans , Federal Trade Commission (FTC) , Final Rules , FTC Act , Intellectual Property Protection , Memorandum of Understanding , Non-Compete Agreements , Non-Disclosure Agreement , Non-Solicitation Agreements , Notice of Proposed Rulemaking (NOPR) , Restrictive Covenants , U.S. Commerce Department

January Surprise: Court Ruling on Post-Employment Restrictive Covenants in Delaware

Equity and capital forfeiture for competition provisions given less scrutiny than other post-employment restrictive covenants - Companies subject to Delaware law were handed a welcome surprise in a recent Delaware Supreme...more

2/9/2024 / Competition , DE Supreme Court , Employer Liability Issues , Employment Contract , Employment Litigation , Forfeiture Statutes , Remand , Restrictive Covenants , Reversal

Three Investigations Show D.C. AG Is Aggressively Enforcing Ban on Noncompetes

Employers in the District of Columbia that use noncompete agreements take note: the D.C. Office of the Attorney General ("OAG") is aggressively using its powers to crack down and assess penalties on businesses that violate...more

11/21/2023 / Enforcement , Healthcare , Investigations , No-Poaching , Non-Compete Agreements , Penalties , Pre-Employment Agreements , Restrictive Covenants , Trade Secrets

NLRB General Counsel Moves to Invalidate Noncompete Agreements

On May 30, 2023, the General Counsel of the National Labor Relations Board, Jennifer Abruzzo, issued Memorandum GC 23-08, setting forth her view that noncompete provisions in employment contracts and severance agreements...more

6/2/2023 / Employees , Employer Liability Issues , Employment Contract , Intellectual Property Protection , NLRA , NLRB , NLRB General Counsel , Non-Compete Agreements , Restrictive Covenants , Section 7

Jeremy Ben Merkelson

Davis Wright Tremaine LLP

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