News & Analysis as of

Restrictive Covenants

Cadwalader, Wickersham & Taft LLP

FTC Appeals Recent Losses in Non-Compete Rule Litigation, and Another Litigant Drops Its Challenge

We reported last month that the district court in the northern district of Texas had “set aside” the Federal Trade Commission’s recently finalized rule prohibiting employers from entering into, and enforcing, non-compete...more

Paul Hastings LLP

Recent Developments Affecting Non-Competes and Employee Mobility

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Employers take note: a series of recent developments could impact the way that companies across the country handle non-competition restrictions and retention rules. First, recent developments in the legal challenges to the...more

Fisher Phillips

October’s Spookiest Restrictive Covenant Developments: An Employer’s 5-Ingredient Witches’ Brew to Ward Off Harm

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“Magic words,” “TRAPs,” and the federal non-compete ban rising from the dead? October had several spooky developments in restrictive covenant law, but no need to be frightened! We’ve got you covered with updates, insights,...more

DLA Piper

Be Global: Employment Law in 5 - October 2024

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5 developments to read for October in less than 5 minutes - Prepare: Extensive overhaul of UK workers' rights - The UK government published its Employment Rights Bill 2024. The Bill contains 28 new measures, many of which...more

Robinson & Cole LLP

Legal Update: General Counsel Memorandum Urges NLRB to Find Certain Non-Compete Agreements and Stay-or-Pay Provisions Unlawful

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On October 7, 2024, the National Labor Relations Board’s (Board) General Counsel, Jennifer Abruzzo, issued a memorandum urging the Board to find certain non-compete provisions unlawful and to remedy any related infringement...more

Orrick, Herrington & Sutcliffe LLP

NLRB General Counsel Cracks Down on Stay or Pay Provisions and Calls for Make Whole Remedies

The National Labor Relations Board (NLRB) General Counsel is cracking down on stay-or-pay provisions. Here are takeaways for employers from an October 7 memo: As a reminder, the NLRA only applies to non-supervisory employees,...more

K&L Gates LLP

Navigating the New UAE Competition Law: Moving Towards EU Principles? Part 4—UAE Prohibition on Abuse of Dominant Position and...

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Similarly to the Old Law, the New Competition Law prohibits the abuse of a “dominant position” in the relevant market by any undertaking, including acts or conduct aimed at distorting, lessening, restricting, or preventing...more

Kerr Russell

FTC’s Ban on Covenants Not to Compete Remains on Hold

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The legal arguments advanced in these court cases mainly concern whether the FTC has the statutory authority to enact such a ban. Shortly before the September 4, 2024 effective date of FTC’s ban on covenants not to compete,...more

Epstein Becker & Green

#WorkforceWednesday®: Wizarding and the World of Trade Secrets - Spilling Secrets Podcast - Employment Law This Week®

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This week, on our Spilling Secrets podcast series, our panelists connect the enchantment of Harry Potter with the intricacies of trade secrets and restrictive covenants: Prepare to be spellbound this Halloween as we cast a...more

Saul Ewing LLP

First Circuit Says Massachusetts Non-Compete Agreement Enforceable in California Despite State’s Ban

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Last month, in DraftKings Inc. v. Hermalyn, the First Circuit Court of Appeals issued a decision concerning the application of California’s non-compete ban to agreements formed outside the state. Broadly, the decision...more

BakerHostetler

Adding Injury to Insult: The NLRB’S General Counsel Lays Out Expanded Remedies For Unlawful Noncompete and Stay-or-Pay Agreements

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We previously reported on a May 2023 memorandum issued by the general counsel of the National Labor Relations Board (NLRB or Board), Jennifer A. Abruzzo, stating her view that “the proffer, maintenance, and enforcement” of...more

Polsinelli

Stay Tuned… FTC Seeks to Breathe Life Back Into Non-Compete Ban

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This past week, the FTC appealed a Texas federal court’s August ruling that blocked nationwide enforcement of the non-compete ban. The non-compete ban will remain blocked during the pendency of the appeal process. However,...more

Nutter McClennen & Fish LLP

NLRB General Counsel Says Noncompete and "Stay-or-Pay" Arrangements May Expose Employers to Damages

