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US District Court Sets Aside the FTC’s Noncompete Ban on a Nationwide Basis

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

US District Court Enjoins Federal Trade Commission’s Noncompete Rule For The Named Plaintiffs

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

The Impact of the FTC’s Noncompete Rule on Current and Future Noncompete Litigation

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

Federal District Court Declines to Award ‘Bad Faith’ Fees for Party’s Failure to Sufficiently Identify Trade Secrets in Federal...

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

The FTC’s Rule Banning Noncompetes: September 4 Effective Date and FTC-Sponsored Compliance Webinar

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

How to Respond to Employee Questions about the FTC’s Noncompete Ban (As a Company that Uses Noncompetes)

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

The Federal Trade Commission Attempts to Ban Employee Noncompete Covenants

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

Federal Trade Commission to Vote on Proposed Noncompete Ban on April 23

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 Trade Secrets End of Year Report

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

Beverage & Food Industry in 2024: 10 Hot Topics for Beverage & Food Industry Founders, Investors, and Executives

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

Hospitality: 2023 Year in Review

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

Federal Court Hits the Brakes on $105 Million Trade Secret Verdict Against Ford Motor Company

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

NLRB General Counsel Asserts That Non-Competition Agreements For Non-Management and Non-Supervisory Employees Are Unlawful

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

DOJ Loses No-Poach Action Following Motion for Acquittal

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

Fourth Circuit: Employers Can Enforce Fiduciary Duty Claims Against Employees Competing For New Contract

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

FTC Holds Public Forum on Proposed Rule Banning Use of Non-Compete Agreements, Seeks Written Comments

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

FTC Contemplates Banning Non-Compete Covenants in Franchise Agreements

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

FTC Proposes Rule Banning Use of Non-Compete Agreements in Employment

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

Maryland Court Rejects Tech Company’s Ask For Affirmative Summary Judgment Against Former Employee Charged With CFAA Violations

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

Litigating Spoliation Claims in Trade Secret Cases: Recent Trends Toward Terminating Sanctions

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

DC Council Passes Bills Amending Non-Compete Ban

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

FTC Signals First Action Restricting the Use of Noncompetes

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

DC Non-Compete Ban Further Delayed Until October 1, 2022

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

In Government Contracting Dispute, 11th Circuit Affirms $2M Verdict for Breach of Teaming Arrangement and Revives $100M Trade...

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

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