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The FTC’s Rule Banning Non-Compete Agreements | What You Need to Know
Today the Federal Trade Commission (FTC) voted to finalize a new rule to prohibit employers from enforcing noncompetes against employees. Highlights of the new rule include...more
The Federal Trade Commission, voting 3-2 along party lines, adopted a Final Rule banning non-compete agreements. The Final Rule allows some narrow exceptions (based both on time and circumstances) but prospectively prohibits...more
Occam's Razor holds that sometimes the simplest explanation is the right one. On April 23, 2024, the U.S. Federal Trade Commission ("FTC") took such a view, announcing in a 3-2 vote along party lines that, as the U.S. agency...more
In the evolving retail landscape, where competition is fierce and intellectual property is paramount, the use of restrictive covenants has long been a cornerstone for protecting proprietary information and safeguarding...more
For years there has been much discussion in the Netherlands about the non-compete clause, which also includes the non-solicitation clause. These clauses were often included in employment contracts, restricting employees’...more
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
A federal court in Pennsylvania has held that a confidentiality agreement signed five months after an employee was hired can be enforced after the employee leaves even if the employee received no consideration other than...more
As many know, restrictive covenant law is in a constant state of flux and varies considerably from state to state. Moreover, restrictive covenant law changes frequently and often requires a fact-specific analysis. Over the...more
A proposed law banning virtually all covenants not to compete (also known as non-compete agreements) is headed to the Minnesota State Senate and House of Representatives, where it is widely expected to pass. Once it arrives...more
This week, we bring you our special Spilling Secrets podcast series on the future of non-compete and trade secrets law. An employer often overlooks training employees on what their restrictive covenant means and how to honor...more
Governor J.B. Pritzker recently signed into law Public Act 102-0358 (“Act”), which dramatically reforms the law in Illinois governing both noncompete and nonsolicit provisions. The Act is not retroactive, and goes into effect...more
It’s no secret that Illinois courts have historically been less than friendly to restrictive covenants, and non-compete agreements in particular. On August 13, 2021, Governor JB Pritzker signed into law Public Act 102-0358,...more
On August 13, 2021, Illinois Governor J.B. Pritzker signed into law an amendment to the Illinois Freedom to Work Act (820 ILCS § 90), which imposes restrictions on the use of non-competition and non-solicitation (employee and...more
Executive Summary: The Georgia Restrictive Covenants Act (O.C.G.A. § 13-8-50, et seq.) (“RCA”) governs restrictive covenant agreements in Georgia entered into after May 2011. The RCA expressly addresses non-compete,...more
For the first time in 15 years, the Supreme Judicial Court (“SJC”), Massachusetts’ highest court, issued a decision analyzing the enforceability of non-solicitation covenants, the distinction between such covenants in the...more
Most employers use contracts to protect their customer relationships and proprietary information from unfair competition by employees. They must. If they do not, they may lose their ownership rights in such business...more
A recently passed Florida law, Florida Statutes 542.336 seeks to prevent medical providers from using restrictive covenants to monopolize medical specialties in rural counties. The law bars the enforcement of “restrictive...more
There are many notable east coast-west coast rivalries. In sports (Celtics versus Lakers basketball), in leisure (Atlantic versus Pacific beaches), or in food (Shake Shack versus In-N-Out Burger), to name a few. With respect...more
The Ninth Circuit recently certified a question to the California Supreme Court regarding the scope of California Business & Professions Code Section 16600. As TSW readers are likely aware, Section 16600 states that “[e]very...more
Savvy employers understand and use restrictive covenants, particularly noncompete and nonsolicitation agreements, as part of a strategy to protect their businesses. However, these agreements are good only if they are...more
Last November, we discussed the potential impact of a recent California appellate court decision, AMN Healthcare, Inc. v. Aya Healthcare Services, Inc., 28 Cal. App. 5th 923 (2018), which called into question long-standing...more
In Seyfarth’s first installment in its 2019 Trade Secrets Webinar Series, Seyfarth attorneys Michael Wexler, Robert Milligan, and Joshua Salinas reviewed noteworthy cases and legal developments from across the nation over the...more
A recent court decision underscores the need for manufacturers to exercise caution when seeking to impose Post-Employment Restrictions on key employees....more
Non-solicitation agreements are commonly used by employers to restrict former employees from soliciting clients following termination of the employment relationship. Courts throughout the country have different takes on the...more
Effective January 1, 2016, Alabama passed a new non-compete and non-solicitation statute, repealing § 8-1-1 of the Alabama Code (the "New Act"). The New Act attempts to codify principles the Alabama courts have previously...more