News & Analysis as of

Enforceability Restrictive Covenants

Benesch

Texas Federal Court Rejects FTC’s Non-Compete Ban

Benesch on

As every employer in the U.S. is likely aware, the Federal Trade Commission’s (“FTC”) near-universal ban on non-competes nationwide, which the FTC voted to implement via regulatory rulemaking on April 23 of this year, has...more

Tucker Arensberg, P.C.

An Update on the Uncertain Future of the FTC’s Non-Compete Rule, Plus Pennsylvania Enacts New Non-Compete Law for Healthcare...

Tucker Arensberg, P.C. on

Since it was first published in April, the fate of the Federal Trade Commission’s (FTC) final non-compete rule has been, to put it mildly, less than certain. Now, about a month before the rule is scheduled to take effect, the...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

FTC Noncompete Ban Rule Survives Challenge in Pennsylvania Federal Court, but Still Contested in Florida and Texas

On July 23, 2024, a judge in the U.S. District Court for the Eastern District of Pennsylvania denied a motion for preliminary injunction seeking to stay the effective date of the Federal Trade Commission’s (FTC) final...more

BakerHostetler

The Second Decision Is In: PA Court Finds FTC Noncompete Rule Enforceable, Creating Conflicting Decisions and Uncertainty

BakerHostetler on

On July 23, 2024, the United States District Court for the Eastern District of Pennsylvania issued a decision in ATS Tree Services, LLC v. FTC, which held that the Federal Trade Commission (FTC) had the authority to issue its...more

Lathrop GPM

New Jersey Federal Court Partially Enforces Noncompete Covenant Against Former Franchisee

Lathrop GPM on

A federal court in New Jersey recently granted a franchisor’s motion for a preliminary injunction, enjoining the former franchisee from using the franchisor’s marks and violating the franchise agreement’s noncompete clause,...more

Dechert LLP

Navigating the Shift: The Future of Non-Compete Clauses

Dechert LLP on

At Dechert, we have been closely monitoring legal developments with respect to the use of non-competes and other restrictive covenants and have observed a growing trend in the United States, the United Kingdom and France...more

Lathrop GPM

Eleventh Circuit Affirms in Part, Reverses in Part, District Court Determination to Blue Pencil and Enforce Noncompete Agreement

Lathrop GPM on

The Eleventh Circuit Court of Appeals recently affirmed in part, and vacated in part, a district court’s issuance of an injunction preventing a franchisor’s enforcement of a noncompete covenant as written but allowing...more

Seyfarth Shaw LLP

50 State Desktop Reference - What Businesses Need to Know about Non-Competes and Trade Secrets Law

Seyfarth Shaw LLP on

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

Ervin Cohen & Jessup LLP

­California Opens its Doors to Commerce by Voiding Out-Of-State Non-Compete Agreements

You may have heard the half-serious joke that California acts as its own independent country. One example of this is California’s strong disfavor of non-compete agreements, which stands in contrast with the rest of the...more

Saiber LLC

The Changing Landscape of Non-Competes and Restrictive Covenants

Saiber LLC on

A common example of a non-compete restriction is a new CPA who signs such an agreement as part of his or her onboarding paperwork. Years later, the CPA considers moving to another firm, or opening their own firm, but that...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Georgia Appellate Court Says Employee Nonsolicitation Covenant Not Enforceable Without Express Geographic Limitation

In a recent decision, a Georgia appellate panel held that an employee nonsolicitation covenant that limits what parties can do following the end of a business relationship must have an explicit geographic limitation to be...more

Parker Poe Adams & Bernstein LLP

North Carolina Court of Appeals Upholds Use of Noncompete by Distressed Business

In order to seek enforcement of a noncompetition agreement in North Carolina, the plaintiff must show that it is protecting a legitimate business interest. What happens when the company seeking to enforce the agreement has...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

California Bill Would Impose Penalties on Employers and Attorneys for Attempting to Enforce Restrictive Covenants

In February 2023, new legislation was proposed in the California State Assembly that, if adopted and signed into law by Governor Gavin Newsom, could have a significant impact on employers and their attorneys providing advice...more

Venable LLP

The Risks of Noncompetition Agreements for Remote Employees

Venable LLP on

More than two years into the pandemic, most employers are familiar with many of the challenges raised by engaging remote employees. However, one often overlooked issue is whether noncompetition agreements vetted for in-state...more

Stokes Wagner

A New Era for Noncompetes

Stokes Wagner on

Historically, employers have used noncompete agreements to prevent competition or dissemination of confidential information when an employee leaves a company. However, the last few years has seen the erosion of their...more

Royer Cooper Cohen Braunfeld LLC

The Future of Non-Compete Agreements

On July 9, 2021, President Biden issued an “Executive Order on Promoting Competition in the American Economy.” Notably, the order encourages the FTC to promulgate rules to “curtail the unfair use of non-compete clauses and...more

Sheppard Mullin Richter & Hampton LLP

Illinois Governor Signs Non-Compete Legislation

On August 13, 2021, Governor Pritzker signed into law a bill amending the Illinois Freedom to Work Act governing restrictive covenants and non-competition agreements. On May 30, 2021, the Illinois General Assembly passed a...more

Sheppard Mullin Richter & Hampton LLP

What Employers Need to Know About New Non-Compete Legislation in Illinois

Following a nationwide trend, Illinois has proposed significant legislation affecting employee restrictive covenants, such as non-compete agreements. While the proposed law does not dramatically change most aspects of the...more

Holland & Knight LLP

Illinois Bill Modifying Non-Competition Agreements Nears Enactment

Holland & Knight LLP on

Illinois Gov. JB Pritzker is expected to soon sign into law a bill that will make significant changes to the Illinois Freedom to Work Act and affect the enforceability of employee non-competition provisions. The General...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Massachusetts High Court Clarifies Standards for Judicial Review of Anti-Raiding Provisions in Restrictive Covenants

The Massachusetts Supreme Judicial Court (SJC), the Commonwealth’s highest court, recently clarified the standards applicable to analyzing nonsolicitation and anti-raid restrictive covenants following the sale of a business -...more

Dentons

HR Quick Takes: Non-Competes

Dentons on

Q: Are non-competes enforceable in Iowa? A: Yes, but with a whole lot of caveats. Enforceability depends a lot on how they are structured (too indefinite, poor definitions, the employee will starve because it prevents all...more

BCLP

Georgia Noncompete Law Remains Enforceable

BCLP on

In light of the continued merger activity within the state, including the blockbuster SunTrust/BB&T merger, we’ve seen a renewed focus on the enforceability of non-compete provisions – from banks looking to hire, from banks...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Louisiana Court Finds Nonsolicitation/Noncompetition Agreement Is Enforceable

When Jay Baker, the vice president of Causin, L.L.C., quit to create a competing business, Causin sued to enforce Baker’s nonsolicitation/noncompetition agreement. Baker defended the claim in part by arguing the agreement’s...more

Foley & Lardner LLP

Non-competes for Existing Employees May Require Additional Consideration

Foley & Lardner LLP on

It is not uncommon for employers to ask existing employees to sign non-compete agreements. For example, new management may want to tighten up a company’s protections. Or, changes in the business may make the need for employee...more

Burns & Levinson LLP

Even a Well-Crafted Non-Compete May Not Get You Injunctive Relief

Burns & Levinson LLP on

No doubt, having a properly drafted agreement is critical if you wish to prevent a former employee from competing against you or soliciting your customers. But, simply having a clear and straight-forward agreement may not be...more

30 Results
 / 
View per page
Page: of 2

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
- hide
- hide