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Home > Federal Law Articles > Restrictive Covenants

Articles Discussing Restrictive Covenants In The Workplace And Other Topics Relating To Unfair Competition.

States Continue to Limit Restrictive Covenants for Health Care Professionals

Posted: June 30, 2025 | Littler Category: Restrictive Covenants

States Continue to Limit Restrictive Covenants for Health Care Professionals

Following a trend in recent years, state legislatures continue to ban or curtail the use of non-compete provisions and other restrictive covenants in employment agreements with physicians and other healthcare providers. The first half of 2025 has seen a flurry

Employment Law: Trade Secrets

Posted: May 15, 2025 | Maynard Nexsen PC Category: Restrictive Covenants

Employee theft of trade secrets is not only on the rise but is now easier than ever before due to widespread access to rapidly evolving and affordable technology. Employees continue to use personal email accounts, thumb drives, phone cameras, personal cloud-based accounts (such as OneDrive, Google Drive, and iCloud), and external hard drives to mass-transfer, store, and retain their employer’s trade secret information post-separation. But are these types of technological advances the biggest threat to trade secret protection?

Tenth Circuit Affirms Summary Judgment Due to Plaintiff’s Failure to Sufficiently Establish Existence of Trade Secrets

Posted: May 11, 2025 | Littler Category: Restrictive Covenants

Tenth Circuit Affirms Summary Judgment Due to Plaintiff’s Failure to Sufficiently Establish Existence of Trade Secrets

The Tenth Circuit’s  recent decision in Double Eagle Alloys, Inc. v. Hooper, __F.4th __ (10th Cir. Apr. 22, 2025), provides a cautionary tale regarding the necessity of identifying trade secrets with particularity and offering

Work This Way: Labor & Employment Law Podcast | Episode 42: Non-Compete Agreements with Mitchell Greggs of Maynard Nexsen

Posted: April 20, 2025 | Maynard Nexsen PC Category: Restrictive Covenants

A No-Go for Employees’ Anti-Trust Claims Based on High-End No-Hire Agreements

Posted: March 27, 2025 | CDF Labor Law LLP Category: Restrictive Covenants

By: A No-Go for Employees’ Anti-Trust Claims Based on High-End No-Hire Agreements

Recently, the United States Court of Appeals for the Second Circuit upheld the dismissal of a class action against defendants Saks Inc., Gucci, Prada, Loro Piana, Brunello Cucinelli and other luxury good manufacturers.

The Plaintiffs claimed the luxury good manufacturer defendants violated Federal Anti-Trust laws by entering into no-hire agreements with Saks. In 2023, we noted that the State of California came to the defense of the employees joining an amicus curiae brief.  

The agreements at issue were entered into between the luxury good defendants and Saks as the luxury good defendants agreed not to hire employees who were employed by Saks within the previous six months, unless managers from both companies approved the hire. Plaintiffs claimed that such agreements restrained competition, suppressed wages, and limited employee mobility.

The Court of Appeals agreed that the trial court got it right under several levels of analysis, so it’s a no-go on the employees’ appeal.

The Court of Appeals concluded that these were not per se unlawful because the agreements were not horizontal restraints on trade, and primarily impacted the vertical relationships among the luxury good defendants and Saks.  

The Court then applied the Rule of Reason analysis to the Complaint and concluded that the plaintiffs failed to show an actual adverse effect on competition in the marketplace. It was not enough to show that a specific plaintiff was harmed, but they failed to demonstrate an adverse effect on competition market-wide. The Court reviewed the operative complaint and found that it alleged harm in a purely conclusory manner without specific allegations that there was national market-wide suppression of compensation or mobility among all businesses employing such workers.

The Court of Appeals did not mention amicus briefing from any of the State Attorneys General.

What Employers Should Do In Light of This Decision

Employers need to be cognizant that this case was adjudicated under the Federal Sherman Act, many states, like California have their own anti-trust laws that may be interpreted differently.

Employers seeking guidance on no-hire, no-poach or covenants not to compete involving California employees should seek counsel, including Dan M. Forman and CDF’s Trade Secret Practice Group.

