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FTC Issues Sweeping Non-Compete Ban

On April 23, 2024, the FTC (Federal Trade Commission) voted 3-to-2 along party lines to approve a final rule (Rule) that prevents all for-profit employers nationwide from using non-compete agreements for any worker (whether...more

New York Redefines the Permissible Scope of Invention Assignment Provisions

Invention assignment provisions are fundamental in employment agreements. On one hand, they are the mechanism by which an employer takes ownership of important types of intellectual property employees create that relates to...more

California Extends Prohibition on Noncompete Agreements

California law famously bans employee noncompetition agreements, under a statute enacted in 1872. As of January 1, 2024, new amendments to this age-old statute provide clarity about what is—and is not—enforceable....more

FTC Takes Action Against Employee Noncompete Clauses Through Rulemaking and Enforcement Actions

On January 5, 2023, the Federal Trade Commission (FTC) voted 3-1 to propose the Noncompete Clause Rule (the rule), which would ban essentially all noncompete clauses that employers impose on their employees and other workers....more

District of Columbia Bans Non-Competes

On January 11, 2021, the mayor of the District of Columbia signed D.C. Act 25-563, the Ban on Non-Compete Agreements Amendment Act of 2020 (the Act), which was then submitted to Congress for approval in accordance with the...more

Recent Cases Shed Light on the Status of Employee Non-Solicitation Agreements in California

Two recent cases have found that employee non-solicitation agreements, at least in the form many companies currently use, are unlawful in California. In AMN Healthcare, Inc. v. Aya Healthcare Services, Inc., 28 Cal. App. 5th...more

Massachusetts Imposes Significant Restrictions on Post-Employment Non-Competition Covenants

Massachusetts has joined a growing list of states, including Colorado, Georgia, Hawaii, Oregon, and Utah, among others, with statutes placing limits on the permissible terms and scope of agreements prohibiting employees from...more

White House Issues Call to Action Urging States to Curb Employers' Use of Non-Compete Agreements

The White House has entered the fray regarding employer use of non-compete agreements. While the Obama administration's recently issued "State Call to Action on Non-Compete Agreements" does not change current law applicable...more

Newly Enacted Defend Trade Secrets Act Requires Employers to Revise Agreements Now to Preserve Maximum Remedies

On May 11, 2016, we reported in a WSGR Alert that under the new Defend Trade Secrets Act (DTSA), employers seeking exemplary damages or attorneys' fees in a trade secrets misappropriation action must provide employees with...more

California Supreme Court Upholds Enforceability of Class Action Waivers in Mandatory Arbitration Agreements

The California Supreme Court has upheld the use of class action waivers in mandatory arbitration agreements. In Iskanian v. CLS Transportation of Los Angeles (June 23, 2014), the court held that a state's refusal to enforce...more

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