As many of our blog readers will know, the enforceability of restrictive covenants often depends on which state’s law applies to the dispute. For example, California is well known for refusing to enforce employee...more
According to a March 26, 2020, News Release issued by the Department of Labor (“DOL”), initial unemployment claims in the United States soared to a seasonally adjusted 3.3 million the week ending March 21, 2020, the greatest...more
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
1/24/2020
/ Antitrust Provisions ,
Competition ,
Contract Terms ,
Corporate Counsel ,
Department of Justice (DOJ) ,
Employment Contract ,
Federal Trade Commission (FTC) ,
FTC Act ,
Hiring & Firing ,
Job Applicants ,
Low-Wage Workers ,
Non-Compete Agreements ,
Public Workshops ,
Restrictive Covenants ,
Rulemaking Process ,
Sherman Act ,
UDAP
Last summer, after a decade of fits and starts, and just minutes before the end of the 2018 legislative session, the Massachusetts legislature finally passed comprehensive non-compete reform, which went into effect on October...more
12/17/2019
/ Confidential Information ,
Contract Terms ,
Employer Liability Issues ,
Employment Contract ,
Exempt-Employees ,
Hiring & Firing ,
Intellectual Property Protection ,
Labor Regulations ,
Legislative Agendas ,
Non-Compete Agreements ,
Physician Assistants ,
Proposed Legislation ,
Restrictive Covenants ,
State and Local Government
As we previously covered, a group of 18 state attorneys general in July filed comments with the Federal Trade Commission (“FTC”), asking the FTC to incorporate labor concerns when reviewing corporate mergers and to use its...more
12/16/2019
/ Antitrust Provisions ,
Competition ,
Confidential Information ,
Contract Terms ,
Employment Contract ,
Federal Trade Commission (FTC) ,
Hiring & Firing ,
Intellectual Property Protection ,
Non-Compete Agreements ,
Regulatory Oversight ,
Restrictive Covenants ,
Sherman Act ,
Trade Secrets
A law firm can terminate an at-will lawyer who refuses to sign an agreement prohibiting them from soliciting the firm’s customers or clients following cessation of employment, according to the Supreme Court of Kentucky. In...more
12/11/2019
/ Appeals ,
At-Will Employment ,
Contract Terms ,
Employer Liability Issues ,
Employment Litigation ,
Hiring & Firing ,
KY Supreme Court ,
Legal Representatives ,
Non-Solicitation Agreements ,
Restrictive Covenants ,
Solicitation ,
Unlawful Practices ,
Wrongful Termination
Following in the footsteps of its neighbors Maine, Massachusetts, and New Hampshire, Rhode Island recently enacted legislation that restricts the use of non-competition agreements with certain types of employees. The Rhode...more
11/6/2019
/ Confidential Information ,
Contract Terms ,
Employer Liability Issues ,
Employment Contract ,
Fair Labor Standards Act (FLSA) ,
Hiring & Firing ,
Intellectual Property Protection ,
Labor Regulations ,
Low-Wage Workers ,
New Legislation ,
Non-Compete Agreements ,
Restrictive Covenants ,
State and Local Government ,
State Labor Laws
Senators Chris Murphy (D-Conn.) and Todd Young (R-Ind.) have introduced legislation entitled the Workforce Mobility Act (“WMA”). The WMA, like its prior incarnation from last year, seeks to ban non-compete agreements outside...more
10/31/2019
/ Confidential Information ,
Contract Terms ,
Employer Liability Issues ,
Employment Contract ,
Hiring & Firing ,
Intellectual Property Protection ,
Labor Regulations ,
Legislative Agendas ,
Low-Wage Workers ,
Non-Compete Agreements ,
Proposed Legislation ,
Regulatory Agenda ,
Restrictive Covenants ,
Rulemaking Process ,
Threshold Requirements
On June 28, 2019, Governor Mills signed LD 733, An Act To Promote Keeping Workers in Maine, into law. The Act places limits on non-compete agreements and bans restrictive employment agreements....more
8/7/2019
/ Confidential Information ,
Contract Terms ,
Employer Liability Issues ,
Employment Contract ,
Hiring & Firing ,
Intellectual Property Protection ,
Low-Wage Workers ,
New Legislation ,
Non-Compete Agreements ,
Non-Disclosure Agreement ,
Restrictive Covenants ,
State and Local Government ,
State Labor Laws ,
