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
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
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
On August 23, 2023, the Delaware Court of Chancery decided Frontline Technologies Parent LLC et al. v. Brian Murphy et al., a case which, in the Court’s view, “presents a textbook example of why parties should ensure their contracts say what they mean and mean what they say.” The lawsuit, filed by Frontline Technologies Group, … Continue Reading
The potential New York ban on non-compete agreements, approved by the both houses of the state Legislature back in June, has generated a significant volume of press, commentary, and speculation—but it hasn’t yet been signed into law. What’s the current status of the bill, and how would it impact existing non-compete agreements if and when … Continue Reading
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
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
We recently reported on New York Bill No. S03100, which, if enacted, would broadly prohibit non-competition agreements in New York. On the same day, June 7, 2023, the New York Senate also passed Bill No. S6748 (the “Bill”), which would similarly prohibit non-competes. The Bill aims to prevent monopolies, monopsonies, and restraints on trade and … Continue Reading
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
On May 24, 2023, Minnesota Governor Tim Walz signed into law the Omnibus Jobs Bill SF 3035 (the “Bill”). The Bill has significant implications for employers with employees in Minnesota and includes numerous changes to Minnesota state law, including a sweeping ban on non-compete agreements; a ban on mandatory employer-sponsored meetings; newly mandated statewide paid … Continue Reading
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
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
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
Almost 2 years after the Ban on Non-Compete Agreements Amendment Act (“the Act”) was passed, the Act – with significant amendments – will become effective and applicable to all employers with D.C. employees on October 1, 2022. The law generally prohibits employers from entering into or imposing non-compete agreements and policies on D.C. employees that … Continue Reading
Mayor Bowser signed the Amendment on July 27, 2022. The Amendment will go into effect on October 1, 2022 (absent action by Congress, which is not expected). On July 12, 2022, the District of Columbia Council voted to modify key aspects of the Ban on Non-Compete Agreements Amendment Act (“the Act”), passing the Non-Compete Clarification … Continue Reading
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
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
On March 24, 2022, Washington Governor Jay Inslee signed into law Engrossed Substitute House Bill 1795 also known as the “Silenced No More Act” (“the Act”). The Act prohibits agreements containing nondisclosure and nondisparagement provisions that prevent an employee or independent contractor from discussing certain violations of law. Washington becomes the second state (after California) … Continue Reading
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
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
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
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
As we previously reported, earlier this year the District of Columbia enacted the The Ban on Non-Compete Agreements Amendment Act (the “Act”), which creates the broadest non-compete ban in the country. The Act essentially bars post-employment non-competition agreements as well as prohibitions on simultaneous work for other employers. Although the Act became law in March, … Continue Reading
As we previously reported, D.C. Mayor Muriel Bowser signed the Ban on Non-Compete Agreements Amendment Act of 2020 (the “Act”) into law on January 11, 2021. The Act is one of the most restrictive (if not the most restrictive) non-compete laws in the country. Not only does the Act ban nearly all post-employment non-compete agreements … Continue Reading
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