On August 11, 2021, the City of Philadelphia announced that in order to curb the spread of the Delta variant of COVID-19, it would be reintroducing certain mask requirements throughout the city.
As part of “a whole-of-government effort to promote competition in the American economy,” President Biden’s July 9 Executive Order on Promoting Competition in the American Economy encourages the Federal Trade Commission to ban or limit non-compete agreements. In doing so, President Biden continues — and potentially accelerates — what to date has been a piecemeal effort conducted almost exclusively at the state level to limit, and in some cases prohibit, the use of non-competes, particularly for low-wage workers.
In a decision handed down yesterday, the Supreme Court held that civil liability under the Computer Fraud and Abuse Act (“CFAA”) does not attach for employees who abuse or misuse their access credentials in accessing their current or former employers’ computer networks. Rather, to be liable under the CFAA, the employees must access databases or other electronic materials that are outside of their access rights and otherwise off-limits to them.
The case, Van Buren v. United States, arose out of the actions of a former police sergeant. The former officer, Van Buren, used his valid login credentials to search his police department database for a particular license plate number in exchange for a bribe, but was caught by an FBI sting operation. Van Buren was charged with a felony violation of the CFAA—18 U.S.C. § 1030(a)(2). An individual is liable under this section (which can carry both civil and criminal penalties) if he “intentionally accesses a computer without authorization or exceeds authorized access.” The statute defines “exceeds authorized access” to mean “to access a computer with authorization and to use such access to obtain or alter information in the computer that the accesser is not entitled so to obtain or alter.” 18 U.S.C. § 1030(e)(6).
Recently, in Pittsburgh Logistics Systems, Inc. v. Beemac Trucking, LLC, No. 31 WAP 2019, — A.3d –, 2021 WL 1676399 (Apr. 29, 2021), the Pennsylvania Supreme Court found that a no-hire provision that was ancillary to a services contract between two businesses was an unreasonable restraint on trade and was therefore not enforceable. In ruling on this matter of first impression, the Court identified several important factors that employers should consider before entering into a no-hire provision that places restrictions on the movement of their employees.
On March 12, 2021, the American Rescue Plan Act of 2021 (ARP) was signed into law, providing an estimated $1.9 trillion stimulus package to address the ongoing COVID-19 pandemic. Some of the ARP’s key provisions include a number of employment-related sections that build upon prior legislation to create a scaffold of employer obligations and worker entitlements arising from the pandemic’s impact on the U.S. economy.
With the issuance of the D.C. Ban on Non-Compete Agreements Amendment Act of 2020 (the Act), the District joins the growing list of jurisdictions subjecting noncompetes to intense scrutiny. D.C.’s Act goes much further though, and once in effect will be one of the broadest limitations on such agreements in the country. While the Act’s precise effective date remains unclear, employers should begin reviewing their existing policies and form agreements now to ensure compliance with the sweeping prohibitions.
For the full alert, visit the Faegre Drinker website.