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What's the Tea in L&E? Alert: Non-Compete Agreements Largely Banned by New FTC Rule
In June 2023, the Georgia Court of Appeals held in North American Senior Benefits, LLC v. Wimmer that an employee non-solicitation covenant must contain an express geographic limitation to be enforceable. On September 4,...more
Jimmy Buffett once eloquently said that “without geography, you’re nowhere.” But how does that insight apply to restrictive covenants that lack explicit geographic limitations in Georgia? While Jimmy never got to find out,...more
In the recent case of Moxie Communications Limited v. Lai Cheuk Lok [2024] HKDC 1323, an employer (the "Company") sought to enforce two post-termination restrictive covenants ("PTRs") against a former employee (the...more
On August 14, Judge Corrigan for the Middle District of Florida, in Properties of the Villages vs. FTC, found that the FTC did not have the authority to enter its planned Noncompete Rule, and entered an order granting an...more
Courts and lawmakers around the country are constantly refining the laws on non-competition, non-solicitation, and non-disclosure agreements, which means employers need to stay up to speed in order to prevent unfair...more
A recent decision by EDVA District Judge Henry Hudson granting a preliminary injunction to a wealth management firm against four of its former employees who left to open a competing firm is a good example of the speed of the...more
On July 23, 2024, Pennsylvania Governor Josh Shapiro signed the Fair Contracting for Health Care Practitioners Act (the “Act”), which bans certain noncompete covenants, including patient nonsolicitation provisions, between an...more
AT A GLANCE - Restrictive covenants are a common feature in an employment context, especially for senior employees with special trade connections or who have access to trade secrets....more
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
AT A GLANCE - Restrictive covenants are aimed at protecting the company’s economic interests for a short period of time after the termination of the employment relationship....more
AT A GLANCE - Employees in Germany are subject to statutory non-competition and non-solicitation obligations during an employment relationship. Similar statutory restrictions apply to directors and board members as long as...more
AT A GLANCE - The only post-employment restrictive covenant explicitly stipulated under the People’s Republic of China’s (PRC) labour laws is the non-compete restrictive covenant. The employer and the employee may agree on...more
AT A GLANCE - Despite Brazilian law providing no specific regulations on restrictive covenants, post-termination restrictive covenants are valid in Brazil, particularly among key employees who have valuable connections,...more
Employers in Oregon and across the U.S. are struggling to understand how to respond to recent conflicting decisions around noncompete clauses, which restrict workers from changing jobs in the same industry. Originally...more
Employers’ use of non-compete agreements have been subject to increasing scrutiny from federal agencies in the past year or so. More recently, the balance of discussion surrounding regulatory efforts to curtail the use of...more
On June 26, 2024, Rhode Island Governor Dan McKee vetoed a bill that would have banned nearly all noncompetes and customer non-solicits in the State of Rhode Island....more
Does the Federal Trade Commission’s (FTC) ban on non-compete clauses apply to non-solicitation clauses? It depends. The FTC ban on non-compete clauses can apply to non-solicitation agreements. However, only those that are so...more
Part 2 of a Series on the Three Most Frequently Asked Questions Following the FTC’s Final Noncompete Rule - This is the second installment of our three-part blog series that is intended to respond to employers’ three most...more
Introduction - On April 23, 2024, the Federal Trade Commission (“FTC”) voted to finalize a rule that prohibits employers from enforcing non-compete agreements against workers (“The Rule”)....more
While the Federal Trade Commission's (FTC) April 2024 sweeping rule prohibiting noncompete agreements has been top of mind for many employers, the rule may not be so surprising for businesses using restrictive covenants for...more
On June 13, 2024, an administrative law judge (ALJ) for the National Labor Relations Board (NLRB) ruled that overly broad noncompete and nonsolicitation provisions in an employment agreement violated an employee’s labor...more
Washington state law just changed in a way that might have made your company’s non-solicitation agreements unenforceable and illegal. Recent amendments to the state non-compete statute took effect on June 6 and significantly...more
The FTC's proposed ban on non-compete agreements is still making its way through the legal system, but businesses are already looking for alternatives to protect their interests. Keep in mind that it is not necessarily the...more
When the calendar turns to July 2024, staffing agencies, home health agencies and other service providers operating in Minnesota are going to experience a considerable change in the legal landscape of that state, which could...more
Do you have an employment agreement? Should you have an employment agreement? We are often asked whether founders need written employment agreements with their companies. Every company's culture is different. Often founders...more