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Under the Biden administration, the Federal Trade Commission (FTC) attempted to pursue a robust regulatory approach to restrict noncompete agreements. Those efforts were derailed in August 2024, however, when a federal court enjoined the FTC rule (which had tried to outlaw most noncompetes). Employers that thought noncompete agreements wouldn’t be an issue with the Trump […]
In 2024, the Federal Trade Commission (FTC) issued a rule banning most noncompete agreements nationwide. Although enforcement is currently stayed (paused) pending legal challenges, courts and legislatures continue to narrow or eliminate noncompete enforceability—prompting employers to reevaluate how they protect proprietary information and competitive advantage. In response, many employers are turning to trade secret law. […]
It has been ten years since a Jimmy John’s employee leaked a copy of a noncompete agreement that the company required employees (including store-level employees such as sandwich makers and delivery drivers) to sign. The noncompete restricted employees from performing any services for a business which derived more than 10% of its revenue from selling […]
The general rule on noncompete clauses in many states has been unchanged for some time. Unless there’s a public policy reason to declare them void, noncompetes are generally enforceable as long as they are reasonable in time and scope and narrowly tailored to protect the employer’s legitimate business interest without imposing an undue hardship on […]
Last year, the Federal Trade Commission (FTC) issued a proposed rule to ban most noncompete agreements nationwide, with very limited exceptions. The sweeping rule forbids any contractual term between an employer and a worker that prevents the worker from accepting employment with a competitor or operating a competitive business after the conclusion of the worker’s […]
Non-compete agreements, often used to protect business interests by restricting the ability of employees to enter into competition with their former employers, have been a staple in employment contracts for years. As detailed in our previous discussion on non-compete agreements published on March 4, 2024, these agreements are designed to safeguard trade secrets and investments […]
In a competitive business environment where human talent often represents an organization’s most important asset, noncompete agreements serve as important tools to help companies safeguard their proprietary information and maintain a competitive edge. But these legal contracts, designed to prevent employees from entering into direct competition with their former employers for a specified period after […]
The National Labor Relations Board (NLRB) has made a series of pro-employee moves over the past few months that have significant adverse implications for employers. To recap, the NRLB’s recent actions have included: A Closer Look at the Recent NRLB Actions In February 2023, the NLRB ruled that the National Labor Relations Act (NLRA) prohibits […]
Protecting against intellectual property theft and unauthorized disclosure of confidential business information has always been an important practice for businesses, yet the continuing evolution of the labor market post-COVID has increased the risk of intellectual property loss due to employee mobility and remote work. Employers have traditionally turned to noncompete, nonsolicitation, and confidentiality agreements to […]
Many companies accumulate trade secrets, such as pricing schemes, business plans, and production shortcuts, but they don’t want competitors to tap into this private reserve of knowledge. The easiest way for a competitor to obtain these secrets is by hiring one of your key employees. A recent case from the U.S. 5th Circuit Court of […]