Trademarks
On July 11, 2019, Governor Sununu signed S.B. 197 into law. S.B. 197 prohibits an employer from requiring an employee who makes 200% of the federal minimum wage ($14.50) to sign a non-compete agreement restricting the...more
7/17/2019
/ Confidential Information ,
Contract Terms ,
Employment Contract ,
Hiring & Firing ,
Intellectual Property Protection ,
Labor Regulations ,
Low-Wage Workers ,
New Legislation ,
Non-Compete Agreements ,
Pre-Employment Agreements ,
Restrictive Covenants ,
State and Local Government ,
State Labor Laws ,
Trade Secrets ,
Wage and Hour
While it is well-settled law that an attorney cannot be bound by an agreement restricting the right to practice law, that does not insulate attorneys from all restrictive covenants. As we have previously discussed, there are...more
Last week, Florida Senator Marco Rubio introduced the “Freedom to Compete Act” (the “Act”) proposing to amend the Fair Labor Standards Act (FLSA) of 1938 to ban non-competes for most non-exempt workers. ...more
Readers of our blog will recall that this summer, the Massachusetts legislature passed a non-compete reform bill after nearly a decade of fruitless attempts. The new law goes into effect today, meaning that any agreements...more
10/1/2018
/ Confidential Information ,
Contract Terms ,
Employer Liability Issues ,
Employment Contract ,
Garden Leave ,
Hiring & Firing ,
New Legislation ,
Non-Compete Agreements ,
Restrictive Covenants ,
State and Local Government ,
State Labor Laws
This week, after close to a decade of “will they or won’t they” nail biters, the Massachusetts legislature finally passed a non-compete bill, just minutes before the end of the 2018 legislative session....more
8/3/2018
/ Choice-of-Law ,
Confidential Information ,
Employees ,
Employment Contract ,
Exempt-Employees ,
Garden Leave ,
Hiring & Firing ,
Independent Contractors ,
Intellectual Property Protection ,
Legislative Agendas ,
Misappropriation ,
Non-Compete Agreements ,
Pending Legislation ,
Reformation ,
Restrictive Covenants ,
State and Local Government ,
State Labor Laws ,
UTSA ,
Venue
We reported last week that the attorneys generals of ten states are investigating several fast food franchisors for their use of so-called “no poach” provisions in their franchise agreements. ...more
The Attorneys General of ten states are investigating fast food franchisors for their alleged use of “no poach” provisions in their franchise agreements, according to a press release by the New Jersey Attorney General’s...more
Marc McGovern, the mayor of Cambridge, Massachusetts (home to many of the Commonwealth’s established and emerging pharmaceutical, biotech, and other life sciences companies), published an op-ed in the Boston Globe regarding...more
The Massachusetts legislature is back at it again. Under new leadership, the Joint Committee on Labor & Workforce Development recently scheduled a hearing for October 31, 2017 on the non-compete reform bills proposed in...more
Hearkening back to the rivalry between the Boston Celtics and Los Angeles Lakers in the 1980s, Massachusetts courts (as well as others around the country) have increasingly been asked to analyze the application of California...more
Apparently there may be some life left yet in the Massachusetts Legislature’s attempt to pass non-compete reform this year. As we previously reported, the House and the Senate were unable to bridge their differences and...more
Fresh off of signing the Defend Trade Secrets Act, the White House released a report yesterday entitled “Non-Compete Reform: A Policymaker’s Guide to State Policies,” which contains information on state policies related to...more
In what has become a highly anticipated annual game of “Will They/Won’t They,” the Massachusetts legislature again failed to pass comprehensive noncompete reform legislation this year, despite much fanfare and high hopes from...more
On May 5, 2016, the White House issued a report largely piggybacking on a recent U.S. Treasury Department study, on which we previously posted, with a primary focus on the purported misuse and negative impacts of non-compete...more