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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

Gray Reed

Texas Federal Court Blocks FTC's Non-Compete Ban

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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

Mayer Brown

United States: Restrictive Covenants

Mayer Brown on

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

Mayer Brown on

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

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

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

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

Polsinelli on

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

Epstein Becker & Green on

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

Akerman LLP - HR Defense

The Era Of The Non-Compete Agreement Is Ending – Or Is it?

The wait is over, but the fight is just beginning. Will U.S. employers need to break up with non-compete agreements forever? The Federal Trade Commission (FTC) voted “yes” earlier this week in pushing through a Final Rule...more

FordHarrison

FTC Final Rule Bans Most Noncompete Agreements

FordHarrison on

On April 23, 2024, the Federal Trade Commission (FTC) issued its long-awaited final rule, banning virtually all noncompetition agreements between employers and workers. Just as the ink dried, the first lawsuit (of several...more

Gray Reed

Federal Trade Commission Issues Rule Banning Non-Competition Agreements

Gray Reed on

On April 23, 2024, the Federal Trade Commission (FTC) issued a final rule that may affect for-profit employers’ use of post-employment non-competes in the employer/employee context.  Whether this final rule becomes the law of...more

Littler

FTC Issues Final Rule Effectively Banning Workplace Non-Compete Agreements

Littler on

On April 23, 2024, the Federal Trade Commission (FTC) by a vote of 3-2 approved and issued its final rule that effectively bans employers’ use of all non-compete agreements (with very limited exceptions). The final rule is...more

Benesch

The FTC Voted to Enact its Non-Compete Ban - What You Need to Know and What You Need to Do

Benesch on

The FTC has voted to enact its Rule to ban Non-Compete Agreements/Clauses. The vote to enact the Rule comes as no surprise but there were two noticeable changes to the Rule that was originally proposed and the Rule that the...more

Wyrick Robbins Yates & Ponton LLP

State of Confusion: The Complex Present and Uncertain Future of Employee Non-Compete Agreements

It seems like a simple question: Is the covenant not to compete in my employment agreement enforceable?  The answer is much more complex and uncertain than you might think....more

ArentFox Schiff

2023 Trade Secrets End of Year Report

ArentFox Schiff on

2023 was a banner year for trade secrets, non-competes, and other restrictive covenants. Employee non-competes continued to garner attention at the federal agency level, drawing commentary and action from the Federal Trade...more

Epstein Becker & Green

Free to Forfeit: Delaware High Court Holds Employee Choice Is Proper Lens for Evaluating Forfeiture-for-Competition Provisions in...

In a bombshell ruling last year that upended longstanding Delaware law, the Delaware Chancery Court ruled in Ainslie v. Cantor Fitzgerald, L.P., 2023 WL 106924 (Del. Ch. Jan. 4, 2023), that forfeiture-for-competition clauses,...more

Nelson Mullins Riley & Scarborough LLP

New Year Brings Extension of California’s Ban on Non-Competes

On Sept. 1, 2023, California enacted a new law (SB 699, to be codified at Cal. Bus. & Prof. Code sec. 16600.5) reiterating its non-compete ban contained in Section 16600 that is effective Jan. 1, 2024.  New Section...more

Stark & Stark

Employee’s Duty of Loyalty to Employer

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While everyone is undoubtedly aware that an employee is not lawfully permitted to steal from his/her employer, the next logical question concerns what specifically are an employee’s legal obligations during their course of...more

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