On July 23, 2024, the Eastern District of Pennsylvania in ATS Tree Services, LLC v. Federal Trade Commission denied the plaintiff’s motion to enjoin and stay the FTC’s final rule

Continue Reading Pennsylvania Federal Court Declines to Enjoin FTC’s Noncompete Ban

In New York state, both houses of the Legislature have passed S.3100A/A.1278-B, which would add a new section 191-d to the Labor Law prohibiting “non-compete agreements and certain restrictive covenants.”

Continue Reading NY Legislature Passes Legislation Banning Employer Use of Noncompete Agreements; NYC, FTC Actions Pending; NLRB General Counsel Memorandum

As companies grow and expand into multiple U.S. states, particularly in our increasingly knowledge and relationship-based economy, determining the applicable law for companywide restrictive covenants can be puzzling. Determining which
Continue Reading Fifth Circuit Clarifies and Complicates Choice of Law Analysis of Interstate Restrictive Covenants

Drafting an effective employment agreement or release has become a challenging endeavor for a new reason. In Golden v. California Emergency Physicians Medical Group, the U.S. Court of Appeals for the Ninth Circuit added another source of concern to those employers who deploy “no re-hire” provisions in releases. Following Golden, a fact-intensive inquiry may be required into the particular provision to determine if it constitutes “a restraint of a substantial character,” — here, whether or not there was a restraint of a substantial character of Dr. Golden’s medical practice. And, given the Ninth Circuit’s reading of California law, Golden may also have implications well beyond the employment context, possibly extending to certain commercial contracts as well, to the extent they can be said to restrain anyone from engaging in a lawful profession, trade or business.
Continue Reading Ninth Circuit Broadens California Rule Against Non-Competes