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.
Author: David J. Woolf
Supreme Court Limits Application of the Computer Fraud and Abuse Act Against Employees Who Abuse Their Network Access Credentials
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
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).
The Pennsylvania Supreme Court Strikes Down a No-Hire Agreement as an Unreasonable Restraint on Trade
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.
Navigating the American Rescue Plan’s Employment-Related Provisions
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.
Continue reading “Navigating the American Rescue Plan’s Employment-Related Provisions”
D.C. Signs Broad Ban on Noncompetes and Anti-Moonlighting Policies
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.
Pennsylvania and Philadelphia Introduce New Restrictions in Response to Rising COVID-19 Infections
Pennsylvania
On November 17, 2020, Pennsylvania Health Secretary Dr. Rachel Levine issued two new orders in response to rising levels of COVID-19 in the Commonwealth. These orders (1) place certain restrictions on individuals traveling into Pennsylvania, and (2) provide increased and more detailed requirements related to the use of face coverings in the Commonwealth.
The travel order requires that all travelers entering Pennsylvania from other countries and states, whether a returning resident or a visitor, must have a negative COVID-19 test within 72 hours prior to entering the Commonwealth. If the traveler cannot obtain a negative COVID-19 test, he or she must quarantine for 14 days upon his or her arrival in Pennsylvania or until he or she obtains a negative COVID-19 test result, whichever is earlier. The travel order takes effect on November 20, 2020. Importantly, this order does not apply to individuals who are travelling to or from Pennsylvania for work or medical reasons.