FTC Issues Final Rule Banning Employment Noncompete Agreements

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.

Under New York Law, Trade Secret Damages Must Reflect Plaintiff’s Actual Loss, Not Just Defendant’s Wrongful Gain

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.

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.

Continue reading “The FTC Non-Compete Rule – It’s Finally Here (Almost)!”

State & Local Employment Law Developments: Q1 2024

State and local governments continue to increase workplace regulations. Although it is not feasible to discuss all laws, this update provides an overview of significant recent and upcoming legislative and regulatory developments to help you and your organization stay in compliance with local and state employment laws.

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

Federal Court Strikes Down NLRB’s New Joint Employer Rule, Leaving 2020 Rule in Place for Now

The 2023 rule, which was set to take effect on March 11, would have expanded the joint employer test to include reserved and indirect control — potentially exposing franchisors to claims that their franchise agreements and brand standards make them joint employers of their franchisee’s employees for purposes of collective bargaining and labor disputes. The federal district court concluded that the 2023 rule is unlawful because it would expand joint employment beyond the outer limits set by the common-law definition of employment. Other courts are likely to weigh in. The NLRB may appeal to the Fifth Circuit. A parallel suit brought by the Service Employees International Union regarding the scope of the 2023 rule is currently pending before the D.C. Circuit. Either or both of those cases may ultimately go to the U.S. Supreme Court. We conclude with two relevant handouts that identify franchisors’ best practices.

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

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