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Appeals Non-Compete Agreements

Kerr Russell

What Ever Happened to the Ban on Covenants Not to Compete?

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Question: Last year we heard that the Federal Trade Commission was going to ban covenants not to compete. It was a big deal at the time. Nothing has been said about this in months. Is this still going to happen? If so, when? ...more

Stevens & Lee

FTC Requests Additional 60 Days to Consider Dropping Defense of Noncompete Ban

Stevens & Lee on

A reconstituted Federal Trade Commission (Commission) has asked the Fifth Circuit Court of Appeals to grant it a 60-day continuance to consider whether to drop the defense of its rule banning noncompetes. As previously...more

Fisher Phillips

Meet the New Boss – Same as the Old Boss? Cryptic FTC Filings Suggest Non-Compete Ban May Not Be Dead After All

Fisher Phillips on

Most observers following the saga of the Federal Trade Commission’s non-compete ban expected a final nail in the coffin last week – voluntary dismissal of the appeal that Biden-era leadership filed to keep the ban alive. That...more

Foley & Lardner LLP

A Shot of Reality: Court Denies Dealer’s Request for Preliminary Injunction to Stop Termination of Dealership Agreement

Foley & Lardner LLP on

A federal court recently denied a dealer’s request for preliminary injunction to halt the termination of a dealership agreement with a manufacturer of liquor control systems. The dealer’s acts and omissions during the...more

Morgan Lewis

Massachusetts High Court Clarifies Noncompete Law’s Scope, Declines to Let Nonsolicits ‘Through the Back Door’

Morgan Lewis on

In Miele v. Foundation Medicine, Inc., the Massachusetts Supreme Judicial Court (SJC) clarified that the Massachusetts Noncompetition Agreement Act (MNAA or the Act) does not apply to a forfeiture clause triggered by a breach...more

Holland & Knight LLP

Supreme Judicial Court Clarifies Scope of Massachusetts Noncompetition Agreement Act

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The Massachusetts Supreme Judicial Court (SJC) has ruled that a forfeiture clause triggered by a breach of a non-solicitation agreement is not a "forfeiture for competition agreement" under the Massachusetts Noncompetition...more

Seward & Kissel LLP

Employment Litigation Roundup: May 2025

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Fifth Circuit holds six-month delay in ADA accommodation request was unreasonable - The Fifth Circuit Court of Appeals in Strife v. Aldine Independent School District partially reversed the lower court’s dismissal of an...more

Proskauer - Employee Benefits & Executive...

Tenth Circuit Affirms Distinction Between Forfeiture and Penalty for Competition

In Lawson v. Spirit AeroSystems, Inc., the U.S. Court of Appeals for the Tenth Circuit upheld the forfeiture of certain stock awards for violating a covenant not to compete. Like the Seventh Circuit in LKQ Corp. v....more

Morris James LLP

Delaware Supreme Court Clarifies Enforcement of Forfeiture-for-Competition Provisions

Morris James LLP on

LKQ Corp. v. Rutledge, C.A. No. 110, 2024 (Del. Dec. 18, 2024) - In this en banc decision, the Delaware Supreme Court answered a certified question from the United States Court of Appeals for the Seventh Circuit...more

Jenner & Block

Delaware Supreme Court Reaffirms Reluctance to Blue-Pencil Overbroad Restrictive Covenants in Sunder v. Jackson

Jenner & Block on

The Delaware Supreme Court’s decision in Sunder Energy, LLV v. Jackson, No. 455, 2023, 2024 Del. LEXIS 407 (December 10, 2024) reaffirmed the courts’ limited willingness to modify or “blue-pencil” overbroad restrictive...more

Akin Gump Strauss Hauer & Feld LLP

Update on the State of Non-compete Restrictions (LaborSpeak)

In August 2024, a federal district court set aside the Federal Trade Commission’s rule banning non-competes. The FTC recently halted its appeals of that ruling and a similar decision, likely signaling the abandonment of a...more

Foley & Lardner LLP

One Year Later, FTC’s Noncompete Ban Remains on Life Support, as FTC Mulls Pulling the Plug

Foley & Lardner LLP on

As readers of this blog will recall, last April, the Federal Trade Commission (FTC) voted along party lines to finalize a rule (the Noncompete Ban) that would have banned the vast majority of employee noncompete agreements...more

Cranfill Sumner LLP

Fifth and Eleventh Circuits Grant FTC’s Motion to Stay Appeals Challenging Non-Compete Ban

