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Competition Non-Compete Agreements Corporate Counsel

FordHarrison

Federal District Court Blocks FTC's Noncompete Rule

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Real World Impact: Making good on her promise to make a ruling on the FTC Noncompete Rule on or before August 30, 2024, United States District Judge Ada Brown granted a motion for summary judgment that sets aside the FTC...more

Hendershot Cowart P.C.

FTC Non-Compete Ban Timeline

Hendershot Cowart P.C. on

What's the latest on the legal challenges to the FTC's ban on non-compete agreements? Here is a timeline of the decisions and events leading up to the final rule and the legal challenges since: • January 5, 2023 – The...more

FordHarrison

Noncompete News: Will New York City's Noncompete Ban Beat the FTC Final Rule to the Punch?

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As we recently reported, the Federal Trade Commission (FTC) issued its long-awaited final rule on April 23, 2024, banning virtually all noncompetition agreements between employers and workers. Lawsuits challenging the final...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

Morrison & Foerster LLP

Potential Exceptions Under FTC’s Non-Compete Ban

On April 24, 2024, the U.S. Federal Trade Commission (FTC) promulgated its final rule prohibiting non-competes for most workers in the United States (the “Final Rule”). The Final Rule raises several issues, including...more

Seyfarth Shaw LLP

Analysis of FTC Non-Compete Ban Legal Challenges: Does the Ban Pass Constitutional Muster? (And Other Issues)

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On April 23, 2024, the Federal Trade Commission (FTC) voted in a 3 to 2 decision along party lines to adopt its Final Non-Compete Clause Rule (“Noncompete Rule”) banning post-employment non-compete clauses between employers...more

BakerHostetler

Delaware Supreme Court Settles Forfeiture-for-Competition Question, Adopts Employee Choice Doctrine - Seventh Circuit Asks, ‘Are...

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Less than two months after the Delaware Supreme Court provided the employers, investment partners and other business leaders that trust in the stability of Delaware law to protect their critical business interests with the...more

Ballard Spahr LLP

Is the Delaware Supreme Court Pushing Back on Chancery’s Suspicion of Non-Competes?

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The Delaware Court of Chancery has been increasingly willing of late to strike down non-compete covenants as overbroad, a trend accompanied by a growing unwillingness to “blue pencil” agreements by narrowing terms to what the...more

White & Case LLP

Uncertainty Remains More Than One Year After the FTC Announces New “Unfair Methods of Competition” Policy

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On November 10, 2022, the Federal Trade Commission announced a significant change in how the FTC plans to enforce Section 5 of the FTC Act, which bans "unfair methods of competition in or affecting commerce." In doing so, the...more

Epstein Becker & Green

Preemption Questions Continue as FTC and NLRB Fight Restrictive Covenants

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As federal administrative agencies wade further into rulemaking and adjudicative efforts to outlaw noncompetes and restrictive covenants, defendants are beginning to raise preemption arguments in response to state court...more

Hogan Lovells

Time please - UK government announces Brexit-related employment law changes

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The government has announced that it will not repeal most retained EU law at the end of the year as originally planned. However, it is planning to use Brexit-related freedoms to amend some aspects of the Working Time...more

Littler

UK Follows US FTC Proposal and Issues its Own Non-compete Proposals

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The UK government on May 10, 2023, announced its intention to limit the length of post-employment non-compete clauses (i.e., restrictions prohibiting an employee from going to work for a competitor or to start a rival...more

Morrison & Foerster LLP

Trio of Delaware Cases Signal Stricter Review of Sale-of-Business Non-Competes

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

Verrill

More to Consider Concerning the FTC’s Proposed Rule Prohibiting Non-Competition Clauses

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As previously reported by Verrill attorney Tawny Alvarez in the firm’s “Taking Care of HR Business” blog on January 5, 2023, the Federal Trade Commission (FTC) proposed a rule that, as drafted by the FTC, would both prohibit...more

Poyner Spruill LLP

No More Non-Competes? Not So Fast.

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Employing a tool it has not used before, the Federal Trade Commission (FTC) is proposing to crush employers’ right to enter into noncompetition agreements with employees. On January 5, 2023, the FTC proposed a rule banning...more

Cranfill Sumner LLP

The Federal Trade Commission Announces Proposed Rule Eliminating Most Non-Compete Provisions in Employment Agreements

Cranfill Sumner LLP on

On January 5, 2023, the Federal Trade Commission announced a proposed rule eliminating most non-compete provisions in employment agreements.  The move by the FTC comes one day after the agency announced enforcement...more

A&O Shearman

The FTC Sets its Sights on Noncompete Agreements, Launches First Major Standalone Section 5 Claims

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Last week, the FTC announced two significant moves. First, the FTC brought its first major standalone Section 5 actions, targeting certain companies’ employment noncompete agreements as unfair methods of competition. The very...more

Allen Matkins

Court Of Appeal Affirms Enforceability Of Post-Termination Solicitation Ban In Employment Agreement

Allen Matkins on

California is famously hostile to covenants not to compete.   In fact, Section 16600 of the California Business & Professions Code provides "Except as provided in this chapter, every contract by which anyone is restrained...more

Akin Gump Strauss Hauer & Feld LLP

Noncompete Laws: 2021 Year in Review

Key Points - President Biden’s July 9, 2021 executive order encouraged the FTC to exercise its statutory rulemaking authority to curtail the unfair use of noncompete agreements. Effective March 1, 2022, a person who...more

Proskauer Rose LLP

Low Wage and Employee Classification Limits on Non-Compete Agreements

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Over the past few years, states across the country have sought to limit or reduce the use of employee non-compete agreements. While some states have imposed outright bans on such agreements, many more have passed laws that...more

Foley & Lardner LLP

FTC Announces First Step Towards Regulation of Employee Non-Competes

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As we have noted previously, on July 9, President Biden signed an Executive Order on Promoting Competition in the American Economy. Among many other things, this Executive Order calls on the Federal Trade Commission (FTC) to...more

Sheppard Mullin Richter & Hampton LLP

Ninth Circuit Denies Sherman Act Challenge To No-Poach Provision

In an important decision on August 19, 2021, the Ninth Circuit Court of Appeals in Aya Healthcare Services, Inc. v. AMN Healthcare, Inc. affirmed the grant of summary judgment in favor of AMN, finding that the...more

ArentFox Schiff

The Future of Employment Non-Competes: The Federal Trade Commission Considers Rulemaking and Signals an Appetite for Stricter...

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In short, the petitioners asked for a rule that non-competes are an unfair method of competition that is illegal per se under Section 5(a) of the Federal Trade Commission Act. Further, they asked that any employer presenting,...more

Seyfarth Shaw LLP

A Solution in Search of a Problem? FTC Hosts Workshop to Consider Authority to Abolish Non-Competes

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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

Orrick - Antitrust Watch

Merger Non-Compete Clauses – Be Lawful or Be Gone

Non-compete clauses are commonly included in M&A agreements. Although generally recognized as lawful, non-competes must fulfill certain requirements to comply with antitrust and competition laws. A recent FTC enforcement...more

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