Employee Mobility and Restrictive Covenants

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.

Four Trade Secret Developments to Follow in 2025

Significant developments are likely in 2025 in trade secret law, building on major cases and developments in 2024. We highlight four areas to watch: the extraterritorial reach of the Defend Trade Secrets Act, artificial intelligence, large damages awards and the impacts of a potential noncompete ban.

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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.

The FTC’s Noncompete Ban: An Update on Legal Challenges and What Comes Next

While the FTC’s noncompete ban is still scheduled to go into effect on September 4, 2024, there are three ongoing legal challenges to it; and there are pending motions in all three cases that could enjoin it either nationwide or on some limited basis before then. In the meantime, employers may wonder what to do. We outline several options.

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