News & Analysis as of

Preliminary Injunctions Restrictive Covenants Employer Liability Issues

Seyfarth Shaw LLP

Pennsylvania Plaintiff Drops Challenge to FTC Non-Compete Rule

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On October 4, 2024, Plaintiff ATS Tree Services, LLC (“ATS”) voluntarily dismissed its claims against the FTC challenging the agency’s Non-Compete Rule. See ATS Tree Services, LLC v. Fed. Trade Comm’n, et al., No....more

Seyfarth Shaw LLP

Noncompete Agreements – Employer Options and Strategies to Reduce Risks

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Seyfarth Synopsis: The federal district court for the Northern District of Texas has issued an order in the Ryan case staying the effective date on a nationwide basis the Federal Trade Commission (FTC) Rules banning...more

Seyfarth Shaw LLP

The Saga’s Not Over – FTC Appeals Florida Court’s Stay of Non-Compete Rule

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Just over a month ago, employers throughout the United States breathed a sigh of relief after Judge Ada Brown in the Northern District of Texas issued a summary judgment ruling in the Ryan v. FTC litigation setting aside the...more

Quarles & Brady LLP

Texas Federal Judge Strikes Down FTC Non-Compete Ban

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Judge Ada Brown of the U.S. District Court for the Northern District of Texas on Tuesday struck down the Federal Trade Commission’s (FTC) pending ban on non-compete covenants, concluding that the issuance of the FTC’s Rule...more

Ballard Spahr LLP

Texas Federal Judge Strikes Down FTC Non-Compete Ban

Ballard Spahr LLP on

On August 20, 2024, Judge Ada Brown of the U.S. District Court for the Northern District of Texas vacated the Federal Trade Commission’s (FTC) final Rule that the FTC enacted to ban non-compete agreements. Judge Brown held...more

Troutman Pepper

Texas Court Issues National Injunction Barring Enforcement of the FTC’s Noncompete Ban

Troutman Pepper on

In a complete victory for plaintiffs, a Texas court permanently enjoined the Federal Trade Commission’s (FTC) rule banning nearly all employee noncompetes. In the absence of the court’s decision, the rule had been scheduled...more

Troutman Pepper

Pennsylvania Court Denies Injunction Against FTC’s Noncompete Ban

Troutman Pepper on

In direct conflict with a recent Texas court ruling, on July 23, an Eastern District of Pennsylvania court denied ATS Tree Services’ motion for a preliminary injunction to stay the effective date of the Federal Trade...more

Ballard Spahr LLP

Texas District Court Preliminarily Enjoins FTC’s Non-Compete Ban for Named Plaintiffs

Ballard Spahr LLP on

As we previously reported, here, the Federal Trade Commission (FTC) issued a Final Rule on April 23, 2024 that would prevent most employers from enforcing non-compete agreements against workers, effective September 4, 2024...more

Smith Anderson

The Future of the FTC’s Non-Compete Ban Remains Uncertain - Consider Making Initial Preparations for Compliance

Smith Anderson on

As we explained in a previous client alert, the Federal Trade Commission ("FTC") has published a proposed final rule that would ban nearly all worker non-competes. The rule was published on May 7, 2024, and will go into...more

Bricker Graydon LLP

Non-Competes Banned? Not in the Heart of Texas!

Bricker Graydon LLP on

Almost immediately after the Federal Trade Commission (FTC) issued its rule essentially banning non-compete agreements nationwide for all workers, the lawsuits started flying. One of the first cases filed was by Ryan, LLC...more

ArentFox Schiff

US District Court Enjoins Federal Trade Commission’s Noncompete Rule For The Named Plaintiffs

ArentFox Schiff on

On July 3, the US District Court for the Northern District of Texas issued a decision and order enjoining the Federal Trade Commission (FTC) from enforcing its final rule banning most noncompete agreements....more

Sullivan & Worcester

Federal Court Blocks the FTC’s Non-Compete Ban, but Only for Named Plaintiffs

Sullivan & Worcester on

In a decision that prolongs national uncertainty about the Federal Trade Commission’s non-compete ban, a federal court in Texas has entered a preliminary injunction postponing the effective date of the ban and barring the FTC...more

CDF Labor Law LLP

First Test of FTC’s Non-Compete Ban Will Be Without Oral Argument

CDF Labor Law LLP on

The Federal Trade Commission promulgated regulations that stand to ban non-compete agreements in employment relationships nationwide. These regulations are scheduled to become effective on September 4, 2024....more

Faegre Drinker Biddle & Reath LLP

Part 27 of the “The Restricting Covenant Series”: Disgorgement

Most of the action in restrictive covenant cases occurs in the beginning of the litigation at the temporary or preliminary injunction stage when a company seeks to stop someone from doing something immediately. However,...more

Parker Poe Adams & Bernstein LLP

North Carolina Courts Defeat Another ‘Overbroad' Noncompete

In recent years, North Carolina courts have become increasingly resistant to enforcing noncompetition and non-solicitation restrictions they view as insufficiently narrowed to the specific competitive threat presented by the...more

Jackson Lewis P.C.

Non-Compete Covenants Must Be Reasonable For Preliminary Injunction, Nevada Supreme Court Affirms

Jackson Lewis P.C. on

A non-compete agreement in Nevada “must be limited to the geographical areas in which an employer has particular business interests,” the Nevada Supreme Court has affirmed. Shores v. Global Experience Specialists, Inc., 134...more

Orrick - Trade Secrets Group

Court Order to U-Haul: Haul Your Non-Compete Clauses Out of California

A California appellate court recently upheld a permanent injunction in Robinson v. U-Haul Company of California barring U-Haul from enforcing its non-compete covenants in California. U-Haul also was required to pay over...more

Burr & Forman

Obtaining Enforceable Non-Compete Agreements: Timing And Geography Matter

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Last month, a federal judge in Mobile, Alabama denied an employer’s request for a preliminary injunction seeking to stop that employer’s former employee from working for an alleged competitor. See Dawson v. Ameritox, Ltd.,...more

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