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Employees Restrictive Covenants Corporate Counsel

Jenner & Block

Client Alert: Employers Beware: Employees Are Seeking Damages for Unenforceable Noncompetes

Jenner & Block on

We have seen a rise in employees going on the offensive and suing their former employers for damages for not informing them that their noncompete is invalid under the applicable state law or for exaggerating the scope of a...more

Whiteford

Employment Law Update: Virginia Bans Noncompete Agreements with Non-Exempt Employees

Whiteford on

Virginia has further restricted noncompete agreements. Effective July 1, 2025, Virginia Code § 40.1-28.7:8 will prohibit Virginia employers from entering into non-competition agreements with employees who are classified as...more

McGuireWoods LLP

Employers Note: Virginia Bans Noncompetes for All Overtime-Eligible Workers

McGuireWoods LLP on

Beginning July 1, 2025, Virginia will prohibit noncompete agreements for all employees eligible for overtime pay. The new law builds on previous prohibitions for “low-wage employees” in the Commonwealth....more

ArentFox Schiff

Coming Soon: Changes to State Noncompete Laws in Virginia, Arkansas, and Wyoming

ArentFox Schiff on

Noncompete provisions continue to be governed by a constantly changing patchwork of state level legislation. In general, recent laws tend to limit their use among low wage earners or individuals in certain professions, such...more

Proskauer - Trade Secrets

Seventh Circuit Decision Highlights Distinction Between Traditional Non-Compete and Forfeiture-for-Competition

A recent decision by the U.S. Court of Appeals for the Seventh Circuit allowed an employer to enforce a “forfeiture-for-competition” against a former plant manager. The Court explained that, under Delaware law, forfeiture-for...more

Troutman Pepper Locke

FTC and DOJ Jointly Issue Antitrust Guidelines Related to Labor

Troutman Pepper Locke on

Practically on the eve of the inauguration, the Federal Trade Commission (FTC) and the Department of Justice, Antitrust Division (DOJ), jointly issued antitrust guidelines for business activities affecting workers. The FTC's...more

Foley & Lardner LLP

Complying With Recent Guidance From Delaware Courts Regarding Enforcement of Noncompetes

Foley & Lardner LLP on

In line with the national trend making noncompetes more difficult to enforce, a number of Delaware courts have recently refused to “blue pencil” overbroad noncompetition agreements and have stricken them in their entirety. As...more

Wilson Sonsini Goodrich & Rosati

Non-Solicitation Clauses Face Antitrust Scrutiny: Key Takeaways from St. Joseph's v. NAPA

A recent decision from the United States District Court underscores the antitrust risks of non-solicitation clauses in service agreements. In St. Joseph’s Hospital Health Center v. American Anesthesiology of Syracuse, P.C. et...more

Ballard Spahr LLP

CFPB: Confidentiality Agreements Can’t Deter Whistleblowers from Reporting Alleged Violations

Ballard Spahr LLP on

The CFPB warned on July 24, 2024,  that confidentiality agreements that employees of a company are required to sign likely violate federal law if those agreements imply that employees could face retaliation from their...more

Skadden, Arps, Slate, Meagher & Flom LLP

FAQs About the FTC’s Broad New Ban on Noncompetes

When the Federal Trade Commission (FTC) issued its long-awaited final rule banning virtually all noncompete clauses between workers and employers, it also published 500-plus pages of commentary....more

Seyfarth Shaw LLP

The FTC’s “Good Faith” Exception to the Non-Compete Ban: Pending Legal Challenges Are Not a Basis for Non-Compliance

Seyfarth Shaw LLP on

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

Seyfarth Shaw LLP

Golden State Crackdown on Non-Competes: California Enacts Second Non-Compete Law To Curtail Use of Non-Competes With Employees

Seyfarth Shaw LLP on

California has done it again! We reported last month concerning California’s new non-compete law that furthers the state’s protections for employee mobility and seeks to void out of state employee non-compete agreements....more

Littler

Minnesota Is Poised to Enact a Law Banning Virtually All Non-Compete Agreements

Littler on

A proposed law banning virtually all covenants not to compete (also known as non-compete agreements) is headed to the Minnesota State Senate and House of Representatives, where it is widely expected to pass.  Once it arrives...more

White & Case LLP

Four Takeaways From The FTC’s Unprecedented Crackdown On Noncompete Agreements

White & Case LLP on

The Federal Trade Commission (FTC) kicked off 2023 by using Section 5 of the FTC Act to take legal action against three companies and two individuals, forcing them to drop noncompete provisions. This is the first time that...more

Epstein Becker & Green

FTC Proposes Rule Banning Noncompetes: What Employers Need to Know Now

On Thursday, January 5, 2023, the Federal Trade Commission (FTC) made headlines with its announcement that it is proposing a new rule that would ban employers from using noncompete clauses (the “rule”)....more

FordHarrison

FTC Proposes Rule To Ban Noncompete Clauses

FordHarrison on

On January 5, 2023, the Federal Trade Commission (FTC) released a Notice of Proposed Rulemaking (NPRM) that would ban employers from imposing noncompetes on their workers. The proposed rule would prohibit employers from...more

Faegre Drinker Biddle & Reath LLP

Top Noncompete Developments of 2022

2022 was a relatively quiet year in terms of noncompete developments. However, both state legislatures and courts continued to take steps to narrow the circumstances under which noncompetition and employee non-solicitation...more

Faegre Drinker Biddle & Reath LLP

Third Circuit Rejects Employer’s Attempt to Block Executive’s Move to Rival Despite Non-Compete Agreement

As we have written about previously, an increasing number of states, and Washington, D.C., have limited the circumstances under which employers can bind their employees to non-compete and similar agreements, particularly when...more

Littler

NY Attorney General Schneiderman Declares “War” on Non-Compete Agreements That He Perceives as Overbroad

Littler on

In an initiative that is virtually without precedent in New York, in the past two months (June 15, June 22 and August 4) Attorney General Schneiderman announced agreements with three separate companies in three different...more

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