As we have previously written, on August 20, 2024, a Texas federal district court issued an order setting aside the Federal Trade Commission’s (FTC) sweeping proposed rule that would ban and render unenforceable most non-compete clauses in employment agreements. The FTC is now appealing that district court order. Specifically, on October 18, 2024, the FTC
Texas Federal Court Sets Aside the FTC’s Rule Banning Non-Competes, With the Court’s Order Having Nationwide Effect
Last week brought a major development in litigation surrounding the FTC’s sweeping rule that would ban and render unenforceable most non-compete clauses in employment contracts. Specifically, on August 20, 2024, the U.S. District Court for the Northern District of Texas in Ryan LLC, et al. v. FTC issued an order setting aside the FTC’s rule nationwide, meaning that the rule will no longer become effective on September 4, 2024 as scheduled. Continue Reading Texas Federal Court Sets Aside the FTC’s Rule Banning Non-Competes, With the Court’s Order Having Nationwide Effect
Federal Trade Commission’s Non-Compete Ban: A Battle of the Courts
In a significant and sweeping move, the Federal Trade Commission (FTC) adopted a rule in April 2024, the “Non-Compete Rule,” effectively banning the use of all non-compete clauses for many workers starting on September 4, 2024. The rule is embroiled in a battle between two U.S. District Courts. The Northern District Court of Texas granted a motion for preliminary injunction preventing the FTC from moving forward with the rule, but only for plaintiffs of that case while the Eastern District Court of Pennsylvania recently denied a plaintiff’s motion for preliminary injunctive relief. The recent rulings guarantee continued uncertainty regarding the future of non-compete clauses. It is important that employers understand what to expect in anticipation of the rule becoming effective and are aware of the rationale articulated in each court.Continue Reading Federal Trade Commission’s Non-Compete Ban: A Battle of the Courts
FTC Bans Non-Competes
On April 23, 2024, the U.S. Federal Trade Commission (the “FTC”) published a new rule banning most non-compete clauses in employment contracts. The new rule was issued by a narrow margin of 3:2, and comes as an effort by the FTC to promote competition, protect the freedom of workers to change jobs, and increase innovation. FTC Chair Lina M. Khan has explained that the rule will “ensure that Americans have the freedom to pursue a new job, start a new business, or bring a new idea to market.”Continue Reading FTC Bans Non-Competes
FTC Proposes Rule that Would Ban Almost All Non-Compete Agreements Across the United States
On January 5, 2023, the Federal Trade Commission (“FTC”) issued a Notice of Proposed Rulemaking (“NPRM”) to prohibit employers from entering into post-employment non-compete agreements with workers. The proposed rule, if adopted, would essentially ban non-compete agreements nationwide, with very limited exceptions. The FTC will soon publish the NPRM in the Federal Register, triggering a 60-day public comment period. Here are answers to some of the key questions employers may have about the proposed rule.
Continue Reading FTC Proposes Rule that Would Ban Almost All Non-Compete Agreements Across the United States
Non-Competes May Become a Thing of the Past Across the Nation
On July 9, 2021, President Biden signed an Executive Order which directed the Federal Trade Commission to curtail the use of non-competes nation-wide in order to help promote competition and expand the economy. At the moment, only three states forbid the use of non-compete clauses in employment agreements: California, North Dakota and Oklahoma. Nearly one dozen states – including Massachusetts – have put tough restrictions on the use and enforcement of non-compete agreements irrespective of which employees are required to sign same.
Continue Reading Non-Competes May Become a Thing of the Past Across the Nation
NH Joins Ban on Non-Competes for Low-Wage Employees
Following both Massachusetts and Maine, New Hampshire will prohibit non-compete agreements for employees who earn an hourly rate that is equal to or lesser than double the federal minimum wage. The federal minimum wage, which NH follows, is $7.25 per hour. This means that employers cannot require employees who make $14.50 per hour or less
Non-Compete ‘Reform’ Filed in Massachusetts Senate
The currently pending Senate proposal S.2625 – so-called non-compete “reform” legislation – was filed on Monday, July 23, 2018, in the Massachusetts Senate. It is not a stand-alone piece of legislation, but instead is buried deep within a $600 million appropriations bill which was issued from the Senate Ways and Means Committee. It would change
The State of Non-Compete Agreements in Massachusetts
Non-compete agreements continue to be a hot issue in Massachusetts.
I recently did a seminar on the state of non-competes and the items pending on Beacon Hill this legislative session.
To view a 15 minute clip from this presentation, click here.
Pending Bill Seeks to Outlaw Physician Non-Competition Agreements with Geographic Restrictions
SB 417, currently pending in the New Hampshire Senate, seeks to amend RSA 329 by adding a provision which would make it unlawful to prevent a physician from leaving one practice or hospital and setting up shop just a few miles away