A judge in the U.S. District Court for the Eastern District of Pennsylvania declined on July 23 to enjoin the Federal Trade Commission’s (FTC’s) ban on non-compete agreements. ATS Tree Services, LLC v. FTC, Case No....more
On July 3, 2024, Non-Compete Agreementa federal judge in Texas issued a preliminary injunction that stays the US Federal Trade Commission’s (FTC) near-total ban on non-compete agreements for the named plaintiffs seeking to...more
The Federal Trade Commission (FTC) voted 3-2 on April 23 to issue its final noncompete rule. The Rule becomes effective in 120 days. However, it already has been challenged in federal court in the State of Texas, and more...more
California Assembly Bill 1076, passed last fall, added a new Business & Professions Code §16600.1. By February 14, 2024, California employers must notify in writing current and certain former employees that any noncompete...more
Early in the New Year we often see employees switching jobs, which can trigger disputes over restrictive covenants in their employment agreements. As 2023 draws to a close, here are some things to keep in mind to protect your...more
Following on the proposed rule of the FTC on non-competes, another federal threat to non-competes has emerged, this time from the National Labor Relations Board (NLRB)....more
The Federal Trade Commission (FTC) voted to extend the public comment period for its proposed new rule that would ban certain employee non-competes. The new deadline for public comments on the proposed rule is April 19, 2023....more
Non-compete agreements – contract clauses, usually in employment agreements, that ban an employee from working in a certain industry, or in a certain geographic area for a period of time following termination of employment –...more
As reported in prior blogs, the Illinois legislature for several months has been considering amendments to the Illinois Freedom to Work Act that apply to non-compete and non-solicitation restrictions. SmithAmundsen attorneys...more
Effective May 25, 2021, the State of Nevada enacted amendments to the Nevada Unfair Trade Practice Act that address non-compete agreements. Prior to the new amendments, Nevada law provided that a non-competition covenant is...more
Over the past several years, the State of Oregon has enacted significant statutory limits on non-compete agreements. Under ORS 653.295, as in effect until recently, a non-compete was “voidable and [could] not be enforced by a...more
Historically, a majority of states have allowed employers to use restrictive covenants with physicians—and only a handful of states (among them: Delaware, Massachusetts, and Rhode island) have prohibited that practice in...more
In the typical non-compete lawsuit, an employer seeks to block the defendant, often an ex-sales representative, from calling on or doing business with the company’s clients. However, in some cases, the defendant succeeds in...more
In recent years, many states have enacted legislation directed at employment contracts containing non-compete and non-solicitation clauses. Illinois first did so in 2016 with the Freedom to Work Act (the Act), which bans...more
Early in the New Year we often see employees switching jobs, which can trigger disputes over restrictive covenants in their employment agreements....more