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Non-Compete Agreements › Contract Terms › Employer Liability Issues

Non-Compete Agreements are contracts, typically formed in employment or business purchase contexts, where one party agrees to refrain from engaging in a particular line of work or pursuing business within a... more +
Non-Compete Agreements are contracts, typically formed in employment or business purchase contexts, where one party agrees to refrain from engaging in a particular line of work or pursuing business within a certain industry or locale. The purpose of these agreements is to protect employers or business purchasers from competition stemming from former employees or former owners of a business. less -
Franczek P.C.

FTC Ban on Non-Competes Is Blocked — For Now

Franczek P.C. on

Back in April 2024, the Federal Trade Commission (FTC) issued a final rule that would have banned non-compete agreements nationwide as of September 4, 2024. (You can read our alert on the FTC’s final rule here.) However, on...more

Poyner Spruill LLP

FTC’s Non-Compete Ban Is On Hold, For Now

Poyner Spruill LLP on

Earlier this year, we wrote about the Federal Trade Commission (FTC) enacting a final rule to ban most all forms of non-compete agreements between employers and employees in the United States (available here).  The ban was...more

Epstein Becker & Green

Continued Employment May Constitute Sufficient Consideration for Noncompete Agreements in Connecticut, but Uncertainty Remains

Epstein Becker & Green on

The Connecticut Supreme Court recently held that continued employment may constitute sufficient consideration for noncompete agreements under Connecticut law, but left unclear the parameters of that holding....more

Sheppard Mullin Richter & Hampton LLP

California Court of Appeal Rules That Partial Sale of Business Can Bind Seller-Owner to a Noncompetition Agreement

Sheppard Mullin Richter & Hampton LLP on

In Samuelian v. Life Generations Healthcare, LLC, — Cal. App. 5th —, 2024 WL 3878448 (Cal. App. Aug. 20, 2024), the California Court of Appeal answered two long outstanding questions of California law concerning the...more

Gray Reed

Texas Federal Court Blocks FTC's Non-Compete Ban

Gray Reed on

On August 20, 2024, Judge Ada Brown of the Northern District of Texas issued her much anticipated order which officially set aside the FTC’s Final Rule Banning Non-Competes (the “Ban”), which we first brought to your...more

Farrell Fritz, P.C.

Unpacking the (Un)Reasonableness of Non-Compete Provisions

Farrell Fritz, P.C. on

New York law generally does not favor non-compete agreements, viewing them as unreasonable restraint of trade. As a result, New York courts apply a rigorous standard when deciding whether to enforce these restrictive...more

Mayer Brown

United States: Restrictive Covenants

Mayer Brown on

The enforceability of restrictive covenants in the United States is currently governed by state law, although that may change if federal rules or legislation are enacted to address such covenants. State laws regarding...more

Mayer Brown

China: Restrictive Covenants

Mayer Brown on

AT A GLANCE - The only post-employment restrictive covenant explicitly stipulated under the People’s Republic of China’s (PRC) labour laws is the non-compete restrictive covenant. The employer and the employee may agree on...more

PilieroMazza PLLC

Texas Court Order Imperils FTC’s Forthcoming Non-Compete Ban

PilieroMazza PLLC on

On July 3, 2024, the District Court for the Northern District of Texas stayed enforcement of the Federal Trade Commission’s (FTC) impending ban on non-compete agreements between employers and employees (the Rule) pending the...more

Burr & Forman

Protecting Confidential Intellectual Property in the Wake of the FTC’s “Final Rule” Against Non-Competition Provisions

Burr & Forman on

As the Federal Trade Commission (FTC) implements “the final rule” banning non-competes, businesses with sensitive intellectual property (IP) must look to alternative measures to safeguard it. Despite apprehension about the...more

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

New Maryland Law Places New Restrictions on Noncompete Agreements for Health Care and Veterinary Professionals

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

Restrictions on noncompete agreements in the state of Maryland for certain care-related industries have become substantially broader. Under Maryland’s House Bill (HB) 1388, Maryland employers now face greater restrictions...more

Sterne, Kessler, Goldstein & Fox P.L.L.C.