Cranfill Sumner LLP on

On March 15, 2025, the Fifth Circuit granted the FTC’s motion for a 120-day stay of the agency’s appeal of the district court decision to block its proposed ban on non-competes. The Eleventh Circuit followed suit on March 20,...more

Troutman Pepper Locke

Feeling Competitive: The Reasonableness of Forfeiture-for-Competition Provisions

Troutman Pepper Locke on

In 2024, employers rushed to track the twists and turns of the Federal Trade Commission’s (FTC) noncompete ban, which attempted to limit the enforceability of agreements that restrict employees from working for a competitor...more

Seward & Kissel LLP

Employment Litigation Roundup: March 2025

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Connecticut declines to restrain departed founder from using client list - A Connecticut federal judge in TJT Capital Group, LLC v. Timothy McFadden denied an investment adviser’s motion for a temporary restraining order...more

FordHarrison

"In Any Capacity" Language Dooms Georgia Non-Compete Provision

FordHarrison on

Prior to the enactment of Georgia’s Restrictive Covenant Act (“GRCA”), Georgia courts uniformly struck down non-compete provisions that used “in any capacity language”, i.e., a non-compete that prohibited an employee from...more

Blake, Cassels & Graydon LLP

Colombie-Britannique : la Cour d’appel confirme un jugement sommaire rejetant une demande d’action collective

Le 13 février 2025, la Cour d’appel de la Colombie-Britannique (la « CACB ») a rejeté une demande d’autorisation d’interjeter appel du jugement sommaire rendu dans l’affaire Latifi v. The TDL Group Corp., confirmant que des...more

Epstein Becker & Green

Massachusetts High Court To Weigh In on Forfeiture-for-Solicitation Provisions in Era of Massachusetts Noncompetition Agreement...

Epstein Becker & Green on

On Monday, March 3, 2025, the Massachusetts Supreme Judicial Court (“SJC”) heard argument in Miele v. Foundation Medicine, Inc., regarding whether the Massachusetts Noncompetition Agreement Act, G. L. c. 149, § 24L (the...more

Epstein Becker & Green

Amicus Brief Filed for 10 National Industry Organizations to Uphold District Court’s Order Setting Aside the FTC Noncompete Ban

Epstein Becker & Green on

The fight to resurrect the FTC’s Final Rule (the “Final Rule”) banning noncompetes continues in the U.S. Court of Appeals for the Fifth Circuit. In August 2024, mere days before the Final Rule was to take effect, Judge...more

Lewitt Hackman

NASAA Guidance for Franchise Non-Competes

Lewitt Hackman on

Last May, the Federal Trade Commission looked to ban non-compete agreements in most employment contracts aside from franchise agreements. Although scheduled to become effective in September, a federal court vacated the ruling...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Seventh Circuit Rules Forfeiture-for-Competition Clauses Under Delaware Law Enforceable and Not Subject to Reasonableness Review

In 2021, LKQ Corporation (LKQ) filed suit against Robert Rutledge, its former plant manager, in the U.S. District Court for the Northern District of Illinois. LKQ alleged that Rutledge’s working for a competitor within nine...more

Blank Rome LLP

New Year, New FTC Chair, and Renewed Focus on Non-Compete Agreements

Blank Rome LLP on

It is nearly impossible to think about the Federal Trade Commission (“FTC”) without thinking about the chaos caused by the non-compete ban it approved last year over vociferous dissent only to have the ban vacated and set...more

Blank Rome LLP

Longtime Iowa Taxpayers Lose Out on Capital Gains Deduction

Blank Rome LLP on

The tax consequences of the sale of a business are complex, and strategizing to avoid one tax type may lead to unanticipated tax in another form. A recent decision of the Court of Appeals of Iowa illustrates this point. Clark...more

Faegre Drinker Biddle & Reath LLP

FTC Files Opening Brief in Fifth Circuit Appeal Defending Noncompete Rule

Background - In August 2024, the U.S. District Court for the Northern District of Texas issued a summary judgment order holding that the Federal Trade Commission (FTC) rule banning post-employment noncompetes (Noncompete...more

Stevens & Lee

FTC Files Opening Brief in Noncompete Rule Appeal

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On Jan. 2, 2025, the Federal Trade Commission (FTC or Commission) filed its opening brief with the Fifth Circuit Court of Appeals in Ryan LLC et.al. v. Federal Trade Commission, the case in which the plaintiffs are...more

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