News & Analysis as of

Enforcement Employment Contract

Davis Wright Tremaine LLP

California Legislature Sends Bills Regulating AI to the Governor

Last week, the California Legislature passed several bills that, if signed by the governor, will regulate how organizations develop, train, and use artificial intelligence (AI) models, systems, and applications. Of these...more

Woods Rogers

CFPB Warns Employee Confidentiality Agreements May Violate Whistleblower Protections

Woods Rogers on

The Consumer Financial Protection Bureau (CFPB) recently issued the Consumer Financial Protection Circular 2024-04 warning financial institutions that broad employee confidentiality agreements may violate the whistleblower...more

Kohrman Jackson & Krantz LLP

To Notice or Not to Notice: Employers Prepare for FTC Non-Compete Rule as September Effective Date Nears

The effective date of the FTC’s Final Rule prohibiting non-compete agreements quickly approaches, yet there is still no definitive resolution as to whether it is constitutional. Nor has there been any preliminary injunction...more

Holland & Knight LLP

District Court Issues Injunction Prohibiting Enforcement of FTC Non-Compete Ban

Holland & Knight LLP on

The U.S. District Court for the Northern District of Texas in Ryan LLC v. Federal Trade Commission issued an order July 3, 2024, enjoining the Federal Trade Commission (FTC) from enforcing its Non-Compete Rule (Rule). The...more

Skadden, Arps, Slate, Meagher & Flom LLP

FAQs About the FTC’s Broad New Ban on Noncompetes

When the Federal Trade Commission (FTC) issued its long-awaited final rule banning virtually all noncompete clauses between workers and employers, it also published 500-plus pages of commentary....more

Miles Mediation & Arbitration

Good Riddance? The Uncertain Future of Covenants Not to Compete

I have a complicated relationship with my favorite Green Day song. Why is a song most often played as the backdrop to graduation videos hoping you “had the time of your life” called, “Good Riddance”? I am similarly...more

Holtzman Vogel Baran Torchinsky & Josefiak

In-Compliance: Holtzman Vogel's April 2024 Round-Up

On April 23, the Federal Trade Commission voted 3-2 to adopt a final rule banning noncompete agreements. The FTC defines a "non-compete clause" broadly as a term or condition of employment that prohibits a worker from, or...more

Proskauer - Law and the Workplace

Federal Trade Commission Approves Rule Banning Most Noncompetes

Today the Federal Trade Commission voted 3-2 to approve a Final Rule that, absent a successful legal challenge, will ban most noncompete agreements in the United States beginning 120 days after publication in the Federal...more

ArentFox Schiff

2023 Trade Secrets End of Year Report

ArentFox Schiff on

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

Parker Poe Adams & Bernstein LLP

Labor Department and Federal Trade Commission Announce Collaboration Initiative

Last week, the U.S. Department of Labor and Federal Trade Commission announced that they have entered into a memorandum of understanding for the purpose of sharing information and coordinating enforcement efforts. The...more

Seward & Kissel LLP

"An Ounce of Prevention"...How to Reduce the Risk of Litigation and Enforcement Proceedings

Seward & Kissel LLP on

To paraphrase what Ben Franklin may have been alluding to nearly 300 years ago in his famous quote, often the best approach when it comes to reducing the risk of litigation and government enforcement proceedings is to take...more

ArentFox Schiff

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

ArentFox Schiff on

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

Bradley Arant Boult Cummings LLP

Not Interstate? You Must Arbitrate – Third Circuit Rules Uber Drivers Don’t Meet FAA Exception

Can you require your workers to arbitrate claims? What if they work in interstate commerce? Recently several courts have addressed the scope of the Federal Arbitration Act (FAA) and when it applies to arbitration agreements...more

Society of Corporate Compliance and Ethics...

Federal Trade Commission proposes a noncompete ban: Five things to know

By now, most compliance professionals are aware of the Federal Trade Commission (FTC) press release from January 5, which announced its proposed rule to ban noncompete clauses. The FTC proposed adding a new subchapter J,...more

Flaster Greenberg PC

Is the government banning my non-competition agreements?

Flaster Greenberg PC on

Employers, make no mistake, the federal government and state governments are targeting employee non-competition agreements, also called non-competes. Broadly, legislatures and government agencies are concerned employers are...more

Perkins Coie

The District of Columbia Implements a Modified Ban on Non-Compete Provisions

Perkins Coie on

After more than a year of delays and revisions, the long-awaited Ban on Non-Compete Agreements Amendment Act of 2020 (the Act) took effect beginning October 1, 2022, following the passage of the Non-Compete Clarification...more

Faegre Drinker Biddle & Reath LLP

DC Finally Prunes its Ban on Non-Competes

When initially enacted in January 2021, the District of Columbia’s Ban on Non-Compete Agreements Amendment Act was one of the broadest non-compete prohibitions in the country.  Its effective date, however, was delayed on...more

Proskauer - Law and the Workplace

D.C. Council Passes Law Significantly Scaling Back Non-Compete Ban

On July 12, 2022, the District of Columbia Council voted to modify key aspects of the Ban on Non-Compete Agreements Amendment Act (“the Act”), passing the Non-Compete Clarification Amendment Act of 2022 (“the Amendment”). As...more

McDermott Will & Emery

Is There a Doctor in the House? Helping Physician Non-Competes Survive Challenges

McDermott Will & Emery on

Many non-compete agreements face challenges in both execution and enforcement. Each state has its own standards for what is permissible regarding duration and scope. And many states layer on additional restrictions and...more

King & Spalding

Jurisdictions Are Vying for the Most Restrictive Non-Compete Laws and Your State Could Be Next

King & Spalding on

Series 3, 10 in 10: Issue 1 - Non-compete agreements are coming under increased scrutiny across the United States with several states and municipalities implementing new restrictions on these agreements in the employment...more

Mitchell, Williams, Selig, Gates & Woodyard,...

Non-Compete Agreements: Will Arkansas Courts "Blue Pencil" an Unreasonable Non-Compete Agreement?

In employment law, “blue penciling” a non-compete agreement refers to the practice whereby a court concludes that a non-compete agreement is unenforceable because it is overly broad, but rather than throw out the agreement...more

Mitchell, Williams, Selig, Gates & Woodyard,...

Non-Compete Agreements: Must an Employer Pay an Employee for a Non-Compete to Be Enforceable?

Yes. However, for many non-competes, an employee’s continued employment is sufficient. For non-competes signed after July 21, 2015, the statute explicitly states that an employee’s continued employment is sufficient...more

Mitchell, Williams, Selig, Gates & Woodyard,...

Non-Compete Agreements: What is a Reasonable Geographic Area of Coverage for a Restriction?

It depends. The first question to ask is when was this non-compete agreement signed? In Arkansas, the watershed date is July 22, 2015, which is when a landmark non-compete statute came into play. ...more

Womble Bond Dickinson

Opportunity Economy: Risks in Antitrust Enforcement

Womble Bond Dickinson on

Takeaways - ..The Biden administration’s recent executive order takes a hard line on limits to employment mobility, such as non-compete agreements. ..No-poach agreements—companies agreeing not to recruit each other’s...more

Foley & Lardner LLP

Illinois Enacts Law Limiting Non-Compete and Non-Soliciation Provisions with Employees

Foley & Lardner LLP on

On August 13, 2021, the State of Illinois enacted a law, amending the Illinois Freedom To Work Act (the Law) to limit the enforceability of non-competition and non-solicitation agreements between employers and employees in...more

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