Charles Knapp, Erik Mosvick, Author at Laborsphere

Top 10 Noncompete Developments of 2024

Without a doubt, 2024 was a roller coaster of a year for employers in the area of noncompete law, from an FTC attempted nationwide ban on most noncompete agreements, to continued state law action seeking to narrow the use of noncompete provisions, to a growing number of court decisions revealing deep frustration by judges asked to enforce overbroad post-employment restrictions. Employers looking to protect confidential information and customer goodwill through the use of noncompetition or nonsolicitation provisions should stay abreast of state law developments and review existing agreements to ensure they are narrowly tailored to address judicially recognized protectable interests.

To view the full alert, visit the Faegre Drinker website.

Texas Court Sets Aside FTC Noncompete Rule, With Nationwide Effect

On August 20, 2024, the U.S. District Court for the Northern District of Texas issued a memorandum opinion and order holding that the Federal Trade Commission rule banning post-employment noncompetes is “unlawful” and therefore must be “set aside.” This alert covers what employers need to know.

For the full alert, visit the Faegre Drinker website.

Another Federal Court Finds FTC Noncompete Rule Unenforceable

On August 15, another federal court weighed in on the question of whether the FTC exceeded its authority in issuing its rule banning post-employment noncompetes, scheduled to go into effect on September 4, 2024. In Properties of the Villages, Inc. v. Federal Trade Commission, Judge Timothy Corrigan (appointed by Pres. George W. Bush) of the Middle District of Florida enjoined the FTC from implementing or enforcing its noncompete ban against the plaintiff. Judge Corrigan declined to issue a more general, nationwide injunction.

For the full alert, visit the Faegre Drinker website.

Federal Court Decision Creates Greater Uncertainty as to Future of FTC Final Rule on Noncompete Clauses

In what some view to be a surprise development, the Eastern District of Pennsylvania issued a decision in ATS Tree Services v. FTC on July 23 affirming enforceability of the FTC’s Noncompete Rule, which designates most noncompete clauses as unenforceable after September 4, 2024. All eyes now turn to the Northern District of Texas, where the Ryan v. FTC court has promised a final decision on or before August 30. Most expect that the Ryan court’s final decision will continue to hold that the FTC did not have authority to issue the Final Rule, creating a split of authority.

To view the full alert, visit the Faegre Drinker website.

Top 10 Noncompete Developments of 2023

2023 proved to be a very busy year for those monitoring developments in the area of noncompetition law. We highlight 10 major state and federal developments from 2023 in the area of employee noncompetition law, including increased state and federal efforts to outright ban their use.

To view the full alert, visit the Faegre Drinker website.

Minnesota’s 2023 Legislative Session Brings Major Changes to Minnesota Employment Law

Gov. Tim Walz has signed or is expected to sign the Minnesota legislature’s Jobs and Economic Development and Labor Omnibus Budget Bill, bringing broad change to the Minnesota employment law landscape. Notably, the new law bans post-employment noncompete agreements in Minnesota, creates state-wide paid sick and safe time leave, prohibits restrictive franchise agreements, modifies wage disclosure protection law, provides additional protections for pregnant and nursing workers, prevents mandatory employer-sponsored meetings, and creates additional paystub requirements for construction workers, among other things. Gov. Walz signed the paid family and medical leave law, creating a new paid family and medical leave program funded by employer and employee payroll taxes and providing up to 12 weeks of paid leave in a single benefit year for an employee’s own serious health condition and up to 12 weeks of paid leave in a single benefit year for bonding, safety leave or family care, with a cap of no more than 20 weeks of total combined leave in any single benefit year. The Minnesota legislature also ended its 2023 session after passing a recreational cannabis law, amending the state’s drug and alcohol testing laws following the legalization of recreational marijuana, which is anticipated to be signed into law by Gov. Walz this week.

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