On April 23, 2024, the Federal Trade Commission (FTC) adopted a final rule that effectively prohibits the use of almost all non-compete clauses.
Articles Discussing Restrictive Covenants In The Workplace And Other Topics Relating To Unfair Competition.
FTC Issues Final Rule Effectively Banning Workplace Non-Compete Agreements
The effective date of the final rule is 120 days after publication in the Federal Register. After the effective date, non-compete agreements with all workers are banned nationwide. For non-compete agreements existing prior to the effective date, those with “senior executives” may remain in force, while those with all other
FTC Announces Open Commission Meeting to Vote to Issue Final Rule Banning Noncompetes
On April 16, 2024, more than fifteen months after issuing a notice of proposed rulemaking that would ban noncompetes and nearly a year after the comment period closed, the Federal Trade Commission (FTC) announced it was poised to take action on the proposed ban.
FDIC Seeks to Restrict Noncompete Agreements in Bank Mergers
Quick Hits On March 21, 2024, the FDIC unveiled proposed revisions to its Statement of Policy (SOP) on Bank Merger Transactions, which was last amended in 2008. The revisions would increase scrutiny of bank mergers, particularly mergers involving large banks with $100 billion or more in assets. A small, but
What should we be doing to protect our trade secret information, particularly now that so many of our employees are working remotely?
Reminder to Treat Your Valentine and Provide Notice to Employees of Non-Competes by February 14, 2024
In October 2023, California’s Governor signed Assembly Bill (AB) 1076 which added the new Business & Professions Code §16600.1, making it unlawful to impose non-compete clauses on employees – which contractual restrictions already are void under Business & Professions Code §16600.
Under AB 1076, employers must notify current employees and
The Year Ahead 2024:Restrictive Covenants
Welcome to We get work™ and The Year Ahead 2024 podcast series.
Practical Considerations Regarding the Use of Non-Disparagement Provisions in Light of Increased Scrutiny
Global Non-Compete Reform – At a Glance Tracker
The United States is not the only country currently debating a reform to the law on non-competes. Notably, the UK Government has announced legislation that would limit the duration of non-competes to a period of 3 months after termination of employment.
Compliance Alert: Considering the Federal Government’s Recent Shift to Ban Non-Competes
SEC Continues to Attack Non-Disclosure Agreements and Personnel Policy Provisions that Could Impede Employees from Reporting Potential Violations of U.S. Securities Law
A recent SEC cease-and-desist Order indicates how publicly traded and other SEC-regulated employers should be on alert to the agency’s ongoing attention to enforcement actions under Rule 21F-17. The SEC has been examining whether non-disclosure agreements and other confidential business information provisions could impede
NLRB Continues to Flex Its Muscles with Latest General Counsel Memorandum on Non-Competes
In a not-so surprising move, the National Labor Relations Board’s General Counsel Jennifer Abruzzo issued a memo indicating she believes most non-competes violate the National Labor Relations Act and, in particular, Section 7 rights of employees.
Important Updates on Non-Compete Employment Agreements
Employers following the Federal Trade Commission’s (“FTC”) rulemaking process that will restrict non-compete agreements in many employment relationships may be relieved to learn that the FTC is not expected to vote on its proposed rule to ban such agreements until April 2024, according to Bloomberg Law, following receipt of over 27,000 comments from the public.
However, employers should consider taking immediate action to reexamine their use of any non-compete agreements with employees and former employees following the May 30, 2023, National Labor Relations Board (NLRB) announcement that non-compete agreements violate the National Labor Relations Act (NLRA).
NLRB Issues Memo on Non-competes Violating NLRA
On May 30, 2023, Jennifer Abruzzo, the general counsel for the National Labor Relations Board (NLRB), issued a memorandum declaring that non-compete agreements for non-supervisory employees violates the National Labor Relations Act.
NLRB General Counsel Abruzzo Targets Employee Non-Competes under NLRA
On May 30, 2023, General Counsel (GC) Jennifer A. Abruzzo released Memorandum 23-08, Non-Compete Agreements that Violate the National Labor Relations Act. In the memorandum, Abruzzo urges the National Labor Relations Board to make new law declaring the proffer, maintenance, and enforcement of employee non-compete agreements by employers unlawful