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

The enforceability of restrictive covenants, particularly non-compete agreements, can be very difficult for employers to navigate, especially for companies in their “start-up” phase. Technology companies in particular face challenges in
Continue Reading A Non-Compete Law Roadmap for Tech Start-Ups in Key Jurisdictions

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

In California, it is well established that non-compete provisions are unenforceable, subject to certain statutory exceptions. But what about non-compete provisions that are ambiguous as to their protection of confidential information or trade secrets? Recently, when faced with such a provision, one California federal court narrowly construed the provision to find it enforceable.
Continue Reading Are Restrictive Covenants Enforceable in California? It Depends.