On August 20, 2024, a judge in the U.S. District Court for the Northern District of Texas granted a nationwide injunction against the Federal Trade Commission’s (“FTC’s”) rule banning non-competes with employees (the “Rule”)....more
8/22/2024
/ Arbitrary and Capricious ,
Employment Contract ,
Federal Bans ,
Federal Trade Commission (FTC) ,
FTC Act ,
Injunctions ,
Lack of Authority ,
Non-Compete Agreements ,
Restrictive Covenants ,
Statutory Authority ,
Texas ,
Unfair Competition
Earlier this year, on April 23, 2024, the Federal Trade Commission (the “FTC”) issued a final rule (the “Final Rule”) barring nearly all non-competition provisions for most workers in the United States. The Final Rule is set...more
Judge Ada Brown in the Northern District of Texas has stayed the effective date of the FTC’s Non-Compete Rule and granted plaintiffs’ motion for preliminary injunction against the Rule, effective July 3, 2024. The court found...more
On April 23, 2024, the Federal Trade Commission (the “Commission”) voted to issue its final rule (the “Final Rule”) barring non-competes for most workers in the United States, with exceptions for non-competes entered into in...more
As we last reported in March, the Federal Trade Commission’s (the “Commission’s”) final vote on its Proposed Rule to Ban Noncompetes (“Proposed Rule”) was slated to take place as early as April 2024. Today, the Commission...more
On May 30, 2023, the National Labor Relations Board’s (the “NLRB’s”) General Counsel Jennifer Abruzzo (the “General Counsel”) issued Memo General Counsel 23-08 (the “Memo”), expansively finding that non‑competes with...more
On May 16, 2023, the Minnesota legislature passed SF 3035 (the “Bill”), banning nearly all post-termination non-compete agreements with employees and independent contractors. Although the Bill marks another state in the trend...more
The General Counsel for the National Labor Relations Board (the “NLRB”) recently issued Memorandum GC 23-05 (the “Memorandum”), expansively interpreting the reach of the McLaren Macomb (“McLaren”) decision and raising more...more
On March 16, 2023, the Delaware Chancery Court in Intertek Testing Services NA, Inc. v. Eastman found a sale-of-business non-compete was overbroad, given its worldwide geographic scope, and refused to modify it to make it...more
On January 5, 2023, the Federal Trade Commission (FTC) issued a proposed rule broadly seeking to ban non-compete agreements with nearly all U.S. workers, with only limited exceptions. The proposed rule would:
•make it...more
20 second read: While courts generally appear to give greater deference to enforcement of sale of business non-competes, at least one Delaware court confirmed that if a court thinks the restrictions go beyond the scope of the...more
On July 12, 2022, the D.C. Council amended the Ban on Non-Compete Agreements Amendment Act of 2020 (the “Amendment”), walking back from an earlier version of the bill that, as we previously discussed, contemplated a nearly...more
Continuing the ongoing trend of states placing restrictions on employee non-competes, on May 10, 2022, the Colorado General Assembly passed a bill amending C.R.S. § 8-2-113 (the “Amendment”) and adding significant limitations...more
5/18/2022
/ Choice-of-Law ,
Choice-of-Venue ,
Colorado ,
Confidentiality Agreements ,
Employer Liability Issues ,
Governor Polis ,
Highly Compensated Employees ,
New Hires ,
Non-Compete Agreements ,
Non-Solicitation Agreements ,
Notice Requirements
On the heels of the bi-partisan introduction of the Workforce Mobility Act in Congress in February 2021, on May 31, 2021, the Illinois General Assembly passed amendments to the Illinois Freedom to Work Act (the “Amendments”)...more
7/1/2021
/ Amended Legislation ,
Attorney's Fees ,
Coronavirus/COVID-19 ,
Employer Liability Issues ,
Employment Contract ,
Governor Pritzker ,
Illinois ,
Non-Compete Agreements ,
Non-Solicitation Agreements ,
State and Local Government ,
State Attorneys General
On January 11, 2021, District of Columbia Mayor Muriel Bowser signed the Ban on Non-Compete Agreements Amendment Act of 2020 (“the Act”), effectively eliminating non-competes in Washington, D.C., except under very limited...more
Last year, jurisdictions across the nation issued new laws and regulations further complicating compliance issues for employers, particularly for multi-state employers. Some of the most significant developments related to new...more
2/24/2020
/ ABC Test ,
Arbitration Agreements ,
Corporate Counsel ,
Employer Liability Issues ,
Independent Contractors ,
Mandatory Arbitration Clauses ,
Misclassification ,
Non-Compete Agreements ,
Paid Leave ,
Pay Discrimination ,
Salary/Wage History ,
State Labor Laws ,
Wage and Hour
On August 10, 2018, Massachusetts’ Governor signed into law the Massachusetts Noncompetition Agreement Act (the “Act”), establishing strict new requirements for noncompetition agreements with employees entered on or after...more