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Following the Federal Trade Commission’s largely unsuccessful attempt to implement a nationwide ban on most post-employment noncompete agreements last year, states have stepped in to fill the legislative gap. The result has...more
Last year in April, the Federal Trade Commission (FTC) published a rule to ban most non-compete agreements nationwide. Within hours the rule was challenged in courts across the country, and after months of federal litigation...more
The FTC’s noncompete rule, which proposed to ban nearly all noncompetes, was enjoined by a Texas District Court in August 2024. While the FTC has launched a Joint Labor Task Force focused on “rooting out and prosecuting...more
After the nationwide injunction barring the Federal Trade Commission (FTC) Noncompete ban, we reported our anticipation that state legislatures would likely introduce legislation restricting the use of noncompetes....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
During a recent webinar, Denny Major discussed the latest updates employers need to know about non-compete agreements and overtime requirements. In this blog post, Denny will highlight key takeaways and considerations for...more
Welcome to our 2023 Trade Secret and Restrictive Covenant Year in Review. 2023 was a busy year in this space, but not as busy as many expected. Although multiple states introduced restrictive covenant legislation, the most...more
As businesses awaited word near the end of the year, New York Governor Kathy Hochul vetoed a bill on December 22, 2023, that would have categorically banned employee non-compete agreements in New York. Ban on Non-Compete...more
A common example of a non-compete restriction is a new CPA who signs such an agreement as part of his or her onboarding paperwork. Years later, the CPA considers moving to another firm, or opening their own firm, but that...more
As momentum for regulation of non-competes grows at the federal level, states continue to pass restrictive non-compete legislation on their own. As previously reported, on January 5, 2023 the Federal Trade Commission...more
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...more
Venture capitalists refer to “secret sauce” as the differentiator that gives one startup the edge over competitors. The secret sauce, properly protected, is a trade secret. However, employee turnover can threaten the secret...more
On February 1, 2023, a coalition of U.S. Senators and Members of the House of Representatives reintroduced a bill titled the Workforce Mobility Act (the “Act”), seeking to prohibit the use and enforcement of post-employment...more
The Pandemic Is Dead! Long Live the Pandemic! This week, the U.S. House of Representatives passed a resolution to immediately end the COVID-19 national emergency, as well as a bill to end the COVID-19 public health emergency....more
Only three months after the introduction of a bill to the House of Representatives that, if passed, will ban non-compete agreements nationwide for non-exempt employees, on January 5, 2023, the Federal Trade Commission (“FTC”)...more
On January 5, 2023, the Federal Trade Commission (“FTC”) published a notice of a proposed rulemaking that would prohibit employers from enforcing non-compete agreements against all employees and would preempt state laws that...more
We have written recently about state legislative proposals to significantly restrict employers’ use of non-compete agreements with employees and about court decisions that have limited the enforcement of non-competes. Many...more
As with the first quarter of 2022, Trade Secret and Restrictive Covenant activity continues to be robust at both the state and federal level. State legislators continue to introduce, analyze and negotiate restrictive covenant...more
2021 was an active year for trade secret and restrictive covenant law. 28 states introduced a total of 68 restrictive covenant bills, the United States Senate re-examined two prior restrictive covenant bills, and President...more
Continuing our annual tradition, we have compiled our top developments and headlines for 2019 & 2020 in trade secret, non-compete, and computer fraud law. Here’s what you need to know to keep abreast of the ever-changing law...more
Non-compete agreements have a long, conflicted history under the law. In the first known case on the topic—John Dyer’s Case from 1414!—an English judge found that a non-compete agreement was an unenforceable restraint on...more