News & Analysis as of

Preliminary Injunctions Non-Compete Agreements

Lathrop GPM

Massachusetts Federal Court Grants Preliminary Injunction for Noncompete Violations, Denies Injunction for Trademark Infringement

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A federal court in Massachusetts recently granted, in part, a Motion for Preliminary Injunction as to enforcement of franchise agreement noncompete covenants but denied the motion as to claims of trademark infringement,...more

Fox Rothschild LLP

Two business court rulings offer insights on trade secret pleadings, employment agreements, and credibility

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Maven Advantage, Inc. and Square One Storm Restoration, LLC are competing roofing businesses. Maven alleged that two employees (Couch and Daniels) stole Maven’s trade secrets (customer lists) and then quit to work for Square...more

Proskauer - Trade Secrets

Georgia Federal Court Denies TRO and Motion to Dismiss in Trade Secrets Case

On March 27, 2025, in Stimlabs LLC v. Griffiths, the U.S. District Court for the Northern District of Georgia ordered a former executive, Sarah Griffiths, to face claims related to her alleged theft of Stimlab’s trade secrets...more

DLA Piper

Be Global: Employment Law in 5 - February 2025

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The US employment landscape continues to shift rapidly. On 21 February 2025, a federal district court enjoined the federal government from enforcing certain provisions of President Trump’s DEI Executive Orders (appeal...more

Sheppard Mullin Richter & Hampton LLP

Evidence of a Defendant’s Physical or Digital Retention of Trade Secret Information Is Not Required to Prove Trade Secret...

A recent federal district court ruling serves as an important reminder that a former employee may be held liable for trade secret misappropriation even if the alleged trade secrets are not physically or electronically taken...more

Seward & Kissel LLP

Employment Litigation Roundup: December 2024

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Arizona employer cannot exclude settlement communications from former employee’s retaliation complaint - In Flores v. Rafi Law Group PLLC, the plaintiff accused her law firm employer of retaliating against her by (i)...more

Lewitt Hackman

Franchisee 101: Muscling Through the Competition

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A Minnesota district court issued a preliminary injunction against a former franchisee who engaged in a competing business during the franchise relationship. Snap Fitness, Inc., a gym franchisor, entered into a franchise...more

Cozen O'Connor

Democratic AGs File Amicus Brief Supporting FTC’s Non-Compete Rule

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A coalition of 18 Democratic AGs filed an amicus brief with the U.S. Court of Appeals for the Eleventh Circuit in Properties of the Villages, Inc. v. the Federal Trade Commission ( 24-13102) supporting the FTC’s defense of...more

Stevens & Lee

FTC Asserts Its Rulemaking Authority in Opening Brief Defending Its Ban on Noncompetes

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On Nov. 5, the Federal Trade Commission (FTC) filed its opening brief in its pending appeal in Properties of the Villages, Inc. v. FTC,No. 24–13102 (M.D. Florida). As previously reported, on Aug. 14, Judge Timothy Corrigan...more

Lewitt Hackman

Franchisee 101: Kicking Injunctions to the Curb

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A Kansas district court denied a franchisor’s motion for preliminary injunction against its former franchisee who engaged in competing businesses immediately after terminating the franchise relationship....more

Morrison & Foerster LLP

FTC Appeals Texas Court’s Ruling Blocking FTC’s Non-compete Ban

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The Federal Trade Commission (FTC) has appealed a ruling from a Texas district court that set aside the FTC’s rule banning non-competes with employees (the “Rule”). As we previously reported, on August 20, 2024, Judge Ada E....more

Pierce Atwood LLP

Noncompete Rule Update: FTC Appeals Decision Overturning Ban

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The Federal Trade Commission (FTC) has appealed a Texas federal district court decision invalidating its rule governing non-competition agreements. In August 2024, in the case of Ryan LLC v. Federal Trade Commission,...more

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

FTC Appeals Texas District Court Ruling that Blocked Noncompete Ban to Fifth Circuit

