News & Analysis as of

Restrictive Covenants Employer Liability Issues Non-Compete Agreements

Hinshaw & Culbertson - Employment Law...

Impact for Employers: The NLRB General Counsel Doubles Down on Restrictive Covenants and Stay-or-Pay Provisions

The General Counsel of the National Labor Relations Board ("NLRB") issued Memorandum GC 25-01 on October 7, 2024, which establishes her intent to "urge the Board not only to find certain non-compete provisions unlawful, but...more

Brooks Pierce

NLRB General Counsel Doubles-Down on Non-Compete Agreement—and Takes Aim at “Stay-or-Pay” Provisions

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On October 7, 2024, the General Counsel for the National Labor Relations Board (“NLRB”) issued a memorandum offering her perspective on damages employers may face when enforcing allegedly unlawful non-compete agreements, and...more

Parker Poe Adams & Bernstein LLP

NLRB Memo Outlines Stricter Enforcement of Noncompetes and 'Stay-or-Pay' Provisions

The National Labor Relations Board (NLRB) General Counsel Jennifer Abruzzo issued a memorandum this week titled "Remedying the Harmful Effects of Non-Compete and 'Stay-or-Pay' Provisions that Violate the National Labor...more

Ballard Spahr LLP

Maryland Employers: Six Must-Know Employment Law Changes

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The Maryland legislature recently passed several laws that affect pay transparency, family and medical leave, the scope of the State’s antidiscrimination laws, workplace safety, and noncompete agreements. As many of these new...more

Epstein Becker & Green

Pennsylvania Plaintiff That Failed in Effort To Block FTC Noncompete Ban Drops Lawsuit

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Last week, employers who use noncompetes got more good news with respect to the Federal Trade Commission’s proposed noncompete ban....more

Steptoe & Johnson PLLC

NLRB: Use of Non-Compete and "Stay-or-Pay" Clauses May Trigger Significant Monetary Consequences for Employers

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On October 7, National Labor Relations Board (NLRB) General Counsel Jennifer A. Abruzzo issued Memorandum GC 25-01, reinforcing and expanding previous positions on how certain restrictive covenants may violate the National...more

Ballard Spahr LLP

ATS Withdraws Challenges to the FTC’s Final Non-Compete Rule After the Eastern District of Pennsylvania Denies its Motion to Stay...

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ATS Tree Services, LLC (“ATS”) has voluntarily dismissed the lawsuit it filed in April 2024 in the U.S. District Court for the Eastern District of Pennsylvania challenging the Federal Trade Commission’s (“FTC”) Non-Compete...more

Kilpatrick

NLRB General Counsel Continues Targeting Non-Competes And Other Standard Employment Fare

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Since being confirmed by the Senate in July 2021, National Labor Relations Board (“NLRB” or “Board”) General Counsel Jennifer Abruzzo has issued 26 memoranda. Many of the GC Memos issued during GC Abruzzo’s tenure present...more

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

Carlton Fields

Court Enjoins FTC Noncompete Ban: Appeal Likely

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A federal judge in Texas has enjoined the Federal Trade Commission’s ban on noncompete agreements, leaving the FTC’s attempt to quash such agreements waiving in the breeze, at least for the time being....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

Spilman Thomas & Battle, PLLC

The FTC’s Rule Banning Noncompete Agreements is Dead. Long Live Noncompete Agreements?

Earlier this year, the Federal Trade Commission (FTC) announced a Final Rule outlawing nearly all noncompete agreements between employers and employees. That Final Rule, however, was overturned at the end of August 2024....more

Morgan Lewis - Tech & Sourcing

Noncompete Clause No Longer Persona Non Grata in Wake of Ryan Ruling

Mere months after the Federal Trade Commission (FTC) approved a final rule banning almost all worker noncompete clauses, the US District Court for the Northern District of Texas granted in Ryan LLC v. Federal Trade Commission...more

Ballard Spahr LLP

Next Steps for Employers After FTC Noncompete Rule Enjoined

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What’s next for employers who want to protect their businesses from competition from departing employees, including the loss of customers, employees, and confidential information? With a federal court injunction against the...more

Epstein Becker & Green

NLRB Opens New Front in Campaign Against Contractual Restrictive Covenants, Now Targeting No-Poach Provisions in a Business’...

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On September 12, 2024, the Regional Director of the National Labor Relations Board’s (“NLRB”) Region 22 in Newark, New Jersey, issued an unfair labor practice complaint against a New Jersey building services company, alleging...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

Troutman Pepper

States' Action Still Viable Despite Ban of FTC Noncompete Rule

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The Northern District of Texas’s nationwide ban on the Federal Trade Commission’s noncompete rule isn’t a complete bar to government enforcement. The rule sought to curb unfair methods of competition and would have voided...more

Franczek P.C.

FTC Ban on Non-Competes Is Blocked — For Now

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Back in April 2024, the Federal Trade Commission (FTC) issued a final rule that would have banned non-compete agreements nationwide as of September 4, 2024. (You can read our alert on the FTC’s final rule here.) However, on...more

MG+M The Law Firm

Defining Limits: FTC Overreach and the Future of Non-Compete Agreements

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In a striking ruling on August 20, 2024, the US District Court for the Northern District of Texas invalidated the Federal Trade Commission’s (FTC) Non-Compete Rule, as set forth in 16 C.F.R. §§ 910.1-6....more

Troutman Pepper

Exploring Employment Law Across Borders: Italy vs. US With White Lotus — Hiring to Firing Podcast

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In this episode of the Hiring to Firing Podcast, hosts Tracey Diamond and Evan Gibbs dive into international waters with Annalisa Reale, a Labor and Employment partner of the Chiomenti Law Firm in Milan, Italy. Inspired by...more

Kilpatrick

Georgia Supreme Court Finds Restrictive Covenants Not Required to Contain Express Geographic Restriction

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In a win for Georgia employers seeking to enforce restrictive covenants, the Supreme Court of Georgia ruled that restrictive covenants are not required to contain an express geographic limitation to be enforceable under the...more

Cozen O'Connor

Employment Law Now VIII-150 - The FTC Noncompete Rule is Dead: What Now?

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In this special 150th podcast episode, Michael Schmidt is joined by his Cozen O'Connor colleagues David Barron and Jim Gale to discuss what is left of the FTC noncompete rule, if anything, and what employers should be doing...more

Kennedys

The FTC’s effort for a non-compete ban has been judicially struck down, however, its fate still hangs in the balance

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The Federal Trade Commission’s (“FTC”) efforts to ban non-compete agreements was significantly curtailed when a federal judge in Texas, on August 20, 2024, issued a nationwide injunction, finding the FTC’s ban on non-compete...more

Fisher Phillips

10 Things Employers Still Need to Consider Even Though the FTC’s Non-Compete Ban is Dead: Your Reminder To-Do List

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You probably know the federal non-compete ban is on ice for now – but that doesn’t mean employers are free to use non-competes indiscriminately. What remains in the wake of the FTC’s ban is a highly complex, constantly...more

Poyner Spruill LLP

FTC’s Non-Compete Ban Is On Hold, For Now

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Earlier this year, we wrote about the Federal Trade Commission (FTC) enacting a final rule to ban most all forms of non-compete agreements between employers and employees in the United States (available here).  The ban was...more

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