News & Analysis as of

Proprietary Information Restrictive Covenants

Moritt Hock & Hamroff LLP

FTC Bans Non-Competes

On April 23, 2024, the Federal Trade Commission (“FTC”) adopted a Non-Compete Clause Rule (the “Rule”) that bans non-compete clauses between workers and employers as unfair methods of competition under Section 5 of the FTC...more

Burr & Forman

Blueprint for Change: How the Construction Industry Should Respond to the FTC’s Ban on Noncompetes

Burr & Forman on

In a groundbreaking move aimed at fostering fair competition and empowering workers, the Federal Trade Commission (FTC) issued a final rule last week to ban noncompete agreements nationwide. This ruling may carry profound...more

Holland & Knight LLP

Don't Fret (Yet): Trade Secrets, NDAs and Non-Solicits After the FTC Non-Compete Rule

Holland & Knight LLP on

With the issuance of the Federal Trade Commission's (FTC or Commission) much-anticipated final rule on its "non-compete ban" (see Holland & Knight's previous alert, "New FTC Rule Bans Non-Compete Agreements in All Employment...more

Bradley Arant Boult Cummings LLP

FTC Moves to Strike Most Noncompetes: Considerations for Cannabis Companies

As Bradley previously reported, the Federal Trade Commission at the beginning of last year issued a notice of proposed rulemaking to effectively ban employee noncompete provisions as an unfair method of competition in...more

Parker Poe Adams & Bernstein LLP

NLRB Continues Assault on Noncompete Agreements

As we have previously covered in EmployNews, in June 2023, the general counsel for the National Labor Relations Board (NLRB) released a memo arguing that most noncompete agreements violate Section 7 of the National Labor...more

Bradley Arant Boult Cummings LLP

Noncompetes Are in the NLRB’s Crosshairs – Can Trade Secret Protections Save Them?

Can you still have noncompete agreements with your employees? What if you explicitly state that the agreement protects trade secrets or other proprietary information? There has been a lot of buzz about this issue, and...more

Dorsey & Whitney LLP

The General Counsel for the National Labor Relations Board (“NLRB”), Jennifer Abruzzo, has recently issued two memorandums...

Dorsey & Whitney LLP on

Abruzzo has been busy. Within the last few months, she has issued two notable memorandums that could have significant impacts on how employers must comply with the National Labor Relations Act (“NLRA”). It is important to...more

Benesch

NLRB’s General Counsel (Once Again) Limits Employment Agreements

Benesch on

In a recent memorandum to all Regional Directors, Officers-in-Charge, and Resident Officers, the National Labor Relations Board’s (“NLRB”) General Counsel, Jennifer Abruzzo, sets forth her view that the proffer, maintenance,...more

Genova Burns LLC

Non-Competes with Rank and File Employees Targeted by NLRB

Genova Burns LLC on

Challenges to non-competes by the federal government continue unabated under the Biden Administration. In the latest effort by the federal government to curtail the use of non-competes, which are traditionally governed by...more

Lewitt Hackman

Franchisor 101: Court Hits Brakes on Former Franchisees

Lewitt Hackman on

An Ohio appellate court upheld the state trial court’s decision to grant a permanent injunction against two former franchisees of an auto body shop franchise working for a competitor in violation of the franchise agreement’s...more

Venable LLP

McLaren Macomb Follow-up: NLRB General Counsel Issues Guidance for Confidentiality and Non-Disparagement Clauses in Severance...

Venable LLP on

Two months ago, the National Labor Relations Board (the Board) changed the rules for confidentiality and non-disparagement clauses in severance agreements. In McLaren Macomb, 372 NLRB No. 58 (2023), which we previously wrote...more

Dorsey & Whitney LLP

Non-competition Agreements under Scrutiny at State and Federal Level

Dorsey & Whitney LLP on

Employee restrictive covenants, in particular non-competition agreements, are under scrutiny at the state and federal level. State legislatures are working to narrow the circumstances under which restrictive covenants may be...more

Fisher Phillips

6 Proactive Tips to Address Employee Defection Concerns Before a Crisis Unfolds

Fisher Phillips on

It is often said that the best defense is a good offense. That is certainly true if you are an employer conducting a risk assessment of potential employee defections that could expose your company to losses of valuable...more

