Law and the Workplace
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New York’s Non-Compete Bill – Gov. Hochul Weighs In

In what we believe are her first public statements on the New York Legislature’s proposal to ban ostensibly all non-compete agreements in New York, Governor Hochul on Thursday, November 30 reportedly told a group of reporters: “What I’m looking at right now is striking the right balance between protecting low and middle-income workers, giving them … Continue Reading

[Podcast]: In a World Without Non-Competes

In this episode of The Proskauer Brief we are joined by Daryl Leon, one of the leads of Proskauer’s Restrictive Covenants, Trade Secrets and Unfair Competition Group and Edna Guerrasio, senior counsel in the Labor & Employment Law Department. Along with partner Steve Pearlman, Daryl and Edna recently published an article in Legal Drive that … Continue Reading

NLRB Regional Director Targets Noncompetes in New Complaint

As recently foreshadowed, the National Labor Relations Board (“NLRB” or “Board”) now appears poised to weigh in on whether noncompete agreements, even those that may be legal under state law, violate the National Labor Relations Act (“Act”). Background: NLRB GC Targets Noncompetes On May 31, 2023, Board General Counsel Jennifer Abruzzo issued a memorandum stating … Continue Reading

Delaware Court Of Chancery Refuses To Enforce Both Choice of Law Provision And Nationwide Non-Compete

On August 31, 2023, the Delaware Court of Chancery held, with respect to a non-compete provision in an employment agreement, that: (1) the choice of law provision selecting Delaware was “not necessarily binding”; and (2) the non-compete was unenforceable. Centurion Service Group, LLC v. Wilensky, No. 2023-0422-MTZ. This is that court’s second decision in a … Continue Reading

FTC Orders 20-Year Non-Compete Ban for Anchor Glass

On June 2, 2023, the Federal Trade Commission (“FTC” or “the Commission”) finalized a Consent Order settling charges against Anchor Glass Container Corp. (“Anchor Glass”) for engaging in conduct which, according to the FTC’s administrative complaint, “constitutes an unfair method of competition with a tendency or likelihood to harm competition, consumers, and employees in the … Continue Reading

Implications of and Open Questions Regarding the N.Y. State Legislature’s Passage of Bill Banning Non-Competes

On June 21, 2023, the New York State Assembly passed a sweeping bill (Bill No. S03100/A1278B — An Act to Amend the Labor Law, in Relation to Prohibiting Non-Compete Agreements and Certain Restrictive Covenants) that, if it becomes law, would impose a near-total ban on new non-compete agreements within the state or otherwise governed by … Continue Reading

N.Y. State Senate Passes Ban on Non-Competes

UPDATE: On June 20, 2023, the New York State Assembly also voted in favor of this legislation, and the Bill is now headed to Governor Hochul. If signed by Governor Hochul, New York would become the fifth state to institute a broad ban of non-compete agreements (after California, North Dakota, Oklahoma, and Minnesota). The Bill … Continue Reading

Lessons Learned From 2022’s Trade Secret Verdicts

Before closing the book on 2022, we look back at the most significant verdicts issued in trade secret trials this past year.  In 2022, several juries awarded extraordinary verdicts to plaintiffs. These verdicts suggest a growing trend in damages theories and illustrate the importance of expert testimony in both the prosecution and defense of trade … Continue Reading

Legislation Seeking to Ban Non-Competes Reintroduced in Congress

On February 1, 2023, a coalition of U.S. Senators and Members of the House of Representatives reintroduced a bill titled the Workforce Mobility Act (the “Act”), seeking to prohibit the use and enforcement of post-employment non-competition agreements. The bill had been previously introduced in 2018, 2019, and 2021, but it was stalled each time and … Continue Reading

Delaware Chancery Court Invalidates Forfeiture-for-Competition Provision in Partnership Agreement

On January 4, 2023, in Ainslie, et al. v. Cantor Fitzgerald, L.P., the Delaware Court of Chancery invalidated the forfeiture-for-competition provision in the financial services company’s limited partnership agreement, based on the court’s determination that the agreement’s non-competition provision was unenforceable.  (CA. No. 9436-VCZ (Del. Ch. Jan. 4, 2023).  As a result, the court determined … Continue Reading

Federal Trade Commission Proposes Sweeping Ban on Non-Compete Clauses

On January 5, 2023, the Federal Trade Commission (“FTC”) proposed an expansive new rule which would impose a near-complete ban on the use of noncompetes (the “Proposed Rule”) by employers.  The Proposed Rule is the culmination of the FTC’s recent efforts, following President Biden’s July 9, 2021 Executive Order on promoting competition in the economy, … Continue Reading

FTC Enforcement Action Limits Noncompetition Agreements in “Sale of Business” Transactions

On July 9, 2021, President Biden issued an Executive Order, in which he described the nation’s antitrust laws as the “first line of defense against the monopolization of the American economy” and encouraged the Federal Trade Commission (“FTC”) to “curtail the unfair use of non-compete clauses and other clauses or agreements that may unfairly limit … Continue Reading

