After the Federal Trade Commission (FTC) ceased its defense of the Biden-era rule that would have banned nearly all noncompete agreements in employment, the Commission has provided a glimpse into how it intends to carry out its stated interest in regulating alleged unfair labor-market practices through avenues other than rulemaking.
Articles Discussing Restrictive Covenants In The Workplace And Other Topics Relating To Unfair Competition.
FTC Finalizes Consent Order Requiring Employer to End Blanket Noncompete Agreements
In the first enforcement action by the Federal Trade Commission (FTC) since the Trump administration stopped defending an FTC rule that would have banned nearly all noncompete agreements in the employment context, the FTC recently reached an agreement containing a 10-year consent order with an employer, requiring the employer to
Key Takeaways: Record Surge in Trade Secret Litigation
Recent data confirms that trade secret litigation is at an all‑time high, reflecting a fundamental shift in how companies protect proprietary information. As panelists during the recent Lex Machina…
What are some common missteps that can weaken a company’s ability to protect trade secrets and business relationships, and what can be done to avoid them?
What are some common missteps that can weaken a company’s ability to protect trade secrets and business relationships, and what can be done to avoid them?
What are some common missteps that can weaken a company’s ability to protect trade secrets and business relationships, and what can be done to
FTC Abandons Nationwide Ban on Noncompetes, but Signals Ongoing Scrutiny
When the Federal Trade Commission (FTC) proposed its nationwide ban on most noncompete provisions in January of 2023, it sent shockwaves through the business community.
Ninth Circuit Holds Trade Secret Claims Under the DTSA Do Not Need to Be Fully Defined at the Start of Litigation
Ninth Circuit Holds Trade Secret Claims Under the DTSA Do Not Need to Be Fully Defined at the Start of Litigation
The U.S. Court of Appeals for the Ninth Circuit provided important guidance regarding pleading standards for claims under the Defend Trade Secrets Act (DTSA) in Quintara Biosciences, Inc. v.
No More Willy-Nilly: The FTC’s New Noncompete Message
No More Willy-Nilly: The FTC’s New Noncompete Message
The FTC has now withdrawn its appeal of the Ryan, LLC v. FTC decision.1 The FTC’s ill-fated attempt to completely ban noncompete agreements by administrative rule is history, but that does not mean the federal government’s attempt to regulate this normally state-law-oriented
FTC Shifts Strategy on Noncompetes: From Blanket Ban to Case-by-Case Enforcement
On September 4 and 5, 2025, the Federal Trade Commission (FTC) took a number of steps which shed light on the direction the Trump Administration intends to go with respect to the executive branch’s…
States Continue to Limit Restrictive Covenants for Health Care Professionals
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
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
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
A No-Go for Employees’ Anti-Trust Claims Based on High-End No-Hire Agreements
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
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
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
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.