News & Analysis as of

No-Poaching Restrictive Covenants Federal Trade Commission (FTC)

Skadden, Arps, Slate, Meagher & Flom LLP

Antitrust Enforcers Are Increasingly Focused on Labor Markets, and Not Just in the Merger Context

Labor markets have been a focus of antitrust regulators at the Department of Justice (DOJ) and Federal Trade Commission (FTC) since the Obama administration. Indications are that enforcers will be even more aggressive across...more

Clark Hill PLC

The Attack on Employment Noncompetes: The Status of Federal Initiatives

Clark Hill PLC on

Historically, enforcement of noncompete agreements has been a subject of state law, not federal law. States have taken many different approaches to the agreements. A few states have enacted laws that ban the enforcement of...more

Latham & Watkins LLP

Restrictive Covenant Crackdown Poses New Challenges for M&A Deal Teams

Latham & Watkins LLP on

Corporates and deal teams should pay careful attention to drafting non-competes and other restrictive arrangements as UK, EU, and US regulators step up enforcement. Regulators on both sides of the Atlantic are placing...more

Benesch

Trade Secrets/Non-Compete Quarterly Update - Q2 2023

Benesch on

Welcome to our Q2 Trade Secret and Restrictive Covenant Update. As you can tell from the update, Q2 was a busy quarter in this space from both a regulatory, legislative, civil litigation and criminal litigation perspective....more

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

Can Non-Compete Agreements Lead to Jail Time?

Can non-compete agreements lead to criminal fines—or even jail time? Yes, they can. That is because violating the Sherman Antitrust Act can result in criminal charges, not just civil liability....more

Littler

Will Europe Follow the Proposed U.S. Ban on Non-competes?

Littler on

The U.S. Federal Trade Commission (FTC) announced on January 5, 2023 a proposed ban on non-competes across the United States. With large global employers considering the implications of the proposed rulemaking, we reached out...more

Manatt, Phelps & Phillips, LLP

[Webinar] How to Navigate the Regulatory Trend to Ban and Criminalize Noncompetes - February 7th, 10:00 am - 11:00 am PT

On the heels of the Federal Trade Commission’s (FTC) January 5, 2023 proposed rule banning noncompetes, Manatt’s antitrust and employment law attorneys will provide a comprehensive overview of the stepped-up efforts to tamp...more

Bradley Arant Boult Cummings LLP

FTC Proposes Rule to Strike Noncompete Agreements Nationwide

On January 5, 2023, the Federal Trade Commission (FTC) announced a proposed new rule that would effectively prohibit employers from requiring employees to agree to noncompete clauses. The public is invited to submit comments...more

Benesch

Trade Secrets/Non-Compete Quarterly Update - Q3 2022

Benesch on

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

Benesch

Trade Secrets/Non-Compete Quarterly Update - Q2 2022

Benesch on

As with the first quarter of 2022, Trade Secret and Restrictive Covenant activity continues to be robust at both the state and federal level. State legislators continue to introduce, analyze and negotiate restrictive covenant...more

BakerHostetler

Decision Benefits Franchise Businesses and Finds Alston Bars Challenge to No-Poach Agreements

BakerHostetler on

In June 2021, the Supreme Court reaffirmed in NCAA v. Alston that antitrust claims under Section 1 of the Sherman Act “presumptively” call for rule-of-reason analysis and that only the rare case merits “quick look” or per se...more

Holland & Knight LLP

Employee Talent Wars Gain Unprecedented Ammunition from Changing Antitrust Landscape

Holland & Knight LLP on

The current labor market is fraught with challenges for employers. In the wake of the COVID-19 market disruptions, the demand for employees, especially for experienced or highly trained employees, far exceeds the supply....more

Benesch

Just like 2021, the DOJ and FTC will remain active in the Restrictive Covenant Space

Benesch on

2021 saw significant activity by both the Department of Justice (“DOJ”) and Federal Trade Commission (“FTC”) in 2021. The DOJ, for example, finally followed through on its 2016 warning/threat to investigate and potentially...more

Troutman Pepper

Ninth Circuit Upholds Unlimited Nonsolicitation Provision

Troutman Pepper on

Over the past five years, the Department of Justice (DOJ) and civil litigants have rigorously challenged the lawfulness of buy-side restraints of trade, including noncompetes, no-poach, and nonsolicitation agreements, under...more

White & Case LLP

Analysis: FTC Encouraged to Ban or Limit Non-Compete Agreements in July 9, 2021 Executive Order; Breaks With Tradition, And...

White & Case LLP on

On Friday, July 9, 2021, President Biden signed Executive Order 14036, Promoting Competition in the American Economy, which includes—among 72 initiatives aimed at enhancing competition in the US—a directive encouraging the...more

Faegre Drinker Biddle & Reath LLP

The Pennsylvania Supreme Court Strikes Down a No-Hire Agreement as an Unreasonable Restraint on Trade

Recently, in Pittsburgh Logistics Systems, Inc. v. Beemac Trucking, LLC, No. 31 WAP 2019, — A.3d –, 2021 WL 1676399 (Apr. 29, 2021), the Pennsylvania Supreme Court found that a no-hire provision that was ancillary to a...more

Constangy, Brooks, Smith & Prophete, LLP

Antitrust In The Labor Market

That which is old is new again. The U.S. Department of Justice and plaintiffs’ lawyers are taking aim at non-solicitation agreements restricting mobility of labor. This isn’t something employers usually think about. ...more

BCLP

COVID-19 UPDATE: U.S. Antitrust Agencies Issue Joint Statement on COVID-19 and Competition in U.S. Labor Markets

BCLP on

In a warning to businesses, the Antitrust Division of the U.S. Department of Justice (“DOJ”) and Federal Trade Commission (“FTC,” collectively the “Agencies”) issued a joint statement announcing their continuing vigilance...more

Seyfarth Shaw LLP

State Attorneys General Urge FTC to Consider Labor Issues in Antitrust Enforcement

Seyfarth Shaw LLP on

A group of 18 state attorneys general (the “AGs”) recently filed comments with the Federal Trade Commission (“FTC”) in advance of a series of hearings centered on changes to antitrust and consumer protection enforcement in...more

McDermott Will & Emery

Aerospace & Defense Series: Antitrust Risks for Aerospace and Defense Contractors in Employment Practices

McDermott Will & Emery on

As highlighted in a recent lawsuit, aerospace and defense contractors can face various antitrust risks when using certain tactics to prevent other companies from hiring their employees. See Hunter v. Booz Allen Hamilton...more

Shumaker, Loop & Kendrick, LLP

Employee ‘No Poaching’ Agreements Meet the Antitrust Laws: Protection of Employees in the New Economy

For centuries employers have maintained a strong interest in trying to protect their most valuable asset, their key employees, from solicitation by and loss to other employers, especially competitors. As a result, “no...more

Franczek P.C.

DOJ, FTC Announce Plans to Criminally Prosecute Employers That Enter into Wage-Fixing or No-Poaching Agreements

Franczek P.C. on

In the fiercely competitive market for talent, human resources personnel and recruiters inevitably feel the competing pressures of offering compensation packages that are attractive to potential employees and keeping costs...more

Troutman Pepper

Antitrust Division Threatens Criminal Prosecution for Employment Practices: Antitrust Agencies Issue Joint Guidance on Employment...

Troutman Pepper on

Even in the absence of an agreement to fix compensation, simply exchanging competitively sensitive information could serve as evidence of an implicit illegal agreement. On October 20, the Department of Justice (DOJ) and...more

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