On Jan. 5, 2023, the Federal Trade Commission (FTC) took a significant step towards banning noncompete agreements between companies and workers. The FTC proposed a broad rule that would effectively
Continue Reading Federal Trade Commission Seeks Industry Comment On Proposed Noncompete Ban
On the other side of the pandemic, after record numbers of employee resignations, protecting trade secrets is both challenging and being challenged. This article discusses protecting trade secrets and confidential
Continue Reading Staunch Competition – Trade Secrets and Restrictive Covenants
Employers – in light of recent action by the Biden administration, it is time to review and evaluate restrictive covenants being used with your workforce. Courts, state legislatures, and the
Continue Reading The Biden Administration Takes Aim at Noncompete Clauses
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
Many employers and attorneys assume that covenants not to compete found in employment agreements are not enforceable against California residents absent narrow exceptions, and that courts would reject any attempt
Continue Reading California Employee Can Agree to Non-Compete Clause When Represented by Counsel
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