The Federal Trade Commission (FTC) is appealing a Texas federal court ruling that struck down the FTC’s noncompete ban nationally, teeing the case up to be heard by the U.S. Court of Appeals for the Fifth Circuit....more

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

Pennsylvania Company Drops Challenge to FTC Noncompete Ban After Injunction Denial

A Pennsylvania company has dropped its challenge to the Federal Trade Commission’s (FTC) noncompete ban after a Pennsylvania federal judge denied the company’s bid to block the rule. The dismissal of the Pennsylvania lawsuit...more

Seyfarth Shaw LLP

Pennsylvania Plaintiff Drops Challenge to FTC Non-Compete Rule

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On October 4, 2024, Plaintiff ATS Tree Services, LLC (“ATS”) voluntarily dismissed its claims against the FTC challenging the agency’s Non-Compete Rule. See ATS Tree Services, LLC v. Fed. Trade Comm’n, et al., No....more

Seyfarth Shaw LLP

Noncompete Agreements – Employer Options and Strategies to Reduce Risks

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Seyfarth Synopsis: The federal district court for the Northern District of Texas has issued an order in the Ryan case staying the effective date on a nationwide basis the Federal Trade Commission (FTC) Rules banning...more

Seward & Kissel LLP

Employment Litigation Roundup: September 2024

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In Nunez v. Syncsort Incorporated, a Massachusetts court held that a retention bonus did not constitute not “wages” under the Massachusetts Wage Act (the “Wage Act”). The plaintiff-employee alleged that his former employer...more

Lewitt Hackman

Franchisee 101: No Spice; No Injunction

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A Colorado federal court denied a franchisor’s request for preliminary injunction that would enforce a non-compete provision against a former franchisee. The franchisor of spice and tea shops known as Spice & Tea Merchants...more

Benesch

First Circuit Declines to Enforce California’s Out-of-State Noncompete Ban

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On September 26, 2024, a Boston-based federal appeals court refused to extend California’s sweeping noncompete ban to agreements that were signed outside the state and governed by another state’s law....more

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

FTC to Appeal Florida Court’s Preliminary Injunction of Noncompete Ban Following Texas Court’s Block

The Federal Trade Commission (FTC) is appealing a Florida federal court ruling temporarily blocking the FTC’s noncompete ban a month after a Texas federal judge in a separate case blocked the FTC’s ban on a nationwide basis....more

Jenner & Block

Non-Competition Agreements; FTC Rule Status

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As we previously reported, on April 23, 2024, the Federal Trade Commission (FTC) announced their final rule banning most “non-competition” agreements. The FTC determined non-competition agreements were an unfair method of...more

Seyfarth Shaw LLP

The Saga’s Not Over – FTC Appeals Florida Court’s Stay of Non-Compete Rule

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Just over a month ago, employers throughout the United States breathed a sigh of relief after Judge Ada Brown in the Northern District of Texas issued a summary judgment ruling in the Ryan v. FTC litigation setting aside the...more

Clark Hill PLC

The FTC Rule Banning Noncompetes Has Been Struck Down – For Now

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On Aug. 20, a new federal court decision from the Northern District of Texas in Ryan LLC v. Federal Trade Commission halted enactment of the Federal Trade Commission’s (“FTC”) Rule banning noncompete agreements throughout the...more

Lathrop GPM

Michigan Federal Court Grants Franchisor’s Motion for Preliminary Injunction Against Former Restoration Service Franchisee

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A federal court in Michigan has granted a franchisor’s motion for preliminary injunction against former franchisees for violating the franchise agreements’ post-termination noncompete provisions. 1-800 Water Damage Int’l LLC...more

Pillsbury Winthrop Shaw Pittman LLP

District Court Ruling Bars Federal Trade Commission Non-Compete Rule for the Near Term

With further proceedings anticipated, and in light of the numerous state law restrictions on non-competes, employers should continue to act with caution when presenting employees with non-compete agreements. On August 20,...more

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