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As the legal landscape around restrictive covenants continues to evolve, staying ahead of changes in non-compete and non-solicitation laws is critical for employers, their HR professionals, and in-house counsel. Don’t miss...more
As we discussed in our previous blog on non-competes (as well as other types of restraint of trade), the move to add regulation has been gaining momentum since Federal Treasurer Jim Chalmers announced in August 2023 a...more
It seems like death by a thousand cuts. In August last year, Federal Treasurer Jim Chalmers announced a Competition Review to examine competition laws, policies and institutions to focus on reforms that would increase...more
Non-competition agreements are not doing so hot. Recently, more states have outlawed or tightened restrictions on them, and the federal government has stepped into the fray in policing them. For example, the Federal Trade...more
On April 16, the Federal Trade Commission (FTC) announced that it will hold a special Open Commission Meeting on Tuesday, April 23 at 2:00 p.m. ET, for purposes of voting on its proposed final rule banning noncompete...more
On April 16, 2024, the FTC announced the agency will hold a special Open Commission Meeting at 2 p.m. (Eastern) on April 23 to vote on its proposed rule to ban the use of non-compete provisions in the employment context...more
For years there has been much discussion in the Netherlands about the non-compete clause, which also includes the non-solicitation clause. These clauses were often included in employment contracts, restricting employees’...more
Seyfarth Synopsis: The New York State Assembly has joined the State Senate in passing legislation to prohibit non-compete clauses in employment contracts. The bill now heads to the Governor and, if signed into law, would void...more
On May 30, 2023, National Labor Relations Board (NLRB) General Counsel Jennifer Abruzzo issued a memorandum stating her position that non-compete agreements violate the National Labor Relations Act (NLRA) and encouraging the...more
In the wake of the Federal Trade Commission’s recent proposal to void noncompetition agreements between employers and employees, another federal agency has joined the push to restrict the use of restrictive covenants in...more
On January 5, 2023, the Federal Trade Commission (FTC) announced a proposed rule that, if enacted, would amount to a near-total ban on the use of non-compete agreements nationwide. If enacted as written, the FTC’s proposed...more
Exception to FTC Proposal Although the Federal Trade Commission (FTC) has proposed a ban on non-compete agreements, the proposal contains an exception in certain business acquisitions where the seller enters into a...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
For many employers, a new year is a new opportunity to update policies, procedures, and agreements—including restrictive covenants. In addition to ensuring compliance with applicable state requirements as to timing,...more
The Federal Trade Commission’s (“FTC”) threats of “cracking down” on non-competition agreements transformed into actual action with two dramatic moves this week. First, on January 4, the FTC ordered three companies,...more
On January 5, 2023, the FTC issued a Notice of Proposed Rulemaking (“proposed Rule”) that would ban most non-competition agreements in the United States and put to the wastebin the 50-state patchwork of laws that currently...more
On January 5, 2023, the Federal Trade Commission (FTC) announced a proposed regulation that, if adopted, would essentially abolish employee noncompetes across the United States. A proposed FTC regulation on employee...more
On January 5, 2023, the Federal Trade Commission (FTC) proposed a radical and unprecedented rule that would prohibit employers from entering noncompete clauses with their workers. This follows the initiation of a landmark FTC...more
The New Year has certainly started with a bang at the Federal Trade Commission (FTC). First, the agency announced enforcement actions against three employers prohibiting those companies from using non-competition agreements...more
On January 5, 2023, the Federal Trade Commission (FTC) proposed a New Rule to ban noncompete clauses, which “hurt workers and harm competition.” The FTC’s proposed new rule builds upon President Biden’s Executive Order on...more
The Washington, D.C. Ban on Non-Compete Agreements Act of 2020 (D.C. Act) is on hold once again, this time due to emergency legislation signed by Mayor Muriel Bowser earlier this week. The new legislation pushes the D.C....more