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Littler

Global Non-Compete Reform – At a Glance: December 2023

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The US is not the only country currently debating reform to the law on non-competes. Notably the UK Government has announced legislation which would limit the duration of non-competes to a period of 3 months after the...more

Seyfarth Shaw LLP

50 State Desktop Reference - What Businesses Need to Know about Non-Competes and Trade Secrets Law

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Introduction - As we enter a new era of business landscape dynamics, Seyfarth Shaw is pleased to present the latest edition of our annual cornerstone publication. This comprehensive 50-State Non-Compete Desktop Reference,...more

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

SEC Fines Private Employer for Language in Employee Separation Agreements That Restricted Whistleblower Awards

The U.S. Securities and Exchange Commission (SEC) recently settled charges alleging that a company’s employee separation agreements restricted former employees from receiving monetary awards for reporting securities law...more

Latham & Watkins LLP

New Minnesota Law Bans Most Post-Employment Non-Competes: 6 Key Takeaways

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Minnesota has enacted one of the strictest state non-compete laws in the US, banning almost all post-termination non-competes between employers and their employees and between employers and certain independent contractors...more

Bond Schoeneck & King PLLC

A Ban For Some, But Not All: Exception to the FTC’s Proposed Ban on Non-Compete Clauses

The Federal Trade Commission (FTC) sent a shockwave through the corporate world on Jan. 5, 2023, when it released a proposed regulation banning non-compete clauses in all but extremely limited circumstances. The proposed...more

Seyfarth Shaw LLP

Answering the $296 Billion Question: FTC’s Proposed Rulemaking on Worker Non-Competes Likely to be Found Unconstitutional

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As our colleagues have previously reported in this blog, on January 5, 2023, the Federal Trade Commission issued a notice of proposed rulemaking (NPRM) concerning its unprecedented effort to ban all non-compete clauses with...more

Brownstein Hyatt Farber Schreck

The Federal Trade Commission Proposes Ban on Employer-Worker Non-Compete Agreements

On Jan. 5, 2023, the Federal Trade Commission (FTC) issued a Notice of Proposed Rulemaking (Proposed Rule) seeking to categorically ban nearly all employer non-competition agreements nationwide. If passed in its draft form,...more

BakerHostetler

Delaware Court Raises Eyebrows by Striking Down Noncompete in Sale Transaction

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The Delaware Court of Chancery (the Court) has raised eyebrows with a recent decision, in the case of Kodiak Building Partners, LLC v. Adams, to strike down a noncompetition covenant binding upon a seller in a sale...more

Robinson & Cole LLP

Buyer Beware: Delaware Court of Chancery Declines to Blue-Pencil Restrictive Covenant in M&A Transaction

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On October 6, 2022, in Kodiak Building Partners, LLC v. Philip D. Adams, C.A. No. 2022-0311-MTZ (Oct. 6, 2022), the Delaware Court of Chancery found that a restrictive covenant entered into in connection with an asset...more

PilieroMazza PLLC

Non-Compete Agreements: What Employers and Healthcare Providers Should Know

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Non-compete clauses are a common component in employment agreements for many businesses and healthcare providers. Employers and healthcare providers, ranging from large public hospitals and Fortune 500 companies to small...more

Proskauer Rose LLP

Low Wage and Employee Classification Limits on Non-Compete Agreements

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Over the past few years, states across the country have sought to limit or reduce the use of employee non-compete agreements. While some states have imposed outright bans on such agreements, many more have passed laws that...more

Stoel Rives - World of Employment

Oregon Legislature Further Limits Employee Non-Competition Agreements, Including Imposing a 12-Month Limit on Duration

Over the last several years, the Oregon Legislature has whittled away employers’ ability to enforce employee non-competition agreements (see our posts from 2007, 2015).  Senate Bill 169, which Governor Brown signed into law...more

Saiber LLC

SDNY Rules that Trump Campaign Non-Disclosure is too Broad to Enforce

Saiber LLC on

In another strike against restrictive covenants in employment contracts, Judge Paul G. Gardephe of the Southern District of New York ruled in Jessica Denson v. Donald J. Trump For President, Inc. that the non-disclosure and...more

Sheppard Mullin Richter & Hampton LLP

Don’t Neglect Forum Selection and Choice of Law Provisions When Drafting or Litigating Restrictive Covenants

Employment agreements with restrictive covenants typically contain both a forum selection clause, which determines the forum where a dispute must be heard, and a choice of law clause, which determines the law that applies to...more

Littler

Revisiting Restrictive Covenants in a Commercial Setting: The California Supreme Court Applies a Less Aggressive Approach

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California is known for having the most aggressive approach among the states regarding restraints on profession, trade, and business. Specifically, California Business and Professions Code section 16600 codifies this...more

ArentFox Schiff

The Future of Employment Non-Competes: The Federal Trade Commission Considers Rulemaking and Signals an Appetite for Stricter...

ArentFox Schiff on

In short, the petitioners asked for a rule that non-competes are an unfair method of competition that is illegal per se under Section 5(a) of the Federal Trade Commission Act. Further, they asked that any employer presenting,...more

Seyfarth Shaw LLP

A Solution in Search of a Problem? FTC Hosts Workshop to Consider Authority to Abolish Non-Competes

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Within the last five months, the two executive arms responsible for enforcing antitrust laws—the US Department of Justice (“DOJ”) and the Federal Trade Commission (“FTC”)—held public workshops to examine the effect of...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

Epstein Becker & Green

Lucky Seven: Rhode Island the Seventh State to Pass a Statute Governing Non-Compete Agreements During 2019

Epstein Becker & Green on

Rhode Island is the latest state to jump on the bandwagon of limiting the application of non-compete agreements, with its Rhode Island Noncompetition Agreement Act (the “Act”)....more

Ballard Spahr LLP

Maryland Joins Trend Banning Noncompete Agreements for Low-Wage Workers

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Maryland employers are now prohibited from enforcing non-compete agreements against employees earning less than $15 per hour or less than $31,200 per year. SB 328 became effective October 1, 2019, making such noncompete...more

White and Williams LLP

Signed, Sealed, Delivered, I’m (Not) Yours: How a Lapse in Record Keeping Can Lead to Non-Binding Contracts

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Usually, once a contract is signed, sealed and delivered, it is a binding agreement between the parties. However, a recent Delaware case serves as a reminder that a murky path to a signed agreement and lack of good...more

Orrick - Trade Secrets Group

Use Of Out-Of-State Restrictive Covenants Ending Quickly In California

Two years ago, TSW reported on several cases in which corporations outside of California successfully enforced non-compete agreements against California employees.  They did so by using employment agreements containing...more

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

Separating the Good From the Bad: UK Supreme Court Clarifies “Blue Pencil” Test in Restraint of Trade Cases

On July 3, 2019, in a long-awaited judgment the Supreme Court of the United Kingdom clarified the correct approach to deciding whether words can be severed from a post-employment covenant to leave an employee bound by the...more

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

Oregon Modifies Noncompete Law for 2020

On May 14, 2019, Oregon Governor Kate Brown signed House Bill (HB) 2992, which imposes a new burden on employers that want to have enforceable noncompetition agreements with their Oregon employees. For any noncompetition...more

Littler

Washington State Enacts Comprehensive Noncompete Reform

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On May 8, 2019, Washington Governor Jay Inslee signed Engrossed Substitute House Bill 1450 (HB 1450), radically altering the law governing noncompetition agreements and moonlighting prohibitions in Washington State....more

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