News & Analysis as of August 14, 2025

Unfair Competition

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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 -

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

Jenner & Block on 7/17/2025

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

Sausage Race Heats Up: Hormel Foods Sues Sausage Competitor Johnsonville Claiming Trade Secrets Misappropriation

Saul Ewing LLP on 7/1/2025

Just in time for grilling season in the Midwest, Hormel Foods Corporation (“Hormel”) filed a federal lawsuit in the District of Minnesota against its competitor, Johnsonville, LLC (“Johnsonville”), and two former Hormel...more

Employee pirates can plunder a business. Arrrgh ye ready?

Constangy, Brooks, Smith & Prophete, LLP on 4/8/2025

Piracy is defined as robbery by ship- or boat-borne attackers upon another ship or a coastal area, with a goal of stealing cargo or other valuables. During the Golden Age of Piracy, from the 1680s to the 1720s, infamous...more

BC Court of Appeal Confirms “No hire” Clause Not Intended to Injure Employees

Bennett Jones LLP on 3/12/2025

In Latifi v The TDL Group Corp., 2025 BCCA 45, (Latifi) the BC Court of Appeal upheld the summary dismissal of a proposed class action against the Tim Hortons franchisor in Canada. The underlying dispute between the...more

Timeline: What Happens After Breaking a Non-Compete Agreement in Texas

Hendershot Cowart P.C. on 3/11/2025

Responding to a Non-Compete Violation - When an employer discovers a potential non-compete violation, they generally react within 1-4 weeks, though this can be shorter if the violation poses an immediate competitive threat....more

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

Epstein Becker & Green on 2/20/2025

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

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

Littler on 1/13/2025

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

FTC Files Opening Brief in Fifth Circuit Appeal Defending Noncompete Rule

Faegre Drinker Biddle & Reath LLP on 1/9/2025

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

October’s Spookiest Restrictive Covenant Developments: An Employer’s 5-Ingredient Witches’ Brew to Ward Off Harm

Fisher Phillips on 11/1/2024

“Magic words,” “TRAPs,” and the federal non-compete ban rising from the dead? October had several spooky developments in restrictive covenant law, but no need to be frightened! We’ve got you covered with updates, insights,...more

FTC Noncompete Rule Risks a Wave of State AG Actions

Troutman Pepper Locke on 8/26/2024

On April 23, the FTC promulgated its final rule banning noncompetes nationwide. Originally published in Law360 - May 23, 2024....more

Injunction Junction: Judicial Challenges to New Employment Rules

Arnall Golden Gregory LLP on 6/19/2024

April 2024 saw a whirlwind of activity on the employment front as executive federal agencies issued a wave of new rules. On April 15, 2024, Equal Employment Opportunity Commission (“EEOC”) announced its final rule...more

Understanding the FTC’s Non-Compete Clause Rule and Its Impact on NDAs

WilmerHale on 5/31/2024

As we previously reported, the Federal Trade Commission (FTC) announced on April 23, 2024, its Non-Compete Clause Rule (Final Rule), which aims to ban all new post-employment non-competition restrictions and invalidate most...more

California Employers Face Feb. 14 Deadline and Tighter Non-Compete Prohibitions

ArentFox Schiff on 1/26/2024

California has long had the most restrictive laws against employee non-compete agreements. Effective January 1, two new legislative bills, Senate Bill 699 and Assembly Bill 1076, tightened California’s restrictions even...more

One Bad Apple Won’t Spoil the Rest of the Bunch’s Ability to Fairly Compete in Matthews International Corp. v. Lombardi

Sheppard Mullin Richter & Hampton LLP on 10/28/2022

The tension between encouraging free and fair competition and protecting competitive advantages derived from hard work and ingenuity is at the very heart of trade secrets law. Among other things, this tension manifests itself...more

Illegal Deal? Ninth Circuit Rejects Attempt to Revive No-Poaching Claims

Sheppard Mullin Richter & Hampton LLP on 12/1/2021

No-hire or “no-poaching” agreements have recently come under increasing scrutiny by the federal government, as well as various state regimes. However, a recent Ninth Circuit decision upholding a no-poach agreement highlights...more

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