A Federal Court has blocked the Federal Trade Commission’s Final Rule (the “Rule”) that was set to broadly ban nearly all forms of non-compete agreements. On August 20, 2024, Judge Ada Brown of the Northern District of Texas permanently enjoined the Rule, ordering that it “shall not be enforced or otherwise take effect” on its … Continue Reading
The wait is over, but the fight is just beginning. Will U.S. employers need to break up with non-compete agreements forever? The Federal Trade Commission (FTC) voted “yes” earlier this week in pushing through a Final Rule that broadly bans nearly all forms of non-compete agreements. But while the move represents the culmination of the … Continue Reading
New California laws intended to strengthen the state’s long-standing ban on non-competition agreements are set to create immediate headaches for employers in the state that have, or plan to, impose non-compete or non-solicit clauses on their employees in the Golden State. The new amendments — S.B. 699 and A.B. 1076 — not only codify existing … Continue Reading
Only days into the new year, the Federal Trade Commission announced a controversial proposed rule that would potentially ban all non-compete agreements nationwide. While the proposed rule would not take effect until the end of a 60-day public comment period, at the earliest, it has left employers wondering how they can protect their businesses should … Continue Reading
Employers may find it increasingly difficult to protect customer relationships built on their dime as more states enact enhanced restrictions on non-compete agreements, or even bar them altogether. While employers may want to protect their investment by having employees sign agreements that restrict them from working for competitors or servicing the same customers once the … Continue Reading
Illinois employers will be far more restricted in their ability to bind employees to non-competition and non-solicitation agreements as result of an amendment to the Illinois law governing such agreements. The law amends the Illinois Freedom to Work Act effective January 1, 2022, and imposes some initial hurdles and eligibility conditions on agreements executed after … Continue Reading
Florida has given employers a new weapon in their trade secret protection arsenal: the Combatting Corporate Espionage in Florida Act. With the Biden Administration’s goal of curtailing non-competes and the Supreme Court’s narrow reading of a federal computer hacking law, employers are looking for additional ways to protect their sensitive business information. While seemingly targeted … Continue Reading
Don’t be misled: President Biden’s July 9 Executive Order does not bar non-compete agreements. Rather, it “encourages” the Chair of the Federal Trade Commission to use rule-making to limit their use. In fact, the only text in the Order addressing non-competes reads, in its entirety: “To address agreements that may unduly limit workers’ ability to … Continue Reading
The scenario is familiar, and frustrating, to employers: an employee, preparing to leave to join a competitor, accesses sensitive product, customer, and sales data using his or her own credentials, copies it to a flash drive, and takes it to a competing firm. Employers have had a variety of legal tools available to take action … Continue Reading
The networks have called the Presidential election for Joe Biden. Assuming those results are certified and President Trump’s legal challenges fail, what should employers expect under the new administration? In Part I of this two-part series, let’s explore what changes we might see in the workplace from the employment law perspective. In Part II, we … Continue Reading
As employers gear up for 2019, they should be mindful significant reforms in the area of non-compete law that took place in 2018. Although non-competes are widely used and enforceable in the majority of states, there is a growing trend toward limiting the use of non-competes in favor of employee mobility. In recent years, several … Continue Reading
Big news for home health agencies and others whose business comes from referral sources: the Florida Supreme Court just held that referral sources are the kind of protectable business interest that will support a non-compete agreement. Home health agencies, like other health care businesses, routinely use non-compete agreements to prevent marketing employees from leaving and … Continue Reading
Employers who require all employees to sign a form non-competition agreement regardless of the state in which the employee is located or the type of work performed by the employee should think twice before doing so. Recent legislation focused on reform of non-competition agreements at the state level may signal a trend. In light of those … Continue Reading
Heads up, Illinois employers with post-employment restrictive covenants: three new cases may impact your enforcement efforts. One continues the split between state and federal courts as to whether continued employment is sufficient consideration, another demonstrates the strict scrutiny courts can place on employers’ stated legitimate business interests, and a third makes clear that attorneys’ fees need … Continue Reading
Yesterday, President Obama signed the federal Defend Trade Secrets Act of 2016 into law, the details of which we reported in a recent Akerman Practice Update. The Act allows companies for the first time to bring trade secret theft claims under federal law.… Continue Reading
All employers doing business in Illinois must be aware of a special rule regarding the enforceability of covenants not to compete, which may apply, depending on where their business is located. In Fifield v. Premier Dealer Servs., 2013 IL App (1st) 120327, the Illinois First District, which covers Cook County (including Chicago), held that an … Continue Reading
Now more than ever, employers must take active steps to protect their confidential information and trade secrets from the prying eyes of competitors. In our digital age, trade secrets can be misappropriated in an instant, and without the proper agreements in place, any business can be vulnerable. Recent major court cases involving companies such as … Continue Reading
Illinois non-compete law continues to wend a circuitous path through the employment landscape, making it occasionally difficult for employers and employees alike to predict outcomes in these cases. One issue that has arisen with some frequency concerns the matter of consideration for a restrictive covenant with an employee where the only consideration provided is employment: namely, … Continue Reading