Enforceability of Physician Non-Compete Agreements
The Delaware Supreme Court’s decision in Sunder Energy, LLV v. Jackson, No. 455, 2023, 2024 Del. LEXIS 407 (December 10, 2024) reaffirmed the courts’ limited willingness to modify or “blue-pencil” overbroad restrictive...more
Against a growing trend of legislation and broader efforts seeking to limit or eliminate post-employment noncompetition restrictions, recent Massachusetts and First Circuit decisions in a dispute between DraftKings and one of...more
October 6, 2024 marks the two-year anniversary of Kodiak Building Partners, LLC v. Adams—the case in which the Delaware Chancery Court refused to enforce a sale-of-business non-compete against an executive who received $1...more
Since it was first published in April, the fate of the Federal Trade Commission’s (FTC) final non-compete rule has been, to put it mildly, less than certain. Now, about a month before the rule is scheduled to take effect, the...more
The Federal Trade Commission (“FTC”) voted and approved the issuance of a final rule, the Non-Compete Clause Rule, that, if it goes into effect, will make future employment non-compete agreements unenforceable and will...more
In a Special Open Commission Meeting, the Federal Trade Commission voted to approve the final rule to ban non-compete agreements for for-profit businesses, the effective date of such ban being in 120-days....more
Ohio has long recognized the enforceability of non-compete agreements. Broadly speaking, a court can do one of three things with an unenforceable non-compete agreement: (1) the court can apply the “red pencil” doctrine and...more
Most employers know that California has for decades prevented enforcement of employee non-competition and customer non-solicitation agreements. Some companies with California operations modify their agreements with employees...more
The Florida Legislature is currently considering two bills that, if enacted in their current form, would significantly reduce (and potentially eliminate altogether) the enforceability of noncompete agreements against...more
On January 29, 2024, the Delaware Supreme Court unanimously reversed a major Delaware Chancery Court decision that had analyzed the “forfeiture for competition” provisions in a limited partnership agreement using a...more
For decades, California has taken arguably the most pro-employee-mobility position on noncompetition and non-solicitation agreements in the country – generally, post-employment noncompetition and non-solicitation agreements...more
The Georgia Court of Appeals just made it significantly more difficult for employers to enforce employee non-solicitation provisions, which might require you to take immediate action to protect your company’s interests in...more
Louisiana regulates noncompete agreements by statute. The statute declares that a noncompete is invalid unless the agreement complies with at least one of several exceptions based on the type of relationship. ...more
Earlier this month, the Federal Trade Commission (FTC) voted 4-0 to extend its March 20th deadline for public comments on its controversial proposed rule to ban employee non-competition clauses (non-competes). The Commission...more
In February 2023, new legislation was proposed in the California State Assembly that, if adopted and signed into law by Governor Gavin Newsom, could have a significant impact on employers and their attorneys providing advice...more
The Federal Trade Commission (FTC) rang in 2023 by zeroing in on a new target: non-competes. On January 5, the FTC announced a new proposed rule banning the use of non-compete provisions in agreements with individuals....more
On January 5, 2023 the Federal Trade Commission (“FTC”) proposed a rule to ban most non-compete agreements (“non-competes”) for American workers. The text of the proposed rule is broad: provisions that prevent workers from...more
On January 5, 2023, the Federal Trade Commission (“FTC”) proposed a new rule which would effectively ban all non-compete agreements between employers and “workers” (defined under the rule to include employees, independent...more
The Federal Trade Commission (FTC) proposed a rule on Jan. 5, 2023, prohibiting non-competition clauses ("non-competes") in employment agreements. For purposes of the rule, non-compete provisions include explicit and de facto...more
On January 5, 2023, the United States Federal Trade Commission (“FTC”) proposed a new rule (the “Proposed Rule”) that — if implemented — could dramatically restrict the use of non-compete agreements throughout the United...more
The Federal Trade Commission’s (“FTC”) threats of “cracking down” on non-competition agreements transformed into actual action with two dramatic moves this week. First, on January 4, the FTC ordered three companies,...more
Yesterday, the Federal Trade Commission (“FTC”) proposed a far-reaching rule that, if adopted, would ban employers from imposing non-compete agreements on their workers. A non-compete clause is a contractual term between an...more
In Louisiana, restrictive covenants—known locally as “no competes”—are unenforceable by statutory default. The applicable statute declares, “Every contract or agreement, or provision thereof, by which anyone is restrained...more
For CPAs, restrictive covenants — in the form of non-competition and non-solicitation agreements — are part of life. Most firms, and most CPAs, understand that these restrictive covenants are enforceable to varying degrees....more
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