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Washington state law just changed in a way that might have made your company’s non-solicitation agreements unenforceable and illegal. Recent amendments to the state non-compete statute took effect on June 6 and significantly...more
As reported earlier, the FTC voted this week to approve its Final Non-Compete Clause Rule (the “Rule” or “Final Rule”), which outlaws almost all non-compete agreements between employees and employers throughout the country. ...more
A bill amending Washington’s noncompete law (RCW 49.62) goes into effect on June 6, 2024. One of the changes will require prompt review and likely revisions of existing non-solicitation agreements....more
The Department of Justice’s years-long campaign to criminally prosecute no-poach agreements may be taking a hiatus. On November 13, 2023, the DOJ moved to dismiss its indictment against Surgical Care Affiliates, LLC (“SCA”),...more
Introduction - As we enter a new era of business landscape dynamics, Seyfarth Shaw is pleased to present the latest edition of our annual cornerstone publication. This comprehensive 50-State Non-Compete Desktop Reference,...more
On August 25, 2023, in Deslandes v. McDonald’s, the Seventh Circuit Court of Appeals vacated and remanded a district court’s dismissal of an antitrust case that challenged no-hire and non-solicitation clauses in McDonald’s...more
Non-compete agreements may soon be a thing of the past in New York. Following the passage by the New York State Senate of S3100A, the State Assembly passed A1278B, and if signed into law, it would add new Section 191-d into...more
Amendments to the Canadian Competition Act (Act), taking effect on June 23, 2023, will make it a criminal offence for unaffiliated employers to agree, conspire or arrange to: •“fix, maintain, decrease or control salaries,...more
The federal Canadian Competition Act is the principal legislation that aims to deter and prevent anti-competitive practices in the Canadian marketplace. One year ago, the Canadian government made major amendments to the act. ...more
Minnesota has enacted one of the strictest state non-compete laws in the US, banning almost all post-termination non-competes between employers and their employees and between employers and certain independent contractors...more
A proposed law banning virtually all covenants not to compete (also known as non-compete agreements) is headed to the Minnesota State Senate and House of Representatives, where it is widely expected to pass. Once it arrives...more
For US companies contemplating an expansion into the UK, there are a number of employment-related factors to consider, as the requirements for employers and rights of employees differ significantly across the pond. Below,...more
The Federal Trade Commission (FTC) kicked off 2023 by using Section 5 of the FTC Act to take legal action against three companies and two individuals, forcing them to drop noncompete provisions. This is the first time that...more
M&A attorneys representing buyers, and their private equity and strategic clients, have long felt comfortable that the courts would uphold restrictive covenants in an acquisition. Even if the restrictive covenant at hand was...more
Recent amendments to the Employment Standards Act, 2000 (Ontario) and the Competition Act (Canada) may be sounding the death knell for certain restricted covenants in Ontario—both non-competition covenants given by employees,...more
On March 8, 2022, the Fifth Circuit Court of Appeals held that a non-compete agreement was not enforceable because the employer seeking to enforce the agreement had presented it to the employee, and the employee had signed...more
A federal court in Texas recently provided useful insights on what constitutes “solicitation” by a former employee under that employee’s restrictive covenant with his former employer, and the court provided further insights...more
As we discussed in our previous blog, Ontario Bill 27: Working for Workers Act, 2021 is Now the Law, the Ontario government amended the Employment Standards Act, 2000 (the ESA) on December 2, 2021 to include a prohibition on...more
Yesterday's post discussed the Court of Appeal's upholding of a non-solicitation agreement notwithstanding Section 16600 of the California Business & Professions Code. Blue Mt. Enters. v. Owen, 2022 Cal. App. LEXIS 73. The...more
California is famously hostile to covenants not to compete. In fact, Section 16600 of the California Business & Professions Code provides "Except as provided in this chapter, every contract by which anyone is restrained...more
Colorado’s legal landscape continues to shift. Through one sentence in a 304-page bill enacted in 2021, SB 21-271 criminalized violations of Colorado’s restrictive-covenant statute, section 8-2-113, C.R.S. Effective March 1,...more
In an important decision on August 19, 2021, the Ninth Circuit Court of Appeals in Aya Healthcare Services, Inc. v. AMN Healthcare, Inc. affirmed the grant of summary judgment in favor of AMN, finding that the...more
A recent Ninth Circuit ruling in a dispute between two health care staffing agencies clarifies that non-solicitation provisions in business-to-business collaboration agreements are not per se violations of the Sherman...more
A federal appeals recently addressed two important questions in a critical restrictive covenant case, providing important guidance for employers drafting non-compete and non-solicitation provisions and underscoring how the...more
Illinois Governor J.B. Pritzker recently signed a new law into effect that amends the Illinois Freedom to Work Act (IFWA) and creates greater obstacles for employers when it comes to the enforceability of restrictive...more