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What's the Tea in L&E? Alert: Non-Compete Agreements Largely Banned by New FTC Rule
The recent federal court ruling striking down the Federal Trade Commission’s (FTC) rule banning non-compete agreements has left many employers breathing a sigh of relief. However, this does not mean that non-compete...more
Real World Impact: Making good on her promise to make a ruling on the FTC Noncompete Rule on or before August 30, 2024, United States District Judge Ada Brown granted a motion for summary judgment that sets aside the FTC...more
A Texas federal court just struck down the FTC’s proposed ban on non-competition agreements on a nationwide basis mere weeks before it was set to take effect, meaning employers across the country can breathe a sigh of relief...more
A Florida federal court became the second court in the nation Wednesday to rule that the Federal Trade Commission’s proposed ban on most non-compete agreements cannot be enforced. Chief Judge Timothy Corrigan, from the Middle...more
Even though the FTC’s impending rule that will ban most non-competition agreements specifically carves out claims for violations that accrue before the rule goes into effect – an exception that many federal courts have...more
A Pennsylvania federal judge has just declined to issue an order to preliminarily block the FTC’s non-compete ban ahead of its September 4 effective date. The court rejected the employer’s argument that the rule is an...more
On May 31, 2024, the Governor of Colorado signed House Bill 24-1324, titled “Attorney General Restrictive Employment Agreements,” putting into place a law to toughen protections for employees who are subject to abusive...more
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 we recently reported, the Federal Trade Commission (FTC) issued its long-awaited final rule on April 23, 2024, banning virtually all noncompetition agreements between employers and workers. Lawsuits challenging the final...more
The U.S. District Court for the Eastern District of Texas has issued an aggressive scheduling order that “should allow prompt resolution of” one of the initial challenges to the FTC’s noncompete ban “with sufficient time,...more
On April 23, 2024, the Federal Trade Commission (FTC) voted in a 3 to 2 decision along party lines to adopt its Final Non-Compete Clause Rule (“Noncompete Rule”) banning post-employment non-compete clauses between employers...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
As federal administrative agencies wade further into rulemaking and adjudicative efforts to outlaw noncompetes and restrictive covenants, defendants are beginning to raise preemption arguments in response to state court...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
California has done it again! We reported last month concerning California’s new non-compete law that furthers the state’s protections for employee mobility and seeks to void out of state employee non-compete agreements....more
We are in the final stretch of the California legislature’s first year of a two-year session. One bill that sped through the legislative process—without any registered opposition—is Senate Bill 699, which extends the state’s...more
New York lawmakers just passed legislation that would ban employee non-compete agreements, heading to Governor Hochul for consideration. If signed into effect by the governor, the law will be a sea change for New York...more
Non-compete agreements may soon be unlawful in New York. The New York State Assembly passed A1278B on June 20, and the New York State Senate previously passed its counterpart bill, Senate Bill 3100A, earlier this month. If...more
Seyfarth Synopsis: The New York City Council has passed a bill that prohibits employers from considering a person’s actual or perceived height or weight when making employment decisions....more
The UK government on May 10, 2023, announced its intention to limit the length of post-employment non-compete clauses (i.e., restrictions prohibiting an employee from going to work for a competitor or to start a rival...more
Dear Ruder, we are getting lots of long emails from various sources about this proposed noncompete ban. Can you please break this down in easy-to-read language so we don’t have to review the entire 216 pages of the FTC’s...more
The Federal Trade Commission’s (FTC’s) January 5, 2023, notice of proposed rulemaking would ban businesses from entering into and maintaining noncompete clauses with workers. In this LawFlash, we answer several frequently...more
On Jan. 5, 2023, the Federal Trade Commission (FTC) issued a Notice of Proposed Rulemaking (Proposed Rule) seeking to categorically ban nearly all employer non-competition agreements nationwide. If passed in its draft form,...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
The panel of the Ninth Circuit Court of Appeals that largely upheld California’s law banning mandatory arbitration agreements in the employment context just withdrew its decision. On August 22, 2022, two of the three...more