News & Analysis as of

Competition Non-Compete Agreements Contract Terms

WilmerHale

Beating the Odds: First Circuit Doubles Down on Massachusetts Decision Enforcing Noncompete Against Sports Betting Executive Newly...

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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

Franczek P.C.

FTC Ban on Non-Competes Is Blocked — For Now

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Back in April 2024, the Federal Trade Commission (FTC) issued a final rule that would have banned non-compete agreements nationwide as of September 4, 2024. (You can read our alert on the FTC’s final rule here.) However, on...more

Poyner Spruill LLP

FTC’s Non-Compete Ban Is On Hold, For Now

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Earlier this year, we wrote about the Federal Trade Commission (FTC) enacting a final rule to ban most all forms of non-compete agreements between employers and employees in the United States (available here).  The ban was...more

Gray Reed

Texas Federal Court Blocks FTC's Non-Compete Ban

Gray Reed on

On August 20, 2024, Judge Ada Brown of the Northern District of Texas issued her much anticipated order which officially set aside the FTC’s Final Rule Banning Non-Competes (the “Ban”), which we first brought to your...more

Farrell Fritz, P.C.

Unpacking the (Un)Reasonableness of Non-Compete Provisions

Farrell Fritz, P.C. on

New York law generally does not favor non-compete agreements, viewing them as unreasonable restraint of trade. As a result, New York courts apply a rigorous standard when deciding whether to enforce these restrictive...more

Mayer Brown

United States: Restrictive Covenants

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The enforceability of restrictive covenants in the United States is currently governed by state law, although that may change if federal rules or legislation are enacted to address such covenants. State laws regarding...more

Mayer Brown

Hong Kong: Restrictive Covenants

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Restrictive covenants with the sole aim of preventing competition will not be upheld by Hong Kong courts. In cases where there is a legitimate interest to be protected, restrictive covenants must be reasonable and not go...more

PilieroMazza PLLC

Texas Court Order Imperils FTC’s Forthcoming Non-Compete Ban

PilieroMazza PLLC on

On July 3, 2024, the District Court for the Northern District of Texas stayed enforcement of the Federal Trade Commission’s (FTC) impending ban on non-compete agreements between employers and employees (the Rule) pending the...more

Lathrop GPM

Minnesota State Court Grants Franchisor’s Motion for Preliminary Injunction Enjoining Franchisee from Violating Post-Termination...

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A state trial court in Minnesota granted Renters Warehouse USA, LLC’s motion for a temporary injunction, and enjoined Life Property Managers, LLC (LPM) from violating its post-termination obligations and a covenant not to...more

Parker Poe Adams & Bernstein LLP

What Physicians and Their Practices Need to Know About FTC's Noncompete Ban

On April 23, the Federal Trade Commission (FTC) approved a long-anticipated final rule that will effectively ban the use of noncompete clauses by employers, with a few limited exceptions....more

Lathrop GPM

New Jersey Federal Court Partially Enforces Noncompete Covenant Against Former Franchisee

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A federal court in New Jersey recently granted a franchisor’s motion for a preliminary injunction, enjoining the former franchisee from using the franchisor’s marks and violating the franchise agreement’s noncompete clause,...more

Sterne, Kessler, Goldstein & Fox P.L.L.C.

FTC Issues Final Rule Banning (Almost All) Non-Compete Agreements

On May 7, 2024, the Federal Trade Commission (FTC) issued a Final Rule that renders invalid non-compete clauses in standard employment agreements. 16 C.F.R. § 910. Although some limited exceptions apply, this new regulation...more

Sands Anderson PC

Five Things You Should Know About the FTC’s Ban on Noncompetes

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The Federal Trade Commission (FTC) rattled the business world last month when it issued a rule that would nullify most noncompete agreements. Within 24 hours, the FTC was sued by two different parties that argued the agency...more

Carlton Fields

Court Direction on FTC’s Noncompete Ban Expected This Summer

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The U.S. District Court for the Eastern District of Texas has issued an aggressive scheduling order that “should allow prompt resolution of” one of the initial challenges to the FTC’s noncompete ban “with sufficient time,...more

Shumaker, Loop & Kendrick, LLP

Client Alert: Federal Trade Commission Votes to Ban Non-Competes

On April 23, 2024, the Federal Trade Commission (FTC) voted—and approved—a final rule to ban almost all non-competition agreements in the country....more

Winthrop & Weinstine, P.A.

FTC Issues Final Rule Banning Non-Competes

Over a year after it proposed a rule banning virtually all non-compete agreements, the Federal Trade Commission (“FTC”) voted to issue its long-awaited final rule.  The final rule is substantially the same as the proposed...more

Morris James LLP

Delaware Supreme Court Upholds Forfeiture for Competition Provision in Partnership Agreement

Morris James LLP on

Cantor Fitzgerald, L.P., v. Ainslie, No. 162, 2023 (Del. Jan. 29, 2024) - Here, a limited partnership agreement authorized the partnership to withhold distributions owed to a partner who withdraws from the partnership and...more

Polsinelli

FTC Final Rule Banning Most Non-Competes Passes – What You Need to Know

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On April 23, 2024, the Federal Trade Commission (“FTC”) conducted a special Open Commission Meeting to vote on a Final Rule (the “Rule”) banning most non-compete clauses as an “unfair method of competition.” By a vote of 3-2,...more

Ballard Spahr LLP

FTC Votes to Ban Noncompete Agreements in Employment Contracts

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The Federal Trade Commission (FTC) voted to issue a final rule that would prevent most employers from enforcing noncompete agreements against workers, with only limited exceptions for existing noncompetes with senior...more

Quarles & Brady LLP

FTC Seeks to Ban Most Non-Compete Agreements

Quarles & Brady LLP on

On April 23, 2024, the Federal Trade Commission (FTC) voted 3-2 to issue a final rule that bans the use of non-compete agreements between employers and their “workers.”...more

Troutman Pepper

FTC Bans Employee Noncompete Clauses

Troutman Pepper on

The Federal Trade Commission (FTC) voted along party lines (3 to 2) to ban all worker noncompetition provisions. The final rule applies to all employees, including senior executives, and will become effective 120 days after...more

Stinson LLP

FTC Bans Worker Non-Competes

Stinson LLP on

By a vote of 3-2, the Federal Trade Commission (FTC) passed the final version of its much-talked-about non-compete rule. The final rule hews closely to the proposed rule, effectively banning all existing or future non-compete...more

Seyfarth Shaw LLP

FTC Non-Compete Ban: What You Need to Know

Seyfarth Shaw LLP on

On April 23, 2024, the FTC announced its Final Non-Compete Clause Rule (“Final Rule”), which bans post-employment non-compete clauses between employers and their workers. The Final Rule becomes effective 120 days after being...more

Stradling Yocca Carlson & Rauth

On the Horizon – Understanding The FTC’s Final Rule Banning Most Non-Competes

On April 23, the Federal Trade Commission (“FTC”) voted to issue a final rule banning non-compete clauses nationwide with limited exceptions (the “Final Rule”).  The unpublished Final Rule is available...more

Epstein Becker & Green

The FTC Finally Pulls the Trigger on a Final Noncompete Rule, with a Few Changes, but Remains Unlikely to Ever Hit Its Target

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As expected, the Federal Trade Commission (FTC) voted 3-2 yesterday to issue its final noncompete rule, with only a few changes from the proposed rule that are discussed below. Unless it is enjoined, which we expect, the rule...more

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