In 2024, Seyfarth’s Trade Secrets, Computer Fraud & Non-Compete practice group presented a series of dynamic and insightful CLE webinars, addressing pivotal challenges confronting businesses head-on. ...more
1/3/2025
/ Competition ,
Confidential Information ,
Contract Terms ,
Employee Mobility ,
Employer Liability Issues ,
Employment Contract ,
Federal Trade Commission (FTC) ,
Intellectual Property Protection ,
Non-Compete Agreements ,
Restrictive Covenants ,
Trade Secrets
On December 4, 2024, the Federal Trade Commission (“FTC”) ordered building services contractor Guardian Industries, Inc. (“Guardian”) to cease enforcement of no-hire provisions it included in customer service agreements with...more
As we previously reported, the Federal Trade Commission (“FTC”) announced that it is amending and reorganizing the document requirements for pre-merger notifications under the Hart Scott Rodino Act (“HSR Act”), 15 U.S.C. 18a,...more
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
9/25/2024
/ Administrative Procedure Act ,
Appeals ,
Arbitrary and Capricious ,
Confidential Information ,
Employees ,
Employer Liability Issues ,
Employment Contract ,
Federal Trade Commission (FTC) ,
Final Rules ,
Hiring & Firing ,
Intellectual Property Protection ,
Motion To Stay ,
Non-Compete Agreements ,
Preliminary Injunctions ,
Restrictive Covenants ,
Summary Judgment
Once again surprising the country by acting ten days before her own self-appointed deadline, a federal judge in the United States District Court for the Northern District of Texas issued a ruling on August 20 in the Ryan v....more
8/21/2024
/ Arbitrary and Capricious ,
Competition ,
Employer Liability Issues ,
Employment Contract ,
Federal Trade Commission (FTC) ,
Final Rules ,
FTC Act ,
Hiring & Firing ,
Intellectual Property Protection ,
Non-Compete Agreements ,
Regulatory Authority ,
Restrictive Covenants ,
Unfair Competition
This just in: Judge Ada Brown ruled yesterday on the parties’ dueling summary judgment motions – 10 days before her self-imposed deadline to do so – in Ryan LLC v. FTC. Judge Brown granted the plaintiffs’ motion for summary...more
8/21/2024
/ Arbitrary and Capricious ,
Employees ,
Employer Liability Issues ,
Employment Contract ,
Employment Litigation ,
Federal Trade Commission (FTC) ,
Final Rules ,
Hiring & Firing ,
Non-Compete Agreements ,
Regulatory Authority ,
Restrictive Covenants
Wednesday, a third court weighed in on the FTC’s proposed ban on non-competes, set to go into effect on September 4, 2024. Judge Corrigan of the United States District Court for the Middle District of Florida granted the...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
8/13/2024
/ Choice-of-Law ,
Confidential Information ,
DraftKings ,
Employment Contract ,
Hiring & Firing ,
Labor Code ,
Misappropriation ,
Non-Compete Agreements ,
Online Gaming ,
Popular ,
Restrictive Covenants ,
State Labor Laws
In a rapid-fire response, the Ryan Court in the Northern District of Texas this morning denied Plaintiff and Plaintiff-Intervenors’ Expedited Motion for Limited Reconsideration of the Scope of Preliminary Relief, and...more
Having achieved a milestone in obtaining a limited preliminary injunction halting the application of the FTC ban on non-competes effective September 4, 2024 as to the named plaintiffs and plaintiff-intervenors in its Texas...more
On April 23, 2024, the FTC announced its Final Non-Compete Clause Rule (“Final Rule”), which bans post-employment non-compete clauses between employers and their workers. The Final Rule becomes effective 120 days after being...more
6/12/2024
/ Chevron Deference ,
Constitutional Challenges ,
Employees ,
Employer Liability Issues ,
Employment Contract ,
Federal Trade Commission (FTC) ,
Final Rules ,
FTC Act ,
Non-Compete Agreements ,
Popular ,
Proposed Rules ,
Restrictive Covenants ,
Section 5 ,
Unfair Competition
On April 23, 2024, the FTC announced its Final Non-Compete Clause Rule (“Final Rule”), which bans post-employment non-compete clauses between employers and their workers. The Final Rule becomes effective 120 days after being...more
4/25/2024
/ Competition ,
Confidential Information ,
Contract Terms ,
Employer Liability Issues ,
Employment Contract ,
Federal Labor Laws ,
Federal Trade Commission (FTC) ,
Final Rules ,
FTC Act ,
Hiring & Firing ,
Intellectual Property Protection ,
Labor Reform ,
Non-Compete Agreements ,
Restrictive Covenants
It should come as no surprise to readers of our blog that restrictive covenants are facing significant headwinds. The last decade or so has seen significant limitations on such agreements—mainly non-competes, but also other...more
In 2023, Seyfarth’s Trade Secrets, Computer Fraud & Non-Compete practice group presented a series of dynamic and insightful CLE webinars, addressing pivotal challenges confronting businesses head-on. The breadth of our...more
The FTC is not alone in taking aim at non-competes. Yesterday, the NLRB’s General Counsel Jennifer Abruzzo issued a memo to all regional directors, officers-in-charge, and resident officers at the NLRB stating that...more
For those interested in commenting on the FTC’s proposed rule banning nearly all non-competes, today, April 19, is your deadline to do so!...more
The FTC announced yesterday that it was extending the deadline to submit public comments on its proposed rule banning employment non-competes. ...more
Earlier today, the Federal Trade Commission (“FTC”) published a proposed rule which would ban all non-compete agreements between employers and “workers” (broadly defined to include employees, independent contractors, interns,...more
The District of Massachusetts recently held that garden leave payments, whereby a former employee subject to a restrictive covenant is paid by the former employer for the duration of the restrictive period, do not constitute...more
Many restrictive covenant agreements rely on various abbreviations to streamline the contractual language, including most notably the use of “Company” as a stand-in for the employer’s name. Additionally, these agreements...more
A Superior Court in Massachusetts has allowed an aesthetician’s lawsuit to proceed against her former employer after it sought to enforce her allegedly void restrictive covenant....more
Recently, we wrote about New Hampshire’s attempts to piggyback on Massachusetts’ material change doctrine. In this post, we’re taking a look at Connecticut’s latest legislative effort to limit non-competes—House Bill 5249....more
Nowadays, it seems like non-compete legislation is being passed at a breakneck speed. We saw numerous new laws on the books in the last year, and dozens more are being considered in various states. Many citizens are in favor...more
Over the past 10–15 years, we have seen an explosion of legislative activity related to restrictive covenants. This activity is happening not only in state legislatures but on the federal level as well. While each proposal is...more
Yet another state has made it harder for businesses to implement restrictive covenants—this time with criminal penalties....more