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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
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
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
The Federal Trade Commission has appealed two federal trial court decisions – one in Texas and one in Florida – that prevented the agency from enforcing its near-total ban on non-compete agreements. The Texas appeal, filed on...more
A Texas federal court just struck down the FTC’s proposed ban on non-competition agreements on a nationwide basis mere weeks before it was set to take effect, meaning employers across the country can breathe a sigh of relief...more
The Federal Trade Commission on April 23 approved a Final Rule banning almost all worker noncompete clauses (noncompete rule). Absent a court entering a nationwide injunction or vacating the rule, it is set to go into effect...more
On May 7, 2024, the Federal Trade Commission (“FTC”) published its final rule (the “Rule”) broadly banning most noncompete provisions in employment-related agreements and preventing employers from enforcing them. The Rule...more
The FTC’s recently issued Final Rule banning non-competes for most workers prohibits an employer from (1) threatening to enforce a non-compete against a worker, (2) advising the worker that, due to a non-compete, they should...more
On April 24, 2024, the U.S. Federal Trade Commission (FTC) promulgated its final rule prohibiting non-competes for most workers in the United States (the “Final Rule”). The Final Rule raises several issues, including...more
In a novel and sweeping act of substantive rulemaking, the U.S. Federal Trade Commission (FTC) determined that non-compete agreements between employers and workers constitute an “unfair method of competition” prohibited under...more
Stemming a tide of Delaware decisions closely scrutinizing and refusing to enforce non-compete agreements, Delaware’s Supreme Court held that forfeiture-for-competition provisions arising out of a Delaware limited partnership...more
2023 was an active year in the world of unfair competition and trade secrets law, with employers’ use of restrictive covenant agreements coming under assault at the Federal Trade Commission and National Labor Relations Board,...more
Coming on the heels of the Federal Trade Commission’s proposed rule banning employee non-competes and one week before the National Labor Relations Board’s General Counsel published a memo taking the position that...more
The Federal Trade Commission (FTC) sent a shockwave through the corporate world on Jan. 5, 2023, when it released a proposed regulation banning non-compete clauses in all but extremely limited circumstances. The proposed...more
The non-compete—a clause that binds approximately one-fifth of all American workers—may soon be a thing of the past. New guidance from the Federal Trade Commission (FTC) threatens to abolish the use of non-compete clauses in...more
Dear Ruder, we are getting lots of long emails from various sources about this proposed noncompete ban. Can you please break this down in easy-to-read language so we don’t have to review the entire 216 pages of the FTC’s...more
The Federal Trade Commission’s (FTC’s) January 5, 2023, notice of proposed rulemaking would ban businesses from entering into and maintaining noncompete clauses with workers. In this LawFlash, we answer several frequently...more
As our colleagues have previously reported in this blog, on January 5, 2023, the Federal Trade Commission issued a notice of proposed rulemaking (NPRM) concerning its unprecedented effort to ban all non-compete clauses with...more
On January 5, 2023, the Federal Trade Commission announced a proposed rule eliminating most non-compete provisions in employment agreements. The move by the FTC comes one day after the agency announced enforcement...more
Last week, the FTC announced two significant moves. First, the FTC brought its first major standalone Section 5 actions, targeting certain companies’ employment noncompete agreements as unfair methods of competition. The very...more
The Federal Trade Commission (FTC) kicked off 2023 by using Section 5 of the FTC Act to take legal action against three companies and two individuals, forcing them to drop noncompete provisions. This is the first time that...more
For years, employers have relied on the use of restrictive covenants to protect their companies from unfair competition by former employees and competitors. Original published in Maryland State Bar Association Section of...more
If your company operates in a territory covered by the 4th circuit (Maryland, Virginia, West Virginia, North Carolina, and South Carolina) and requires employees to sign a noncompete agreement with language similar to the...more