By now, we all know that the FTC proposed a rule that will ban nearly every noncompete agreement and that a number of companies have filed legal challenges to it. This week, a federal judge in Pennsylvania weighed in, denying a request to enjoin the rule. This essentially causes a split among two federal
On Wednesday, July 3, a Texas federal court enjoined the Federal Trade Commission’s (FTC) rule banning most noncompetes (the Noncompete Rule) and has stayed the implementation of the Noncompete Rule, but only as to the plaintiffs involved in that case.
The ruling is “preliminary,” with a subsequent ruling planned on the ultimate merits of the
On April 23, 2024, the Federal Trade Commission issued a broad Final Rule that effectively bans noncompete clauses nationwide. The FTC states that noncompete clauses are an unfair method of competition and violate Section 5 of the Federal Trade Commission Act. This ban does not cover such clauses already in place for senior executives that earn more
The National Labor Relations Board in 2023 has continued on its pro-union path in all areas of traditional labor law. Many of the NLRB’s actions are the result of the ongoing advice memos which are being issued by General Counsel Jennifer Abruzzo. We previously have blogged about some of the advice memo topics, such as
If you use non-competes, make sure you complete all the steps to make them enforceable. It may be your practice to ask the employee to sign it and then not sign it yourself. While we seldom see challenges to this practice, the Alabama Supreme Court recently took an unusually close look at this issue, clarifying
Can you still have noncompete agreements with your employees? There has been a lot of buzz about this issue, and this week the general counsel of the National Labor Relations Board joined the conversation with a memorandum, GC 23-08, opining that noncompete and nonsolicitation agreements violate the National Labor Relations Act. This continues a
Employment attorneys and employers are well aware that noncompete and nonsolicitation agreements have been under continued scrutiny by states across the country. While the laws vary from state to state, generally, restrictive covenant agreements have become more difficult for employers to enforce when an employee violates their agreements and “thumbs their nose” at threatened enforcement.
President Biden issued a new lengthy executive order (EO) on July 9, 2021, aimed at promoting competition in the United States. While that sounds great, everyone needs to keep in mind that this new EO also is aimed at noncompete agreements used by many employers across the country. Specifically, Section 5(g) of the EO encourages
Do you typically include a “no rehire” clause in your settlements with soon to be former employees? How about agreements with other companies that you will not “poach” each other’s employees? If your answer to either of those questions is yes, you should keep an eye on some New York legislation that could impact those
Can relationships with referral sources give rise to a legitimate business interest sufficient to enforce a non-compete? The answer is yes, at least in Florida.
A Little Helpful Background
Generally speaking, non-compete agreements (that prevent a former employee from working for your competitor) are not enforceable unless they protect an employer’s “legitimate business interest.” Non-competes