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On April 23, 2024, the Federal Trade Commission (FTC) issued its final rule banning non-compete provisions nationwide (the Rule). While the FTC contends that non-competes keep wages low, suppress new ideas and stifle the...more
Washington state businesses that have noncompetition agreements with employees or independent contractors will be subject to new requirements under the latest amendment to the state’s noncompetition law beginning June 6,...more
On April 23, the Federal Trade Commission voted 3-2 to adopt a final rule banning noncompete agreements. The FTC defines a "non-compete clause" broadly as a term or condition of employment that prohibits a worker from, or...more
There is a nationwide trend to restrict the use of employee non-compete agreements, and employers should remain informed of the changes because the stakes are high. The consequences of noncompliance can include civil as well...more
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
Companies utilizing noncompete agreements in the U.S. in the employment context should reevaluate their practices in light of recent changes to law and a rapidly changing legal landscape that is growing increasingly hostile...more
As momentum for regulation of non-competes grows at the federal level, states continue to pass restrictive non-compete legislation on their own. As previously reported, on January 5, 2023 the Federal Trade Commission...more
Coming on the heels of the Federal Trade Commission’s proposed rule banning employee non-competes and one week before the National Labor Relations Board’s General Counsel published a memo taking the position that...more
On June 20, 2023, the New York State Assembly passed A1278B, which amends the state’s labor law to prohibit non-compete agreements (the “Bill”). The Assembly’s passage of the Bill, which comes on the heels of the New York...more
On May 24, 2023, Governor Walz signed off on Minnesota legislation prohibiting employers from entering into non-compete agreements with employees or independent contractors. How will this new law affect your business? What...more
Venture capitalists refer to “secret sauce” as the differentiator that gives one startup the edge over competitors. The secret sauce, properly protected, is a trade secret. However, employee turnover can threaten the secret...more
It’s hard to keep up with all the recent changes to labor and employment law. While the law always seems to evolve at a rapid pace, there have been an unprecedented number of changes for the past few years — and this past...more
Compared to Q1 and Q2 of 2022, Q3 was relatively slow with respect to trade secret legislation and significant restrictive covenant awards and/or case law. Still, and as described below, two new statutes require a company’s...more
2021 was an active year for trade secret and restrictive covenant law. 28 states introduced a total of 68 restrictive covenant bills, the United States Senate re-examined two prior restrictive covenant bills, and President...more
Continuing our annual tradition, we have compiled our top developments and headlines for 2019 & 2020 in trade secret, non-compete, and computer fraud law. Here’s what you need to know to keep abreast of the ever-changing law...more
States across the country continue to enact legislation limiting the use of non-compete agreements. The most notable trend is the applicability (or, rather, non-applicability) of non-competition agreements to low-wage...more