News & Analysis as of September 18, 2024

Restrictive Covenants

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Non-Compete Agreements are contracts, typically formed in employment or business purchase contexts, where one party agrees to refrain from engaging in a particular line of work or pursuing business within a certain industry or locale. The purpose of these agreements is to protect employers or business purchasers from competition stemming from former employees or former owners of a business. less -

To Non-Compete Agreement or to Not? That is the Question

Haynsworth Sinkler Boyd, P.A. on 8/15/2024

The Federal Trade Commission's Non-Compete Clause Rule proposed in January 2023 that we have previously written about becomes effective September 4, 2024, and invalidates most noncompetition agreements on or after the Rule's...more

FAQs About the FTC’s Broad New Ban on Noncompetes

Skadden, Arps, Slate, Meagher & Flom LLP on 6/27/2024

When the Federal Trade Commission (FTC) issued its long-awaited final rule banning virtually all noncompete clauses between workers and employers, it also published 500-plus pages of commentary....more

FTC Final Rule Banning Most Worker Noncompete Agreements

Allen Matkins on 5/6/2024

The Federal Trade Commission (FTC) on April 23, 2024 issued its long-anticipated final rule generally banning noncompete agreements for workers (including employees and independent contractors) nationwide. What should...more

Potential Exceptions Under FTC’s Non-Compete Ban

Morrison & Foerster LLP on 5/2/2024

On April 24, 2024, the U.S. Federal Trade Commission (FTC) promulgated its final rule prohibiting non-competes for most workers in the United States (the “Final Rule”). The Final Rule raises several issues, including...more

The Coming Rule & Battle over Non-Compete Agreements

Houston Harbaugh, P.C. on 5/2/2024

The battle over non-compete agreements is gearing up. The Federal Trade Commission voted last week to adopt a Final Rule, as promised back in January 2023, that largely bans non-competes. Lawsuits are being filed to block it....more

Looking for Certainty: Protection From Competition Following the FTC’s Rule Banning Non-Compete Clauses

Balch & Bingham LLP on 4/26/2024

On Tuesday, April 23, 2024, the Federal Trade Commission (“FTC”) approved a final Non-Compete Clause Rule (“Rule”) banning as unfair competition all non-compete provisions entered with workers on or after the effective date...more

FTC Issues New Rule to Abolish Non-Compete Agreements

Rivkin Radler LLP on 4/25/2024

On Tuesday, April 23, 2024, the Federal Trade Commission (FTC), issued a final rule designed to promote competition and new business formation that, when effective, will impose a nationwide ban on non-compete agreements...more

FTC Votes to Issue Final Rule Banning Most Non-Compete Agreements Nationwide

Husch Blackwell LLP on 4/25/2024

On April 23, 2024, the Federal Trade Commission (FTC) voted 3-2 to issue a final rule that would ban virtually all non-compete agreements for nearly all workers of for-profit employers. Commissioners Melissa Holyoak and...more

The Eleventh Circuit Addresses Georgia Noncompete Statute in "Sale of Business" Context

FordHarrison on 12/7/2023

Prior to the enactment of the Georgia Restrictive Covenant Act (“RCA”), Georgia courts interpreted noncompete provisions entered into in the context of selling a business differently than they did between employers and...more

Recent Non-Compete Trends: Courts Continue To Enforce Non-Competes While Politicians Seek To Narrow Them

MoFo Employment Law Commentary (ELC) on 4/6/2023

The FTC’s Notice of Proposed Rulemaking of its Non-Compete Clause Rule, which would ban non-competes altogether if promulgated, opened 2023 with a bang. Whether it goes into effect, in what form, and whether the Rule will...more

Trio of Delaware Cases Signal Stricter Review of Sale-of-Business Non-Competes

Morrison & Foerster LLP on 4/3/2023

On March 16, 2023, the Delaware Chancery Court in Intertek Testing Services NA, Inc. v. Eastman found a sale-of-business non-compete was overbroad, given its worldwide geographic scope, and refused to modify it to make it...more

Key Considerations in the Purchase / Sale of a Partnership Interest

Payne & Fears on 3/24/2023

Payne & Fears’ Business Litigation Group helps businesses and their owners with wide-ranging disputes. In our practice, we’ve noticed that in disputes among business partners there are common issues that often surface. ...more

Missed Assignments: The Importance of Assignability Clauses in Restrictive Covenant Agreements

Sheppard Mullin Richter & Hampton LLP on 2/22/2023

Imagine paying millions to acquire a company only to later discover the restrictive covenants in the employment agreements of high-level executives were unenforceable. That’s precisely what happened in Intertek Asset...more

Don’t Forget Taxes When Negotiating Non-Competes

Steptoe & Johnson PLLC on 1/27/2023

Exception to FTC Proposal Although the Federal Trade Commission (FTC) has proposed a ban on non-compete agreements, the proposal contains an exception in certain business acquisitions where the seller enters into a...more

Federal Trade Commission Proposes Rule to Ban Non-Compete Clauses

Davies Ward Phillips & Vineberg LLP on 1/20/2023

The United States Federal Trade Commission (FTC) recently issued a proposed rule that, if adopted, would broadly prohibit employers from entering into post-employment non-compete agreements with workers, and would also...more

FTC Proposed Ban on Non-Competes Includes M&A Exception Comparable to California Law

Paul Hastings LLP on 1/19/2023

On January 5, 2023, the Federal Trade Commission (“FTC”) announced a proposed regulation (the “Proposed Rule”) that would ban non-compete agreements imposed against workers by employers. The Proposed Rule includes a narrow...more

Restrictive Covenants in Connection With a Sale of a Business Cannot be Overbroad

Lowenstein Sandler LLP on 11/4/2022

Business owners and transaction lawyers who view non-compete agreements as standard in connection with the sale of a business should be careful not to overreach in imposing restrictive covenants on sellers in purchase...more

Dire Straits? The FTC’s Expanding Non-Compete Enforcement Seeks to Narrow Sale-of-Business Agreements

Kelley Drye & Warren LLP on 9/12/2022

Back in July 2021, President Biden signed Executive Order 14036 directing the Federal Trade Commission (“FTC”) to “address agreements that may unduly limit workers’ ability to change jobs.” As a result, gallons of ink were...more

Part 24 of “The Restricting Covenant” Series: Choice of Law and Covenants Not to Compete

Faegre Drinker Biddle & Reath LLP on 9/18/2019

There are many notable east coast-west coast rivalries. In sports (Celtics versus Lakers basketball), in leisure (Atlantic versus Pacific beaches), or in food (Shake Shack versus In-N-Out Burger), to name a few. With respect...more

Non-Compete News: – Georgia Court Interprets Non-Compete Statute's "Sale-of-a-Business" Provision

FordHarrison on 9/4/2019

Georgia’s Restrictive Covenants Act (O.C.G.A. § 13-8-50 et seq.) (“RCA”) governs Georgia non-compete agreements entered into after May 2011. Very few courts have interpreted the RCA since its inception. In Bearoff v. Craton,...more

SC body bag noncompete case exhumed, revisited

Burr & Forman on 10/23/2018

Two years ago, we wrote about a noncompete decision in which a special referee found a business seller had breached a sales agreement by violating both a noncompete covenant and an exclusive sales provision contained in the...more

Non-Competes in the Employment Context Revisited

Burr & Forman on 9/17/2018

In 2016 we wrote about a non-compete decision where special referee found that a seller of a business had breached a sales agreement by violating both a non-compete covenant and an exclusive sales provision contained in the...more

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Non-Compete Agreements › Selling a Business › Restrictive Covenants

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