On August 20, the US District Court for the Northern District of Texas held that the Federal Trade Commission’s (FTC) final rule banning noncompetes is unlawful and “set aside” the rule. “The Rule shall not be enforced or...more
On July 3, the US District Court for the Northern District of Texas issued a decision and order enjoining the Federal Trade Commission (FTC) from enforcing its final rule banning most noncompete agreements....more
On April 23, the Federal Trade Commission (FTC) voted 3-2 to publish a final rule with sweeping effect, purporting to bar prospectively and invalidate retroactively most employee noncompete agreements....more
Earlier this year, a federal district court judge in the Western District of North Carolina declined to award “bad faith” attorney’s fees under the Defend Trade Secrets Act (DTSA).
See Design Gaps, Inc. v. Hall, No....more
On April 30, the Federal Register announced that the Federal Trade Commission’s (FTC) Non-Compete Clause Rule is scheduled to be published on May 7. The Rule becomes effective 120 days after publication, resulting in an...more
As discussed in our recent alerts, the final rule would bar employers from entering into and enforcing noncompetes with most workers.
ArentFox Schiff’s Trade Secrets, Noncompetes & Employee Mobility Team has been...more
4/30/2024
/ Audits ,
Confidential Information ,
Federal Bans ,
Federal Trade Commission (FTC) ,
Final Rules ,
Non-Compete Agreements ,
Non-Disclosure Agreement ,
Non-Solicitation Agreements ,
Nonprofits ,
Notice of Proposed Rulemaking (NOPR) ,
Restrictive Covenants ,
Trade Secrets
Today, the Federal Trade Commission adopted a final rule purporting to ban noncompete covenants for workers nationwide, which will become effective 120 days after publication in the Federal Register, unless first enjoined in...more
4/24/2024
/ Department of Labor (DOL) ,
Federal Bans ,
Federal Trade Commission (FTC) ,
Final Rules ,
FTC Act ,
Non-Compete Agreements ,
Non-Disclosure Agreement ,
Non-Solicitation Agreements ,
Notice of Proposed Rulemaking (NOPR) ,
Restrictive Covenants ,
U.S. Commerce Department
On April 16, the Federal Trade Commission (FTC) announced that it will hold a special Open Commission Meeting on Tuesday, April 23 at 2:00 p.m. ET, for purposes of voting on its proposed final rule banning noncompete...more
2023 was a banner year for trade secrets, non-competes, and other restrictive covenants. Employee non-competes continued to garner attention at the federal agency level, drawing commentary and action from the Federal Trade...more
3/13/2024
/ Competition ,
Confidential Information ,
Contract Terms ,
Cybersecurity ,
Damages ,
Department of Justice (DOJ) ,
Employment Contract ,
Enforcement ,
Federal Labor Laws ,
Federal Trade Commission (FTC) ,
Former Employee ,
Intellectual Property Protection ,
New Legislation ,
NLRA ,
NLRB ,
Non-Compete Agreements ,
Restrictive Covenants ,
State Labor Laws ,
Trade Secrets
2023 was a pivotal year for the emerging companies, creating new categories of winners and losers across the board. Emerging companies incorporating artificial intelligence or that have clear line of sight to positive cash...more
2/20/2024
/ Acquisitions ,
Artificial Intelligence ,
Corporate Executives ,
Corporate Transparency Act ,
Down Rounds ,
Early Stage Companies ,
Emerging Growth Companies ,
Entrepreneurs ,
Estate Planning ,
Federal Trade Commission (FTC) ,
Financing ,
FinCEN ,
FTC Endorsement Guidelines ,
Funding ,
Intellectual Property Protection ,
Investors ,
Mergers ,
Non-Compete Agreements ,
Proposed Rules ,
Ransomware ,
Reporting Requirements ,
Social Media ,
Startups ,
The Copyright Act ,
Venture Capital ,
Wage and Hour ,
Websites
2023 was a pivotal year for the beverage and food industry globally, creating new categories of winners and losers across the board. With a full year of operations largely relieved of pandemic-era restrictions, restaurant...more
2/15/2024
/ Acquisitions ,
Artificial Intelligence ,
Beverage Manufacturers ,
Corporate Transparency Act ,
Estate Planning ,
Food Manufacturers ,
Investors ,
Mergers ,
NLRA ,
NLRB ,
Non-Compete Agreements ,
Office of Foreign Assets Control (OFAC) ,
Ransomware ,
Reporting Requirements ,
Restaurant Industry ,
Social Media ,
Unions ,
Wage and Hour
As we enter the final quarter of 2023, the ArentFox Schiff Hospitality Industry group has identified several opportunities and challenges that could impact the hospitality industry, including issues related to artificial...more
Earlier this month, a federal judge in the Eastern District of Michigan overturned a jury verdict of nearly $105 million against Ford Motor Company for breach of contract and misappropriation of trade secrets. Finding that...more
On May 30, 2023, Jennifer Abruzzo, General Counsel of the National Labor Relations Board (NLRB), published a controversial enforcement memorandum asserting that most post-employment non-competition agreements for...more
The companies allegedly engaged in a multi-year agreement to suppress competition by agreeing to restrict the hiring and recruiting of engineers and other employees. The indictment claimed the purpose of the conspiracy was to...more
In a case involving government contracts, the Fourth Circuit held that a company could proceed with its claims against three former employees for actions they took as employees – through their newly formed company - to pursue...more
On February 16, 2023, the Federal Trade Commission (FTC) held a public forum on its proposed rule that would, with limited exceptions, ban employers from using employee non-compete agreements and require rescission of...more
On January 5, 2023, the Federal Trade Commission (FTC) published a proposed rule that, with limited exceptions, would both ban post-termination non-compete covenants in employment agreements and require rescission of existing...more
On January 5, 2023, the Federal Trade Commission (FTC) proposed a new rule that would ban employers from requiring workers to sign non-competes and require recission of existing non-competes. The FTC’s press release...more
Earlier this month, the US District Court for District of Maryland denied a partial motion for summary judgment in a case filed by Infotek Corporation against Mr. Dwight Preston, a former employee. See Infotek Corp v....more
In a previous article, Litigating Spoliation Claims in Trade Secret Cases, we discussed the rise of spoliation in trade secret and restrictive covenant cases. In that article, we provided background on trade secret laws and...more
On July 12, 2022, the Council of the District of Columbia voted to amend the District of Columbia’s Ban on Non-Compete Agreements Amendment Act of 2020 (the “Act”). Implementation of the Act has been delayed on several...more
On June 15, Lina Khan was sworn in as Chairwoman of the Federal Trade Commission. In an interview with The Wall Street Journal last week, Khan announced that the agency plans to use enforcement actions to curtail the use of...more
Implementation of the District of Columbia’s Ban on Non-Compete Agreements Amendment Act of 2020 (the “Act”) has now been officially delayed until October 1, 2022. The Act had been scheduled to take effect on April 1,...more
Last week, the US Court of Appeals for the Eleventh Circuit affirmed a $2 million jury verdict against Boeing in a breach of contract suit by Alabama Aircraft Industries, Inc. (AAI), a former government contracting partner,...more