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The Massachusetts legislature passed the Massachusetts Noncompetition Agreement Act (MNAA) in 2018, culminating a longstanding effort to balance employers’ rights to protect legitimate business interests—such as trade...more
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
Arizona employer cannot exclude settlement communications from former employee’s retaliation complaint - In Flores v. Rafi Law Group PLLC, the plaintiff accused her law firm employer of retaliating against her by (i)...more
On November 25, 2024, the Indiana Court of Appeals ruled that a former chief operating officer (COO) at a medical fee collection company did not breach noncompete agreements and a nondisclosure provision when she took a job...more
The legal arguments advanced in these court cases mainly concern whether the FTC has the statutory authority to enact such a ban. Shortly before the September 4, 2024 effective date of FTC’s ban on covenants not to compete,...more
The Beltway Buzz is a weekly update summarizing labor and employment news from inside the Beltway and clarifying how what’s happening in Washington, D.C., could impact your business....more
Last Friday, the Federal Trade Commission (“FTC”) gave notice to appeal Judge Brown’s nationwide bar on the FTC’s final rule creating a Non-Compete Ban or enforcement of the rule in the case of Ryan LLC v. Federal Trade...more
The Federal Trade Commission (FTC) has filed a notice of appeal of the Northern District of Texas’s decision granting plaintiffs’ summary judgment motion and “setting aside” the agency’s rule banning nearly all employee...more
The Federal Trade Commission has appealed two federal trial court decisions – one in Texas and one in Florida – that prevented the agency from enforcing its near-total ban on non-compete agreements. The Texas appeal, filed on...more
On Oct. 18, the Federal Trade Commission (FTC) expectedly filed a notice of appeal to the Fifth Circuit Court of Appeals in Ryan LLC et.al. v. Federal Trade Commission. As has been previously reported, Judge Ada M. Brown in...more
As the Federal Trade Commission’s Non-Compete Rule is appealed through the federal courts, a ruling from a court in Cleveland, Ohio, exemplifies how certain courts have recently approached non-compete and non-solicitation...more