Trump Administration Halts Appeals of Rulings Blocking FTC Noncompete Ban

Posted: March 12, 2025 | Ogletree Deakins Category: Restrictive Covenants

The federal government has filed motions to stay two ongoing appeals of rulings that blocked the Federal Trade Commission’s (FTC) rule banning noncompete agreements.

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

Posted: March 3, 2025 | Ogletree Deakins Category: Restrictive Covenants

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 markets and consumer protection, including targeting unreasonable noncompete agreements, no-poach, non-solicitation, and no-hire agreements,

The Year Ahead 2025: Non-Compete Conundrums

Posted: January 16, 2025 | Jackson Lewis Category: Restrictive Covenants

For 2025, and perhaps beyond, the writing appears to be on the wall for true non-competes. Prudent employers looking down the road should make sure they are doing what they can to strengthen their other restrictive covenants and protection of confidential information and trade secrets. 

Countering the Trend Against True Non-Competes

Posted: January 16, 2025 | Jackson Lewis Category: Restrictive Covenants

“All of this is to say that for 2025, and perhaps beyond, the writing appears to be on the wall as to true non-competes. They, whoever they are, are coming for employers who are aggressive in their choice of which employees are bound by true non-competes, the extent of the restrictions and the enforcement actions taken.”

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

Posted: January 12, 2025 | Littler Category: Restrictive Covenants

Federal agencies continued their efforts to restrict the use of restrictive covenant agreements in employment, but such efforts appear largely to have fallen short. Washington expanded and clarified its non-compete statute, while six other states passed laws restricting the use of non-compete agreements in the healthcare sector.

Federal Trade Commission’s Non-Compete Rule Update

Posted: December 8, 2024 | Maynard Nexsen PC Category: Restrictive Covenants

Labor and employment attorney Mitchell Greggs discusses the latest news regarding the FTC’s Non-Compete Rule and how employers can navigate the changing developments.

FTC Appeals Injunction Against Final Rule Banning Non-Compete Employment Agreements

Posted: October 24, 2024 | CDF Labor Law LLP Category: Restrictive Covenants

By: FTC Appeals Injunction Against Final Rule Banning Non-Compete Employment Agreements

Last Friday, the Federal Trade Commission (“FTC”) gave notice to appeal Judge Brown’s nationwide bar on the FTC’s final rule creating a Non-Compete Ban or enforcement of the rule in the case of Ryan LLC v. Federal Trade Commission. This appeal followed another appeal by the FTC of an adverse ruling from Properties of the Villages, Inc. v. Federal Trade Commission.

While it is still early days on the appeals, because the Ryan appeal is within the Fifth Circuit and the Villages appeal is within the Eleventh Circuit, conflicting opinions could result. And, if there are conflicts among the Circuit Courts, the United States Supreme Court will likely give the last word as to whether the FTC’s ban must be followed or not.

For the moment, employers are relieved from any Federal rules in this area but should continue to monitor and ensure compliance with state laws governing non-compete agreements in the employment arena.

If you need assistance with determining the enforceability of non-compete agreements, please reach out to Dan M. Forman or your favorite CDF attorney.

FTC Appeals Texas District Court Ruling That Blocked Noncompete Ban to Fifth Circuit

Posted: October 19, 2024 | Ogletree Deakins Category: Restrictive Covenants

The Federal Trade Commission (FTC) is appealing a Texas federal court ruling that struck down the FTC’s noncompete ban nationally, teeing the case up to be heard by the U.S. Court of Appeals for the Fifth Circuit.

Why Employers’ Non-Competes Could Still Be at Risk Despite FTC Rule Being ‘Set Aside’

Posted: October 14, 2024 | Jackson Lewis Category: Restrictive Covenants

Related links:

Workplace Law After ‘Loper’: Are Non-Competes Dead?

Posted: October 11, 2024 | Jackson Lewis Category: Restrictive Covenants

The recent SCOTUS Loper Bright decision, the FTC’s final rule banning non-competes, and ongoing litigation may present significant challenges for employers enforcing non-compete agreements.

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