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The New FTC Rule Explained: Will Your Non-Compete Be Enforceable?
The FTC Issued a New Rule to Ban All New Noncompete Agreements
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
This week, we’re examining the repercussions for employers of a recent court decision that set aside the Federal Trade Commission’s (FTC’s) nationwide non-compete ban: On August 20, 2024, the U.S. District Court for the...more
On August 20, 2024, the Northern District of Texas in the case of Ryan, LLC v. Federal Trade Commission granted summary judgment to the Plaintiff Ryan, LLC, enjoining the FTC from implementing its rule banning non-compete...more
Employers concerned about the enforceability of restrictive covenants can breathe a little easier for now. A Texas federal court has blocked the Federal Trade Commission’s (“FTC’s”) final rule banning non-compete agreements...more
On Tuesday, August 20, a federal judge in Texas shot down the Federal Trade Commission’s rule banning noncompete agreements (“the Rule”) that was set to take effect September 4. This means that the FTC cannot enforce the...more
Even though the FTC’s impending rule that will ban most non-competition agreements specifically carves out claims for violations that accrue before the rule goes into effect – an exception that many federal courts have...more
The ongoing battle between DraftKings Inc. and its former executive, Michael Hermalyn, remains contentious, with the District of Massachusetts’ decision to enforce Hermalyn’s non-compete now appealed and argued to the First...more
As discussed in our prior alert concerning the FTC final rule banning non-competes, litigation has threatened the final rule’s enforcement and implementation....more
On April 23, 2024, the Federal Trade Commission (“FTC”) issued a rule banning virtually all employment noncompete agreements in the United States. At least two federal lawsuits are seeking to stay the rule’s current...more
On May 31, 2024, the Governor of Colorado signed House Bill 24-1324, titled “Attorney General Restrictive Employment Agreements,” putting into place a law to toughen protections for employees who are subject to abusive...more
Employers likely have lots of questions as you try to understand the FTC’s new non-compete ban. After all, non-competes have become a tool for businesses of all types and sizes, and if the rule survives legal challenges, it...more
In the article below we informed you that the Federal Trade Commission (“FTC”) approved and issued a final rule effectively banning non-compete agreements nationwide (“Final Rule”). At the time, all we knew about the...more
On April 23, 2024, the Federal Trade Commission (FTC) voted in a 3 to 2 decision along party lines to adopt its Final Non-Compete Clause Rule (“Noncompete Rule”) banning post-employment non-compete clauses between employers...more
The wait is over, but the fight is just beginning. Will U.S. employers need to break up with non-compete agreements forever? The Federal Trade Commission (FTC) voted “yes” earlier this week in pushing through a Final Rule...more
The FTC announced yesterday that it will be hosting a special virtual open meeting on April 23, 2024, at 2:00 p.m. Eastern to discuss its proposed final rule regarding non-competes....more
A recent Sixth Circuit decision upholding an employer’s non-compete agreement with a former employee highlights the need for legal counsel to craft preliminary injunction language in such matters which reflects the unique...more
While employers were busy figuring out how to comply with the patchwork of laws stemming from the ongoing pandemic, the state of Illinois passed a number of new and amended laws impacting Illinois workplaces. As the year...more
President Biden’s Executive Order on Promoting Competition in the American Economy includes a directive to the Federal Trade Commission (FTC) to “curtail the unfair use of non-compete clauses and other clauses or agreements...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
As with most things in life, you should hope for the best, but plan for the worst in the event that a valued employee leaves to join a competitor. This post contains some helpful tips to keep in mind following such a move by...more
On February 21, 2019, the New Hampshire Senate, in a bipartisan voice vote and without debate, passed Senate Bill 197, which would prohibit employers from requiring low-wage workers to enter into non-compete agreements, and...more
In the four months since the Massachusetts Noncompetition Agreement Act became effective, employers have learned the hard way that implementing the new rules is a lot harder than it seems....more
Last week, the Office of the New York Attorney General (NYAG’s Office) reached a settlement with WeWork, a New York City-based company that provides shared “co-work” spaces nationwide and internationally – and, notably, is...more
Q: My company is headquartered in Massachusetts. Does the new Massachusetts law on non-competes change how I structure non-compete agreements with employees? ...more
The Massachusetts General Court has passed legislation that, if signed by the governor, will comprehensively reform the law governing employee noncompetition agreements and trade-secret misappropriation. If enacted, these...more