In Colorado, “Low Wage” Now Means Six-Figures For Non-Competes

On June 8, 2022, Colorado Governor Jared Polis signed Colorado House Bill 22-1317 (the “Bill”), which was passed by the Colorado Legislature on May 10, 2022. Effective 90 days from the end of the legislative session – on August 10, 2022 – Colorado will join the ranks of Illinois, Washington, and other states that have … Continue Reading

D.C.’s Non-Compete Law Poised To Be Delayed Until October 1, 2022

Update – Mayor Bowser signed the amendment on March 28, 2022, officially pushing back the Act’s applicable date to October 1, 2022. The District of Columbia’s ban on non-compete agreements is delayed again. As we previously reported, the DC Government enacted The Ban on Non-Compete Agreements Amendment Act (the “Act”) in January 2021, which creates … Continue Reading

FTC and DOJ Hold Workshop On Non-Compete Agreements

As we reported this past summer, President Biden signed an Executive Order titled “Promoting Competition in the American Economy.” At the time, President Biden urged the chair of the Federal Trade Commission (the “FTC”) to “curtail the unfair use of non-compete clauses and other clauses or agreements that may unfairly limit worker mobility.” Since the … Continue Reading

[Podcast]: Developments & Trends Across the Country in Non-Compete Law

In this episode of The Proskauer Brief we are joined by partner Guy Brenner, who heads up Proskauer’s D.C. Employment Law practice and co-chairs our Non‑Compete and Trade Secrets Practice group and Daryl Leon, an associate in Proskauer’s New York office and senior member of the Firm’s Non‑Compete and Trade Secrets Practice Group. Employers should listen … Continue Reading

[Podcast]: Ban on Non-Compete Agreements Amendments Act of 2020

In this episode of The Proskauer Brief we are joined by partner Guy Brenner, who heads up Proskauer’s D.C. Employment Law practice and co-chairs our Non‑Compete and Trade Secrets Practice group and Daryl Leon, an associate in Proskauer’s New York office and senior member of the Firm’s Non‑Compete and Trade Secrets Practice Group.  Tune in as we … Continue Reading

President Biden Signs Executive Order Targeting Noncompetition Agreements

Overview On July 9, 2021, President Biden signed an Executive Order on Promoting Competition in the American Economy (the “Order”), which, among other things, “encourage[s]” the “Chair of the [Federal Trade Commission (the “FTC”)] . . . to consider working with the rest of the Commission to exercise the FTC’s statutory rulemaking authority . . … Continue Reading

Louisiana Expands Scope of Non-Compete Law to Include Partners, Shareholders and LLC Members

Louisiana’s amended non-competition statute (La. R.S. 23:921), which meaningfully expands the application of employment-related non-compete restrictions within the state, went into effect on August 1, 2020.  This amendment expressly expands the reach of Louisiana non-compete law by, among other things, adding corporate shareholders, partners in partnerships, and members of limited liability companies, to the category … Continue Reading

Third Circuit Recognizes Trade Secret Misappropriation Claim by Party Possessing (But Not Owning) the Trade Secret

It is not often that a United States Court of Appeals issues a decision on trade secrets, much less one involving the review of a bench trial that drew legal conclusions on the scope of trade secret law and the propriety of compensatory and punitive damages.  On April 30, 2020, in Advanced Fluid Sys., Inc. … Continue Reading

Non-Competes in Washington – Over-Reaching Could Cost Employers

Washington is the most recent state to adopt a law restricting the use of noncompetition agreements. The new law (HB 1450), which was signed by Governor Jay Inslee on May 8, 2019 and is scheduled to go into effect on January 1, 2020, will add unique challenges for employers and further complicate the restrictive covenant … Continue Reading

NYAG Continues Scrutiny of Overbroad Non-Compete Agreements

The New York State Office of the Attorney General (“NYAG”), working with the Illinois Attorney General, announced on September 18, 2018 that it had reached a settlement with WeWork Companies, Inc. (“WeWork”) regarding its use of non-compete agreements. The WeWork settlement follows earlier non-compete related settlements by the NYAG with, among others, Jimmy John’s Gourmet … Continue Reading

New York State Issues Final Guidance on Sexual Harassment Policy and Training Requirements In Advance of October 9 Effective Date

As we have previously reported,  New York State has enacted several significant measures regarding sexual harassment in the workplace. Effective October 9, 2018, all New York State employers are required to adopt written sexual harassment prevention policies and institute annual anti-harassment training for employees (see below for more details on specific requirements and deadlines).  After … Continue Reading

Nevada Codifies Amendments For Non-Competes and Other Forms of Restrictive Covenants – Adopts “Blue Pencil” Standard, Imposes Consideration Requirements and Addresses Enforceability Issues

Nevada’s Assembly Bill 276, which became effective on June 3, 2017 (the “NV Law”), articulates new rules and requirements for employee restrictive covenants, some of which fundamentally alter the State’s prior practices. The NV Law addresses consideration generally in non-competition covenants and in circumstances where employees are terminated as the result of a reduction of … Continue Reading
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