On August 20, 2024, a Texas federal judge permanently barred the implementation of a controversial Federal Trade Commission (FTC) regulation that would have invalidated tens of millions of existing non-compete agreements and precluded the adoption of new covenants. The decision comes as a tremendous relief to employers that feared the FTC’s regulation would have made … Continue Reading
As we previously reported, the U.S. Federal Trade Commission (FTC) issued a Final Rule which, on its anticipated effective date of September 4, 2024, will invalidate nearly all preexisting noncompetition agreements and bar employers from entering into such restrictions with workers in the future. Since then, the Final Rule has been subject to legal challenges … Continue Reading
In January 2023, the U.S. Federal Trade Commission (FTC) proposed a sweeping rule that, with limited exceptions (such as for highly compensated executives or in connection with the sale of a business), would prohibit employers from entering into post-employment non-competition arrangements with workers. (See our post here.) Under the proposed rule, an agreement between an … Continue Reading
In a long-anticipated move that dramatically alters the employment landscape, the Federal Trade Commission (“FTC”) issued its final Non-Compete Clause Rule (“final rule”) effectively banning employee non-compete agreements throughout the United States. After receiving over 26,000 public comments, the FTC determined that the use of non-compete agreements with workers constitutes an “unfair method of competition” … Continue Reading
Not surprisingly, California is once again passing employment laws that impact companies beyond the state. Specifically, the Golden State is continuing its war against noncompete clauses to conform to case law stating that such clauses are void for any employee working in California — even if the employment contract containing the noncompete was signed in … Continue Reading
On October 14, 2023, California’s active legislative year came to an end, leaving numerous employment law updates in its wake. This year, Governor Gavin Newsom has signed novel laws that create new rights for employees (and requirements for employers) while also amending some current laws, thereby changing existing employer obligations. Here, we summarize the laws … Continue Reading
Perhaps no area of employment law has changed more recently than the law surrounding employee non-competition agreements. Two federal agencies are actively working to regulate most non-competes out of existence. More states have joined the list of jurisdictions that prohibit or limit non-competes (including many non-solicitation agreements) by enacting broad bans. Other states, although not … Continue Reading
On January 4, the United States Federal Trade Commission (FTC) issued complaints against three employers alleging that they unlawfully imposed non-competition restrictions on employees, including low-wage workers, that barred the employees from seeking or accepting post-termination employment with a competing business. The complaints allege that the employers’ requirement that employees enter into these non-competition agreements … Continue Reading
State and local legislatures were active throughout 2022 in passing laws and ordinances that will impact employers of all sizes and all industries in 2023. Click HERE for our summary of these laws and related developments, including important developments in California, Colorado, Illinois, New York, and elsewhere! If you haven’t already, you might also want … Continue Reading
Squire Patton Boggs Summer Associate Jacob Williams details how new legislation in Colorado will impact employers’ use of non-competition covenants in the Centennial State. Adding to a growing nationwide trend placing restrictions on the use of non-competition agreements in employment contracts, Colorado is the most recent state to adopt exacting restrictions on employers’ use of … Continue Reading
In our post earlier this week, we covered recent developments in state and local labor and employment laws in the states at the beginning at the alphabet. We now turn our attention to developments in the remaining states.… Continue Reading
Now that we’re almost half-way through 2022, it’s time again to cover all of the development in state and local labor and employment laws. It’s been a busy time in the state legislatures and city councils, with lots of new laws and amendments to existing laws. In fact, due to the large number of updates, … Continue Reading
Welcome to the 2021 Year-End Edition of the State Law Round-Up! Due to the large number of updates, we will be splitting this State Law Round-Up into two parts, with each part organized alphabetically by state; today we will cover the first half of the alphabet, and tomorrow the remainder. Two exceptions: First – Minimum … Continue Reading
From our Capital Thinking blog, our public policy colleague Stacy Swanson shares the latest federal employment law developments in in the legislative and executive branches during the week of July 5, 2021. *** This is a weekly post spotlighting labor topics in focus by the US legislative and executive branches during the previous week. In this issue, … Continue Reading
