News & Analysis as of

Non-Compete Agreements Employment Litigation Corporate Counsel

Non-Compete Agreements are contracts, typically formed in employment or business purchase contexts, where one party agrees to refrain from engaging in a particular line of work or pursuing business within a... more +
Non-Compete Agreements are contracts, typically formed in employment or business purchase contexts, where one party agrees to refrain from engaging in a particular line of work or pursuing business within a certain industry or locale. The purpose of these agreements is to protect employers or business purchasers from competition stemming from former employees or former owners of a business. less -
Jenner & Block

Delaware Court Refuses to Enforce or Modify Overbroad Noncompete in Cleveland Integrity Services v. Byers

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In Cleveland Integrity Services, LLC v. Byers (Del. Ch. Feb. 28, 2025), the Delaware Court of Chancery declined to enforce a two-year non-compete agreement that it found to be geographically overbroad and refused to narrow or...more

Foley & Lardner LLP

Delaware Court Confronts Issue of First Impression: When a Company Attempts to Enforce a Noncompete Seeking Only Damages, Does the...

Foley & Lardner LLP on

In Fortiline, Inc. v. McCall, the plaintiffs sought to enforce a noncompetition agreement against its former employees through a preliminary injunction. The court denied the injunction, holding the noncompetition agreements...more

ArentFox Schiff

How Policy Changes at the NLRB Could Affect Severance and Noncompete Agreements

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On February 14, the new general counsel of the National Labor Relations Board (NLRB), William Cowen, rescinded more than 25 previously issued policy memoranda....more

Sheppard Mullin Richter & Hampton LLP

Acting General Counsel of NLRB Issues First GC Memorandum, Rescinding Controversial Pro-Labor Memoranda

On February 14, 2025, the Acting General Counsel of the National Labor Relations Board (“NLRB”) William B. Cowen issued his first General Counsel Memorandum (“GC Memo”) GC 25-05 rescinding nearly all of the Biden...more

ArentFox Schiff

Trade Secrets and Noncompete Agreements: Analysis of Significant Cases and Emerging Trends

ArentFox Schiff on

Trade secrets, noncompetes, and other restrictive covenants continued to make headlines in 2024. Most notably, the Federal Trade Commission (FTC) published a final rule imposing a near total ban on employee noncompetes that...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

Mintz

[Podcast] Mintz on Air: Practical Policies - Non-Competes: Are They Still a Thing?

Mintz on

In the latest episode of the Mintz on Air: Practical Policies Podcast, Member Jen Rubin hosts a conversation on the status and enforceability of non-compete agreements. This episode is part of a series of conversations...more

Clark Hill PLC

Washington Supreme Court Says Employers May Not Unreasonably Restrain Employees From Working for Competitors

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In a case of first impression, the Washington Supreme Court interpreted Washington law regarding noncompete agreements to broadly protect employees who earn less than twice the state minimum wage from unreasonable...more

Foley & Lardner LLP

Complying With Recent Guidance From Delaware Courts Regarding Enforcement of Noncompetes

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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

Littler

2024’s Top Stories in Unfair Competition and Trade Secrets Law

Littler on

2024 was quite a year in unfair competition and trade secrets law, with the Federal Trade Commission’s final rule on non-competes garnering widespread mainstream media attention. While the FTC final rule has been set aside...more

Skadden, Arps, Slate, Meagher & Flom LLP

FAQs About the Set-Aside of the FTC’s Ban on Noncompetes

In Ryan LLC v. Federal Trade Commission, the Federal Trade Commission’s (FTC’s) final noncompete rule was held to be “unlawful and set aside” by Judge Ada Brown of the U.S. District Court for the Northern District of Texas....more

Sheppard Mullin Richter & Hampton LLP

California Court of Appeal Rules That Partial Sale of Business Can Bind Seller-Owner to a Noncompetition Agreement

In Samuelian v. Life Generations Healthcare, LLC, — Cal. App. 5th —, 2024 WL 3878448 (Cal. App. Aug. 20, 2024), the California Court of Appeal answered two long outstanding questions of California law concerning the...more

Sheppard Mullin Richter & Hampton LLP

Final Word on Final Rule? Texas District Court Eviscerates FTC’s Non-Compete Ban

On July 3, 2024, Judge Ada Brown of the U.S. District Court for the Northern District of Texas entered a limited, preliminary injunction barring the Federal Trade Commission (“FTC”) from enforcing its controversial Final Rule...more

Fisher Phillips

Two Recent Federal Court Decisions Conflict with Exception to FTC Non-Compete Ban: Your 3 Steps for Litigating Accrued Non-Compete...

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Even though the FTC’s impending rule that will ban most non-competition agreements specifically carves out claims for violations that accrue before the rule goes into effect – an exception that many federal courts have...more

McDermott Will & Schulte

FTC Final Noncompete Rule: Game Plan Checklist

With the Federal Trade Commission’s Final Rule that would ban noncompetes nationwide set to go into effect on September 4, 2024, assuming pending litigation doesn’t cause any delays, employers should begin planning now to...more

ArentFox Schiff

The Impact of the FTC’s Noncompete Rule on Current and Future Noncompete Litigation

ArentFox Schiff on

On April 23, the Federal Trade Commission (FTC) voted 3-2 to publish a final rule with sweeping effect, purporting to bar prospectively and invalidate retroactively most employee noncompete agreements....more

Mintz

[Event] Annual Employment Law Summit - May 15th, San Diego, CA

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The agenda for Mintz’s Annual Employment Law Summit taking place on May 15th in San Diego is now available! This year, we are thrilled to feature Hon. William McCurine as our keynote speaker. The segments this year include:...more

Fisher Phillips

Workplace Law Forecast 2024 - Your workplace law recap for 2023 and predictions for 2024 to help you prepare for the coming year.

Fisher Phillips on

When I reflect on the relationship that our firm has with our clients, I’m most proud of the fact that you can always count on us. That often means defending complex litigation, steering you through regulatory threats,...more

Epstein Becker & Green

Preemption Questions Continue as FTC and NLRB Fight Restrictive Covenants

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As federal administrative agencies wade further into rulemaking and adjudicative efforts to outlaw noncompetes and restrictive covenants, defendants are beginning to raise preemption arguments in response to state court...more

DarrowEverett LLP

Q3 Employment Law Updates: Enforcement Actions Bring Much for Employers to Consider

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The third quarter of 2023 has been pretty exciting as far as employment lawyers are concerned. Substantial regulations have been proposed and the pressure from federal agencies continues to rise. We will talk about some of...more

Proskauer - Labor Relations Update

It Begins…NLRB Regional Director Targets Noncompetes in New Complaint

As recently foreshadowed, the National Labor Relations Board (“NLRB” or “Board”) now appears poised to weigh in on whether noncompete agreements, even those that may be legal under state law, violate the National Labor...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

Fisher Phillips

The Top 17 Workplace Law Stories from May 2022

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It’s hard to keep up with all the recent changes to labor and employment law. While the law always seems to evolve at a rapid pace, there have been an unprecedented number of changes for the past few years—and this past month...more

Littler

Ontario, Canada Appeal Court Decides Non-competition Clause in Employment Agreement Governed by Common Law is Unenforceable

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In M & P Drug Mart Inc. v. Norton, 2022 ONCA 398, the Court of Appeal for Ontario (OCA) dismissed an employer’s appeal of an application judge’s decision that a non-competition clause in an employment agreement governed by...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

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