Employee Mobility and Restrictive Covenants

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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Are You Ready? Notice to Employees of Void CA Non-Competes Required by February 14, 2024

California law has for many years treated agreements that restrain one from engaging in a lawful profession, trade, or business as void and unenforceable, unless an exception applies. This applies to most non-compete and non-solicitation agreements with California employees.

Citing to California Supreme Court precedent that voided a post-employment non-compete and to state public policy favoring employee mobility, AB 1076 and SB 699, both effective January 1, 2024, prohibit employers from including, entering into, and attempting to enforce a noncompete clause in an employment contract, or otherwise requiring an employee to enter a noncompete agreement, absent an exception.

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UK Employment Law Update: Family Acts, UK Government Legislative Proposals and Recent Case Developments

In May, the UK government passed three family-related Acts that employers should be aware of: the Neonatal Care Act; the Protection from Redundancy Act; and the Carer’s Leave Act. UK courts have also made notable rulings on noncompete restrictions, and COVID-19-related health and safety detriment claims.

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What Employers Can Learn From the NLRB’s Recent Prosecution and Settlement of a Noncompete Case

A recent employer settlement with a National Labor Relations Board Region shows that the General Counsel is not just focused on noncompetition restrictions, but also nonsolicitation restrictions that the General Counsel believes are overbroad.

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New York Legislature Agrees to Ban Noncompete Agreements

New York state is poised to join four other states in banning employment-related noncompete agreements. In addition to standalone noncompetition agreements, noncompete restrictions on employees within offer letters, employment agreements, stock option agreements and other employment-related agreements, are subject to the new law’s prohibition.

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NLRB GC’s Latest Guidance Expands Restrictions to Noncompete Provisions

The General Counsel of the National Labor Relations Board (the Board) issued new guidance announcing her position that certain noncompete agreements violate the National Labor Relations Act. Citing McLaren Macomb, the General Counsel urged the Board to adopt her position regarding noncompete agreements, arguing that the Board already embraced a similarly restrictive standard for analyzing the lawfulness of severance agreements.

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