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Baker Botts L.L.P.

Court Strikes Down FTC’s Non-Compete Ban

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On July 10, 2024, we sent you an update informing you that Judge Ada Brown of the United States District Court for the Northern District of Texas had entered a preliminary injunction blocking the Federal Trade Commission...more

Littler

Texas Court Sets Aside the FTC’s Non-Compete Rule with Nationwide Effect

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Employers that rely on non-compete agreements to protect their trade secrets and other legitimate business interests got some welcome news on August 20. The Federal Trade Commission’s (FTC) final non-compete rule, which seeks...more

Stinson LLP

FTC Ban on Worker Non-Competes Halted by Federal Court

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On August 20, 2024, a Texas federal court judge issued an order halting the Federal Trade Commission's (FTC) non-compete rule, preventing it from taking effect on September 4, 2024. The order, issued by Judge Ada Brown, held...more

Polsinelli

Texas Federal Judge Blocks FTC Non-Compete Ban

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This week, Judge Ada E. Brown of the U.S. District Court for the Northern District of Texas in Ryan v. The Federal Trade Commission upheld a challenge by business groups to the FTC’s non-compete ban. In addition to confirming...more

Lowndes

FTC Non-Compete Ban is Banned

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On August 20, 2024, a federal court in Texas permanently blocked the Federal Trade Commission's (FTC) final rule banning most non-competes. U.S. District Judge Ada Brown granted summary judgment in favor of the plaintiffs in...more

Robinson+Cole Health Law Diagnosis

A Federal Court in Texas Strikes Down the FTC’s Nationwide Non-Compete Ban

On August 20, 2024, the United States District Court for the Northern District of Texas (Dallas Division) struck down the Federal Trade Commission’s (FTC) non-compete rule, 16 CFR § 910.1-6, that was set to take effect...more

Stradling Yocca Carlson & Rauth

Texas Court Holds ‘Em Off: FTC’s Impending Ban On Non-Competes Likely To Fold

On Tuesday, August 20, a Texas federal judge set aside the FTC’s “Non-Compete Rule” (the “Rule”).  This decision comes just two weeks before the FTC’s nationwide ban on non-competes was set to take effect.  The Court stated...more

Hinckley Allen

Texas Court Invalidates FTC Noncompete Ban: Key Takeaways

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On August 20, a federal court in Texas issued an order invalidating the Federal Trade Commission’s (FTC) ban on noncompete agreements (Final Rule), which had been set to take effect on September 4, 2024. The decision, issued...more

Vinson & Elkins LLP

“No More Non-Competes,” Part Four: Texas Federal District Court Blocks FTC Noncompete Rule on Nationwide Basis

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On August 20, 2024, the U.S. District Court for the Northern District of Texas entered a final judgment (“Order”) setting aside, on a nationwide basis, the Federal Trade Commission (“FTC”) final rule (“Rule”) prohibiting...more

CDF Labor Law LLP

Court Issues Nationwide Injunction Against FTC’s Noncompete Ban

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As of yesterday afternoon, employers across the country that utilize noncompete agreements may breathe a sigh of relief, as Judge Ada Brown beat her self-imposed deadline of August 30, 2024 and ordered an end to any...more

Bodman

FTC Non-Compete Ban Blocked ˗ For Now

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In a widely anticipated ruling, Judge Ada E. Brown of the United States District Court for the Northern District of Texas sided with the U.S. Chamber of Commerce and a Texas-based tax firm to block the FTC’s Final Rule...more

FordHarrison

If The FTC Ban On Non-Competes Is Not Enjoined, What Is Your Company's "Plan B"?

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The Federal Trade Commission (FTC) issued an extremely broad Final Rule banning most non-competes. As expected, there have been multiple court challenges to the Final Rule, but, to date, no court has issued a nationwide...more

Polsinelli

Lawsuits Filed Challenging the FTC’s Final Rule Banning Non-Competes

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To date, three lawsuits have been filed challenging the legality of the FTC’s Final Rule banning non-competes. The initial two cases were filed in Texas federal court, which is widely viewed as a more hospitable forum for...more

White & Case LLP

Notice May Be Required for California Employees Subject to Non-Competes

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California passed new laws reiterating its prohibition on employment-related non-competition obligations. Assembly Bill 1076, effective January 1, 2024, provides that it is unlawful to include noncompete clauses in employment...more

Seward & Kissel LLP

Employment Litigation Roundup: November 2023

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Ex-employee’s golf outing with customer does not violate non-solicit - An auto parts manufacturer in Michigan sought a preliminary injunction against a former sales employee for violating his restrictive covenants,...more

Seyfarth Shaw LLP

Emergency Injunction Not in the Cards? Damages May Be Your Winning Hand

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As we have previously reported, courts across the country are adjourning most appearances, including trials, and hearing only “emergency matters” during the current COVID-19 crisis. ...more

Seyfarth Shaw LLP

Massachusetts’ High Court Pumps the Brakes on Equitable Tolling of Restrictive Covenant

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For the first time in 15 years, the Supreme Judicial Court (“SJC”), Massachusetts’ highest court, issued a decision analyzing the enforceability of non-solicitation covenants, the distinction between such covenants in the...more

Holland & Knight LLP

California District Leads Nation in Trade Secret Litigation

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A recent report from Lex Machina, an IP litigation research company, shows that the United States District Court for the Central District of California had more trade secret lawsuits in the last decade than any other district...more

Jackson Lewis P.C.

Good Will Warrants Injunction Says District of New Jersey

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On February 15, 2017, the U.S. District Court for the District of New Jersey in Menasha Packaging Co., LLC v. Pratt Indus., No. 17-0075, 2017 U.S. Dist. LEXIS 22318 (D.N.J. Feb. 15, 2017) granted a preliminary injunction in...more

Dorsey & Whitney LLP

Question #273: Crafting a Concrete Non-Compete

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Question: Our company uses non-compete and non-solicit agreements that bar former employees from having contact with any client of our company after they leave. One former employee who recently left is now claiming the...more

Snell & Wilmer

Ten Questions To Ask Your Client Before Seeking To Enforce A Restrictive Covenant Or Confidentiality Agreement

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The phone rings on a Wednesday afternoon. In a panic, your longtime client explains that a hotshot employee has unexpectedly fled to a competitor a few months before the launch of a top secret new product. The client is...more

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