Minnesota continues to expand its restrictions on noncompete agreements and similar restrictive covenants. Last year, the legislature banned noncompete agreements between an employer and an employee. Now, a new law that went into effect July 1, 2024, prohibits agreements between service-provider companies and their customers that would prevent customers from hiring employees of those service providers.
To view the full alert, visit the Faegre Drinker website.
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.
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.
On April 23, 2024, in a 3-2 vote along party lines, the U.S. Federal Trade Commission issued a final rule that will ban essentially all employment noncompete agreements nationwide. This alert dives into the key takeaways and what to expect next.
To view the full alert, visit the Faegre Drinker website.
A recent trade secret case from New York highlights the importance of how damages are calculated and emphasizes the need to conform those damages calculations to the applicable standards in your jurisdiction.
To view the full alert, visit the Faegre Drinker website.
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.
Continue reading “The FTC Non-Compete Rule – It’s Finally Here (Almost)!”