With the FTC Ban on non-competes essentially dead in the Courts of Appeal, various states and agencies have taken up the mantle to further limit or expand the use of restrictive covenants for certain populations in 2025....more
5/7/2025
/ Amended Regulation ,
Employees ,
Employer Liability Issues ,
Employment Contract ,
Federal Trade Commission (FTC) ,
Health Care Providers ,
Independent Contractors ,
NLRB ,
Non-Compete Agreements ,
Physicians ,
Restrictive Covenants ,
State Labor Laws
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 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
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
Yesterday, the Court in the ATS Trees v. FTC case denied Plaintiff ATS Trees’ Motion for Stay and Enjoin the FTC recent Ban on Non-Compete agreements (“Final Rule”), because, the Court held, ATS Trees failed to establish...more
7/24/2024
/ Employees ,
Employer Liability Issues ,
Employment Contract ,
Federal Trade Commission (FTC) ,
Final Rules ,
FTC Act ,
Hiring & Firing ,
Labor Regulations ,
Non-Compete Agreements ,
Regulatory Requirements ,
State Labor Laws
An administrative law judge (“ALJ”) of the National Labor Relations Board (“NLRB”) in J.O. Mory, Inc. recently required an employer to rescind certain restrictive covenants in its employment agreements. The decision is yet...more
7/19/2024
/ Administrative Law Judge (ALJ) ,
Employee Handbooks ,
Employee Rights ,
Employees ,
Employer Liability Issues ,
Employment Contract ,
Employment Policies ,
Hiring & Firing ,
NLRA ,
NLRB ,
Non-Compete Agreements ,
Regulatory Agenda ,
Regulatory Reform ,
Restrictive Covenants ,
Section 7
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
The Court ruled on Wednesday, July 3, what most of the legal community already believed: that the FTC lacked the substantive rulemaking authority to issue a nationwide ban on non-competes between employers and workers....more
The FTC’s recently issued Final Rule banning non-competes for most workers prohibits an employer from (1) threatening to enforce a non-compete against a worker, (2) advising the worker that, due to a non-compete, they should...more
6/21/2024
/ Corporate Counsel ,
Employees ,
Employer Liability Issues ,
Employment Contract ,
Federal Trade Commission (FTC) ,
Final Rules ,
Good Faith ,
Non-Compete Agreements ,
Restrictive Covenants ,
Safe Harbors ,
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
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
While the two federal actions in Texas challenging the FTC’s non-compete ban have garnered much of the attention to date, a challenge of the FTC’s rule brought by a small tree trimming business in Pennsylvania is now in the...more
The FTC’s Final Rule banning non-competes in worker agreements contains a noteworthy exception that its provisions “do not apply where a cause of action related to a non-compete clause accrued prior to the effective date.” ...more
5/20/2024
/ Cause of Action Accrual ,
Constitutional Challenges ,
Due Process ,
Employees ,
Employer Liability Issues ,
Employment Contract ,
Federal Trade Commission (FTC) ,
Fifth Amendment ,
Final Rules ,
Hiring & Firing ,
Non-Compete Agreements ,
Proposed Rules
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
5/1/2024
/ Competition ,
Confidential Information ,
Constitutional Challenges ,
Corporate Counsel ,
Employer Liability Issues ,
Employment Contract ,
Federal Labor Laws ,
Federal Trade Commission (FTC) ,
Final Rules ,
Hiring & Firing ,
Intellectual Property Protection ,
Labor Reform ,
Non-Compete Agreements ,
Popular ,
Restrictive Covenants
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
This afternoon, the FTC voted to adopt a proposed final rule banning most non-competes with workers in the United States. The final rule provides that it is an unfair method of competition—and therefore a violation of Section...more
4/24/2024
/ Employees ,
Employer Liability Issues ,
Employment Contract ,
Federal Labor Laws ,
Federal Trade Commission (FTC) ,
Final Rules ,
FTC Act ,
Hiring & Firing ,
Labor Reform ,
Non-Compete Agreements ,
Proposed Rules ,
Trade Secrets
Seyfarth Synopsis: The health care sector faces escalating cybersecurity risks given its size, technological dependence and the sensitive nature of data used therein. According to the U.S. Department of Health and Human...more
1/23/2024
/ Cybersecurity ,
Data Breach ,
Data Privacy ,
Data Protection ,
Data Security ,
Data Theft ,
Department of Health and Human Services (HHS) ,
Electronic Protected Health Information (ePHI) ,
Employer Liability Issues ,
Health Care Providers ,
Health Insurance Portability and Accountability Act (HIPAA) ,
Information Technology ,
OCR ,
PHI ,
Policies and Procedures ,
Popular
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
On August 10, 2022, Colorado’s new statute further restricting non-competition and non-solicitation provisions becomes effective. The new law, which passed earlier this year, continues Colorado’s trend toward increased...more
A federal court in Texas recently provided useful insights on what constitutes “solicitation” by a former employee under that employee’s restrictive covenant with his former employer, and the court provided further insights...more
In a strengthening of company contractual rights, the Louisiana Legislature recently expanded its state non-compete statute by permitting a corporation, partnership, or limited liability company to enter into agreements with...more
A recent editorial authored by two female doctors in the Canadian Medical Association Journal proclaims that, “in the era of #MeToo, it is time for physicians to acknowledge that the medical profession is not immune to...more
2/25/2019
/ #MeToo ,
Co-Workers ,
Employer Liability Issues ,
Employment Litigation ,
Employment Policies ,
Equal Employment Opportunity Commission (EEOC) ,
Healthcare ,
Hostile Environment ,
Physicians ,
Sex Discrimination ,
Sexual Harassment