FTC Issues Final Rule Banning (Almost All) Non-Compete Agreements

Sterne, Kessler, Goldstein & Fox P.L.L.C. on

On May 7, 2024, the Federal Trade Commission (FTC) issued a Final Rule that renders invalid non-compete clauses in standard employment agreements. 16 C.F.R. § 910. Although some limited exceptions apply, this new regulation...more

Sands Anderson PC

Five Things You Should Know About the FTC’s Ban on Noncompetes

Sands Anderson PC on

The Federal Trade Commission (FTC) rattled the business world last month when it issued a rule that would nullify most noncompete agreements. Within 24 hours, the FTC was sued by two different parties that argued the agency...more

Carlton Fields

Court Direction on FTC’s Noncompete Ban Expected This Summer

Carlton Fields on

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

Shumaker, Loop & Kendrick, LLP

Client Alert: Federal Trade Commission Votes to Ban Non-Competes

Shumaker, Loop & Kendrick, LLP on

On April 23, 2024, the Federal Trade Commission (FTC) voted—and approved—a final rule to ban almost all non-competition agreements in the country....more

DRI

Non-Compete Clauses and Professional Liability

DRI on

Non-compete provisions have long been viewed by employers as reasonable and appropriate velvet handcuffs on departing employees and as an unfair burden on competition by the departing employees. The purpose of non-compete...more

Winthrop & Weinstine, P.A.

FTC Issues Final Rule Banning Non-Competes

Winthrop & Weinstine, P.A. on

Over a year after it proposed a rule banning virtually all non-compete agreements, the Federal Trade Commission (“FTC”) voted to issue its long-awaited final rule.  The final rule is substantially the same as the proposed...more

Cranfill Sumner LLP

The New FTC Rule Banning Non-Competes:  FAQs

Cranfill Sumner LLP on

Earlier this week, the Federal Trade Commission issued a Final Rule banning noncompete agreements nationwide.  Until this point, the law on noncompetes varied from state to state.  Some states’ laws were quite favorable to...more

Polsinelli

FTC Final Rule Banning Most Non-Competes Passes – What You Need to Know

Polsinelli on

On April 23, 2024, the Federal Trade Commission (“FTC”) conducted a special Open Commission Meeting to vote on a Final Rule (the “Rule”) banning most non-compete clauses as an “unfair method of competition.” By a vote of 3-2,...more

Ballard Spahr LLP

FTC Votes to Ban Noncompete Agreements in Employment Contracts

Ballard Spahr LLP on

The Federal Trade Commission (FTC) voted to issue a final rule that would prevent most employers from enforcing noncompete agreements against workers, with only limited exceptions for existing noncompetes with senior...more

Holland & Knight LLP

New FTC Rule Bans Non-Compete Agreements in All Employment Contracts

Holland & Knight LLP on

The Federal Trade Commission (FTC) issued a new rule on April 23, 2024, banning new non-compete agreements in all employment contexts. The highly anticipated rule, which was first proposed in draft form in January 2023, is...more

Quarles & Brady LLP

FTC Seeks to Ban Most Non-Compete Agreements

Quarles & Brady LLP on

On April 23, 2024, the Federal Trade Commission (FTC) voted 3-2 to issue a final rule that bans the use of non-compete agreements between employers and their “workers.”...more

Troutman Pepper

FTC Bans Employee Noncompete Clauses

Troutman Pepper on

The Federal Trade Commission (FTC) voted along party lines (3 to 2) to ban all worker noncompetition provisions. The final rule applies to all employees, including senior executives, and will become effective 120 days after...more

Stinson LLP

FTC Bans Worker Non-Competes

Stinson LLP on

By a vote of 3-2, the Federal Trade Commission (FTC) passed the final version of its much-talked-about non-compete rule. The final rule hews closely to the proposed rule, effectively banning all existing or future non-compete...more

Seyfarth Shaw LLP

FTC Non-Compete Ban: What You Need to Know

Seyfarth Shaw LLP on

On April 23, 2024, the FTC announced its Final Non-Compete Clause Rule (“Final Rule”), which bans post-employment non-compete clauses between employers and their workers. The Final Rule becomes effective 120 days after being...more

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