News & Analysis as of

Non-Compete Agreements Unfair Competition

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 -
Stevens & Lee

The Administrative State, a Three-Legged Stool, the Supreme Court and FCC v. Consumers’ Research

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The U.S. Supreme Court recently handed down its decision in Federal Communications Commission v. Consumers’ Research, a case involving the question whether Congress’s delegation of authority to the FCC to implement provisions...more

Amundsen Davis LLC

Employee Non-Competes: Where We Stand Today

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A little less than a year ago, businesses were scrambling to get ready for the then-impending Federal Trade Commission’s (FTC) final rule that would have blocked nearly all non-compete agreements between employers and...more

Venable LLP

More Red Tape on Colorado Noncompete and Nonsolicit Agreements

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Colorado has taken another step toward narrowing the circumstances in which restrictive covenants—such as covenants not to compete and customer nonsolicits—may be used. Senate Bill 25-083, which takes effect August 6, 2025,...more

Littler

The (Less-Than-Golden) State of Confidentiality Provisions in California

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It is well known that California takes a dim view towards restrictive covenants in the workplace. Business & Professions Code Section 16600 prohibits employee non-compete agreements, stating that “every contract by which...more

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

Mintz

I Heart FTC: Proposed New York Bill Would Continue Biden FTC’s Antitrust Vision and Policies [Updated on July 16, 2025]

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After the FTC issued a replacement of the 2016 Antitrust Guidance for Human Resource Professionals on January 16, 2025, Commissioner – now Chair – Andrew N. Ferguson, joined by Commissioner Melissa Holyoak, punctuated his...more

Fisher Phillips

Will Florida’s New Non-Compete Bill Attract Tech Companies to the Sunshine State? A Thought Experiment

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Florida just enacted a game-changer of a law that makes it the friendliest state in the country for enforcing non-competes – and could also revolutionize how tech companies view the Sunshine State as a place to set up...more

Saul Ewing LLP

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

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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

Constangy, Brooks, Smith & Prophete, LLP

Employee pirates can plunder a business. Arrrgh ye ready?

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

A&O Shearman

New York State Court Finds Violation Of Donnelly Act Stemming From Ski Area Acquisition

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On February 26, 2025, the Supreme Court of the State of New York, County of Onondaga, rendered a decision involving an alleged anticompetitive acquisition under New York’s Donnelly Act. This decision demonstrates the...more

Bennett Jones LLP

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

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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

Hendershot Cowart P.C.

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

Hendershot Cowart P.C. on

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

Hogan Lovells

FTC Chair announces Joint Labor Task Force, commits to facilitating President Trump’s war on DEI

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The Federal Trade Commission (FTC), under the new leadership of Republican Chair Andrew Ferguson, has announced the formation of a Joint Labor Task Force to “prioritize rooting out and prosecuting deceptive, unfair, and...more

Seyfarth Shaw LLP

FTC Launches Joint Task Force to Investigate and Prosecute Non-Compete Agreements, as FTC Chairman declares the GOP a “Workers’...

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As Republicans regain control of the Federal Trade Commission (“FTC”) under the Trump-Vance Administration, employers that looked to maintain and enforce their non-compete agreements with employees may have found solace in...more

Stevens & Lee

New Labor Task Force to Investigate and Prosecute Unfair and Anticompetitive Labor Market Conduct

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On Feb. 26, Federal Trade Commission (FTC) Chairman Andrew Ferguson issued a “Directive Regarding Labor Markets Task Force” pursuant to which a Joint Labor Task Force is being organized consisting of the Directors of the...more

Parker Poe Adams & Bernstein LLP

FTC's Scrutiny of Unfair Labor Competition Includes Non-Competes

While the Trump administration appears to have little interest in defending the Federal Trade Commission’s regulatory ban on non-competition agreements in employment, the agency recently signaled its intent to scrutinize at...more

Kilpatrick

FTC Launches First Ever “Joint Labor Task Force” Prioritizing Deceptive, Unfair, and Anticompetitive Labor Market Practices

Kilpatrick on

On February 26, 2025, the Federal Trade Commission (“FTC”) announced the launch of a Joint Labor Task Force (“Task Force”) aimed at “rooting out and prosecuting deceptive, unfair, and anticompetitive labor-market practices...more

Vinson & Elkins LLP

FTC Labor Market Task Force: A Surprising Continuation of Biden-Era Priorities

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On February 26, 2025, the Federal Trade Commission (“FTC”) announced the formation of a Joint Labor Task Force aimed at addressing deceptive, unfair, and anticompetitive practices impacting labor markets. The FTC signaled an...more

Fisher Phillips

FTC’s New Task Force to Target Noncompetes: 5 Top Answers for Employers

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In a somewhat surprising development, the Federal Trade Commission just announced that it intends to continue scrutinizing noncompete agreements and other arrangements the FTC feels are unfair to workers. Last week, Federal...more

Polsinelli

2024 Recap of Franchise Developments and 2025 Trends to Watch

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There were a number of important and potentially impactful developments in 2024 that we predict will continuing developing and trending in 2025. Some of these topics are also discussed in other articles in this annual update....more

WilmerHale

FTC Launches Joint Labor Task Force: Trump 2.0 Continues Antitrust Focus on Labor Markets

WilmerHale on

On February 26, 2025, Federal Trade Commission (“FTC”) Chair Andrew Ferguson announced that the FTC would create the agency’s “first ever” Joint Labor Task Force (the “Task Force”), focusing on anticompetitive labor market...more

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

FTC Launches Task Force to Protect Competition in Labor Markets, Scrutinize Noncompete Agreements

On February 26, 2025, Federal Trade Commission (FTC) Chairman Andrew N. Ferguson directed the agency to form a new “Joint Labor Task Force” that will focus on enforcing federal antitrust laws to protect competition in labor...more

Troutman Pepper Locke

FTC Refocuses Its Resources to Continue Its Work for Labor Market

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In what may be a surprise to those who thought that restrictions on the use of noncompetes would go away with the change in administration, this week, the Federal Trade Commission (FTC) announced that the agency will form a...more

Vedder Price

Pair of FTC Actions Underscore Continued Focus on Labor Issues

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The FTC took two actions on February 26, 2025 to emphasize its continued focus on labor markets and to rededicate its efforts to a policy priority in common with those of the previous Administration. First, the FTC approved...more

Bradley Arant Boult Cummings LLP

New Chairman of the FTC: Can You Compete?

The Federal Trade Commission has a new chairman — Andrew Ferguson. Prior to becoming chairman, Ferguson was sworn in as an FTC commissioner in April 2024 under then-President Joe Biden. Ferguson’s designation as chairman may...more

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