Foley & Lardner LLP

Protecting Trade Secrets In States That Disfavor Noncompetes

Foley & Lardner LLP on

Federal and state laws are becoming increasingly unfriendly to employers' efforts to impose post-employment restrictions on workers via nonsolicit and noncompete agreements. However, even in states that have historically...more

Dorsey & Whitney LLP

Poaching Employees Landed Generator Maker into Hot Water

Dorsey & Whitney LLP on

In a recent trade secrets litigation in the United States District Court in the Northern District of California, a jury awarded the plaintiffs 40 million dollars, half of which was punitive damages. The Court also...more

Sheppard Mullin Richter & Hampton LLP

The District of Columbia Revises Ban on Non-Competes

On July 27, 2022, Mayor Muriel Bowser signed into law the Non-Compete Clarification Amendment Act of 2022, scaling back certain aspects of D.C.’s original Ban on Non-Compete Agreements Amendment Act of 2020. As we previously...more

Bradley Arant Boult Cummings LLP

Beauty (and Value) In the Eye of the Beholder: What Is My Private Company Truly Worth

It is common for private company owners to wonder what price they would receive if their company was offered for sale. When a business owner wants to formally determine the company’s actual value in the marketplace, however,...more

Pillsbury Winthrop Shaw Pittman LLP

DC Non-Compete and Anti-Moonlighting Law to Take Effect October 1, 2022

A new DC law restricts DC employers from entering into non-compete agreements with employees earning less than $150,000 as of October 1, 2022, whereas the prior iteration of the law would have imposed a near universal ban on...more

Wilson Sonsini Goodrich & Rosati

Electronic Gaming Podcast | Employment Issues - Barath Chari and Jason Storck

What’s the difference between an employee and an independent contractor? Does it matter that you hired an engineer for your game in another country? What’s a PIIA? Wilson Sonsini Partners Jason Storck and Barath Chari know...more

American Conference Institute (ACI)

[Virtual Event] Employment Practices Liability Insurance - January 26th - 28th, 10:15 am - 4:15 pm EST

29th Annual Employment Practices Liability Insurance - ACI’s 29th Annual Employment Practices Liability Insurance conference returns on January 26-28, 2021 in an interactive, virtual format! This yearly conference is the...more

Seyfarth Shaw LLP

Rare First Circuit Decision Invalidating NDA and Overturning Misappropriation Verdict Serves as a Cautionary Tale

Seyfarth Shaw LLP on

In a rare appellate decision on enforceability of non-disclosure agreements and a plaintiff’s burden to establish the existence of trade secrets, the First Circuit recently overturned a district court summary judgment order...more

Winstead PC

Protecting Your Most Valuable Assets: How to Identify and Maintain Your Institution’s Trade Secrets

Winstead PC on

An institution’s trade secrets generally include confidential information with commercial value. Trade secret protection may be available by common law, under state laws, or under federal law. In addition, there may be both...more

Seyfarth Shaw LLP

Fettucine Al Fraudo—New York Pizzaiolo in Hot Water After Alleged Theft of Secret Pasta Recipe

Seyfarth Shaw LLP on

Manhattan restaurant Sottolio, Inc., d/b/a Norma Gastronomia Siciliana hired Giuseppe Manco—“a noted Italian pizza chef, or pizzaiolo”—to consult on its menu. At the same time, Manco and his wife purchased a 9% interest in...more

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

Maryland Prohibits Noncompetes for Low-Wage Employees

A new state law in Maryland now prohibits employers from requiring low-wage employees to enter into noncompete agreements. Maryland Senate Bill 328, which took effect on October 1, 2019, prohibits employers from obligating...more

Smith Debnam Narron Drake Saintsing & Myers,...

Employers, Beware! United States Senate Introduces Bill to Limit Enforceability of Covenants Not to Compete

Effectively drafted restrictive covenants are valuable tools employers can utilize to protect their proprietary interests. Covenants not to compete and covenants not to solicit an employer’s clients or employees are the most...more

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