On May 30, 2023, the National Labor Relations Board’s (NLRB) General Counsel (GC), Jennifer Abruzzo, issued a memorandum setting forth the GC’s position that the proffer, maintenance, or enforcement of noncompete agreements...more

Cranfill Sumner LLP

FTC Appeals Order Striking Down Noncompete Ban

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On October 18, 2024, the Federal Trade Commission (FTC) appealed to the Fifth Circuit a Texas federal court’s decision to strike down the FTC’s nationwide noncompete ban. This comes hot on the heels of the FTC’s September 24,...more

Seyfarth Shaw LLP

No Non-Compete? Maybe not a problem as PepsiCo appears to be alive and well.

Seyfarth Shaw LLP on

In 2016, the Defend Trade Secret Act, 18 U.S.C. § 1836 (the “DTSA”), passed Congress and went into effect. At its heart, it effectively codified the Uniform Trade Secrets Act at the federal level, creating a federal cause of...more

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

Beltway Buzz - October 2024 #4

The Beltway Buzz is a weekly update summarizing labor and employment news from inside the Beltway and clarifying how what’s happening in Washington, D.C., could impact your business....more

Parker Poe Adams & Bernstein LLP

FTC Appeals Blocked Noncompete Rule

The FTC recently appealed a Texas federal court’s decision that blocked its proposed noncompete ban. On October 18, 2024, the agency filed a notice of appeal with the U.S. Court of Appeals for the Fifth Circuit, contesting...more

Genova Burns LLC

FTC Rule On Non-Competes Is Bruised But Not Yet Beaten As FTC Appeals, While NLRB Continues To Challenge Non-Competes

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In April 2024, the FTC issued a Rule declaring invalid most existing non-compete agreements and prohibiting most employers from entering into new non-compete agreements after September 3, 2024, with few exceptions. Three...more

CDF Labor Law LLP

FTC Appeals Injunction Against Final Rule Banning Non-Compete Employment Agreements

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Last Friday, the Federal Trade Commission (“FTC”) gave notice to appeal Judge Brown’s nationwide bar on the FTC’s final rule creating a Non-Compete Ban or enforcement of the rule in the case of Ryan LLC v. Federal Trade...more

BCLP

NLRB General Counsel Targets Non-Competes and Stay-or-Pay Provisions

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Last week, the National Labor Relations Board’s General Counsel Jennifer A. Abruzzo (the “GC”) announced her position that “stay-or-pay” provisions in employment agreements are unlawful under the National Labor Relations Act...more

Benesch

FTC Appeals Noncompete Ban Ruling

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The Federal Trade Commission (“FTC”) has appealed a ruling from a federal court in Texas that blocked its sweeping ban of noncompete agreements. As Benesch previously highlighted in August, a federal district court in Texas...more

Bond Schoeneck & King PLLC

NLRB General Counsel Continues Challenge to Non-Compete Agreements, Announces Position on Sign-On Bonuses and Other “Stay-or-Pay”...

We previously reported that the National Labor Relations Board (NLRB or the Board) General Counsel Jennifer Abruzzo issued a memorandum in May 2023 advancing the position that non-compete agreements between employers and...more

Maynard Nexsen

NLRB’s General Counsel Urges Stricter Guidelines on Non-Competes and “Stay-or-Pay” Provisions

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On October 7, 2024, National Labor Relations Board (NLRB) General Counsel Jennifer Abruzzo released Memorandum GC 25-1 titled "Remedying the Harmful Effects of Non-Compete and 'Stay-or-Pay' Provisions that Violate the...more

Troutman Pepper

FTC Appeals Texas Court’s Decision to Set Aside the Noncompete Ban

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The Federal Trade Commission (FTC) has filed a notice of appeal of the Northern District of Texas’s decision granting plaintiffs’ summary judgment motion and “setting aside” the agency’s rule banning nearly all employee...more

Fisher Phillips

Breaking Down the FTC Non-Compete Ban Appeals: Heading to a Circuit Split and SCOTUS Intervention?

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The Federal Trade Commission has appealed two federal trial court decisions – one in Texas and one in Florida – that prevented the agency from enforcing its near-total ban on non-compete agreements. The Texas appeal, filed on...more

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