In Lawson v. Spirit AeroSystems, Inc., the U.S. Court of Appeals for the Tenth Circuit upheld the forfeiture of certain stock awards for violating a covenant not to compete. Like the Seventh Circuit in LKQ Corp. v. Rutledge(which applied Delaware law), the Tenth Circuit concluded that, under Kansas law, the remedy of
Non-Competes and Protection of Corporate Assets
Virginia Strengthens Ban on Non-Competes for “Low-Wage Employees”
By Steven J. Pearlman & Scott Tan on
On March 24, 2025, Virginia Governor Glenn Younkin signed into law S.B. 1218, which amended Virginia’s non-compete law to expand the definition of “low-wage employees” with whom employers may not enter into non-competition agreements.
A “low-wage employee” previously was defined as any employee whose average weekly earnings fell below the Virginia average weekly wage. For…
Wyoming Bans Most Non-Compete Agreements
By Steven J. Pearlman & Sehreen Ladak on
- High-Level Employees: Non-compete agreements with “executive and management personnel” and “officers and employees who constitute professional staff to executive and management personnel”
FTC Appeals Texas Federal Court’s Decision Halting Its Noncompete Ban Nationally
By Lloyd B. Chinn, Steven J. Pearlman & Scott Tan on
On October 18, 2024, the Federal Trade Commission (“FTC”) gave notice that it would appeal a Texas federal court’s decision halting its non-compete rule (the “Rule”) from taking effect as to all employers nationwide. The appeal sets the stage for a decision by the conservative Fifth Circuit, which has become a key battleground for challenges…