David J. Woolf, Author at Laborsphere

Florida’s CHOICE Act Takes Permitted Employer Protections to a New Level

Although Florida law has been considered noncompete friendly for some time, the CHOICE Act — which took effect July 3 — takes permitted employer protections to a new level, making lengthy garden leave and noncompete provisions per se permissible for individuals who earn more than a relatively modest threshold and have access to and work with confidential information. Florida employers thus should consider whether to take advantage of the new law with current or future employees and independent contractors to enhance protection of their confidential information and customer relationships.

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

Supreme Court Decision in Trump v. CASA Does Not Affect Ryan Court’s Universal Injunction of the FTC Noncompete Rule

The Supreme Court has issued its decision in Trump v. CASA, ruling that district courts generally lack the authority to issue nationwide, universal injunctions.

For employers, a key question arises: What impact does the CASA decision have on the FTC’s final rule banning the use of most noncompete agreements, which was set aside in August 2024 by the Northern District of Texas in the Ryan decision?

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

Health Care Practitioner Noncompete Ban Signed Into Pennsylvania Law

On July 17, 2024, Gov. Josh Shapiro signed the Fair Contracting for Health Care Practitioners Act into Pennsylvania law. The Act prohibits the enforcement of certain noncompete covenants entered into after January 1, 2025, by health care practitioners and their employers, subject to limited, but important, exceptions. Therefore, Pennsylvania health care employers should review their employment agreements and revise them to ensure compliance.

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

Court Blocks FTC Rule Banning Employment Noncompete Agreements on a Limited Basis

The FTC’s Rule banning noncompete agreements against the plaintiffs in Ryan LLC v. Federal Trade Commission has been enjoined. The court’s order signals a tough road ahead for the FTC’s Rule on a nationwide scale, although a second order is due by the end of July in a separate case. Nevertheless, employers should be aware of increasing judicial scrutiny and legislative limitations of restrictive covenants.

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

NLRB: Noncompete and Employee Nonsolicitation Agreements Violate Covered Employees’ Section 7 Rights Under NLRA

J.O. Mory, Inc. represents a continuation of the Board’s attack on noncompetition agreements and a notable expansion to now target nonsolicitation covenants. Employers should take particular care to review the language of nonsolicitation agreements with covered employees to ensure that they are not likely to be construed to chill employees’ — and former employees’ — engagement in protected activity.

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

The FTC Non-Compete Rule – It’s Finally Here (Almost)!

Yesterday, the Federal Trade Commission (FTC) announced that, next Tuesday, April 23, it will be releasing the final version of its proposed rule largely prohibiting employee non-competition restrictions. See FTC Announces Special Open Commission Meeting on Rule to Ban Noncompetes | Federal Trade Commission. The announcement will be preceded by a vote by the five FTC commissioners on whether to “authorize public disclosure of the proposed final rule.” Assuming that disclosure is authorized, which is expected, the FTC will present the rule and then vote to issue it. As of yet, there has been no indication whether the final rule will be the same as the proposed rule or, if not, what the changes will be.

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