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Former Employee Employment Contract Employer Liability Issues

Mayer Brown

Germany: Restrictive Covenants

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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

Mayer Brown

China: Restrictive Covenants

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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

Ogletree, Deakins, Nash, Smoak & Stewart,...

FTC’s Ban on Non-Compete Agreements: Definitions, Prohibitions, Requirements, and Employer Considerations

On May 7, 2024, the Federal Trade Commission (FTC) published a final rule that effectively bans all non-compete agreements between employers and “workers” as “unfair method[s] of competition” and requires employers to refrain...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

Fenwick & West LLP

FTC Bans Employment Noncompetes

Fenwick & West LLP on

On April 23, 2024, the Federal Trade Commission (FTC) voted 3-2 to adopt a final rule broadly banning post-employment noncompete agreements. This federal ban prohibits for-profit employers from entering into noncompete...more

DRI

Non-Compete Clauses and Professional Liability

DRI on

Non-compete provisions have long been viewed by employers as reasonable and appropriate velvet handcuffs on departing employees and as an unfair burden on competition by the departing employees. The purpose of non-compete...more

Baker Donelson

The End of Non-Competition Agreements? Not so Fast!

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The Federal Trade Commission (FTC) issued a final rule in a partisan 3-2 vote on April 23, 2024 prohibiting employers from binding most American workers to post-employment non-competition agreements (the "Final Rule")....more

Benesch

Don’t Forget Your Employees on Valentine’s Day (No, Really): California’s Notification Deadline for All Employees with...

Benesch on

As previously highlighted by Benesch, California strengthened its long-standing prohibition on non-competition agreements on January 1, 2024. In addition, and also as previously highlighted by Benesch, one of these...more

Seyfarth Shaw LLP

California’s New Love Law: Seyfarth’s Valentine’s Day Legal Update on Non-Competes and Compliance Messages

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Love is in the air. With Valentine’s Day just around the corner, we’re writing to share some heartfelt news about a recent change in California law that might just make your heart skip a beat....more

Quarles & Brady LLP

Employers Have New Obligations Under Statute Regulating Noncompete Agreements

Quarles & Brady LLP on

As discussed in a prior alert, newly-enacted California laws governing noncompete agreements require employer action by February 14, 2024. This alert explains the purpose of the new laws, what the notification requirement...more

Littler

Dutch Employer Paid Dearly for an Offer to Buy Out a Non-Compete Clause

Littler on

In a recent matter before the Arnhem-Leeuwarden Appellate Court, an employer in the Netherlands attempted to hold a former employee to his non-compete clause. After the employee had terminated his employment contract, the...more

Burns & Levinson LLP

Employers Must Give Notice to Current and Certain Former California Employees of Void Noncompete by February 14, 2024, or Risk...

Burns & Levinson LLP on

Many companies have ceased using noncompete clauses for employees working in California. At best the clauses have become unenforceable, at worst, a liability for the company....more

Seyfarth Shaw LLP

Golden State Crackdown on Non-Competes: California Enacts Second Non-Compete Law To Curtail Use of Non-Competes With Employees

Seyfarth Shaw LLP on

California has done it again! We reported last month concerning California’s new non-compete law that furthers the state’s protections for employee mobility and seeks to void out of state employee non-compete agreements....more

Troutman Pepper

Seventh Circuit Revives McDonald's Employee No-Poach Litigation

Troutman Pepper on

In June of 2022, McDonald’s obtained a judgment on the pleadings, ending antitrust litigation challenging the legality of the no-hire restraints it previously included in its franchise agreements. More than a year later, the...more

Seyfarth Shaw LLP

New California Non-Compete Law Furthers the State’s Employee Mobility Protections and Seeks to Void Out of State Employee...

Seyfarth Shaw LLP on

On September 1, 2023, California Governor Gavin Newsom signed legislation that furthers the state’s protections for employee mobility and seeks to void out of state employee non-compete agreements. Specifically, the new law...more

Husch Blackwell LLP

California Further Restricts the Use of Non-Competes

Husch Blackwell LLP on

Effective January 1, 2024, California will further restrict the use of post-employment covenants not to compete (non-competes) by authorizing lawsuits against employers who include or seek to enforce void non-compete...more

CDF Labor Law LLP

New Golden State Law To Create Gold Rush Litigation Testing Non-Compete Agreements

CDF Labor Law LLP on

For over two decades, California law concluded non-compete agreements are not enforceable in the context of employment, Edwards v. Anderson, 44 Cal.4th 937 (2008) and even created a public policy claim against employers...more

Littler

California Reaches Across State Lines to Invalidate Employee Non-Compete Agreements

Littler on

We are in the final stretch of the California legislature’s first year of a two-year session. One bill that sped through the legislative process—without any registered opposition—is Senate Bill 699, which extends the state’s...more

CDF Labor Law LLP

California Assists New York Employees in No-Poach Case

CDF Labor Law LLP on

A private class-action complaint claimed that the department store, Saks, and several luxury brands (including Louis Vuitton, Loro Piana, Prada, Brunello and Fendi) violated Federal Antitrust laws when they agreed that each...more

Allen Matkins

Pre-Merger Non-Solicitation Ban Yields No Antitrust Claim

Allen Matkins on

It is rare that for an employer to instruct its employees not to try to lure aware a competitor's customers.  It is rarer still when an employer fires an employee for doing so.  These may be rare events, but apparently (or at...more

Pullman & Comley - Connecticut Health Law

Connecticut’s Physician Non-Compete Law Now Revised to Include New Restrictions and Extended to Cover APRNs and PAs

Since July 1, 2016, Connecticut has had a law (CGS §20-14p) which, among other things, places a one year and 15 mile restriction on all physician non-compete agreements. Effective July 1, 2023, the law has been revised...more

Poyner Spruill LLP

Another Reason to Revisit Non-Competes: New Risk of NLRA Charges

Poyner Spruill LLP on

Following the recent declaration that certain confidentiality and non-disparagement clauses in severance agreements are unlawful, the National Labor Relations Board (NLRB) General Counsel released a memo on May 30, 2023 (GC...more

Epstein Becker & Green

Ohio Appellate Court Holds Logistics Company was Improperly Limited to Half a Remedy, Reviving Noncompete Suit Against a Former...

Epstein Becker & Green on

The day after obtaining federal brokerage authority for the logistics company he formed a month earlier, Christopher Johnson, a North Carolina resident, resigned from his employment with Cincinnati-based Total Quality...more

Littler

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

Littler on

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

Shumaker, Loop & Kendrick, LLP

Client Alert: Your Non-Compete Might Not Be Enforceable For Much Longer

Whether you are an employer attempting to maintain and enforce non-compete provisions in contracts with your employees, or an employee trying to navigate career developments despite being subject to such a provision, you need...more

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