Law and the Workplace

Category Archives: Non-Competes and Protection of Corporate Assets

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D.C.’s New Non-Compete Law May Be Deferred Until 2022

By Guy Brenner and Dominique Kilmartin on Posted in Non-Competes and Protection of Corporate Assets
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

President Biden Signs Executive Order Targeting Noncompetition Agreements

By John Barry, Daryl Leon and Abigail Rosenblum on Posted in Biden Administration Coverage, Non-Competes and Protection of Corporate Assets
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

Amendments to D.C.’s New Law Banning Non-Competes Proposed

By Guy Brenner on Posted in Non-Competes and Protection of Corporate Assets
Quick Hit.  On May 21, 2021, Councilmember Elissa Silverman proposed the Non-Compete Conflict of Interest Clarification Amendment Act of 2021 (the “Bill”), which would amend D.C.’s Ban on Non-Compete Agreements Amendment Act of 2020 (“Act”) which bans (with limited exceptions) all agreements and policies that restrict simultaneous and post-employment activities.  Unfortunately, the Bill does not … Continue Reading

DC Mayor Signs Act Creating Near Total Ban on Non-Compete Agreements for DC Employees

By Caroline Guensberg and Guy Brenner on Posted in Non-Competes and Protection of Corporate Assets
On January 11, 2020, Muriel Bowser signed the Ban on Non-Compete Agreements Amendment Act of 2020 (the “Act”) into law, moving the District one step closer to implementing one of the broadest, if not the broadest bans on non-competition agreements in the country.  As we previously reported, in December 2020, the DC Council passed the … Continue Reading

DC Council Passes One of the Broadest Bans on Non-Competes in the Country

By Caroline Guensberg and Guy Brenner on Posted in Non-Competes and Protection of Corporate Assets, Workplace Policies and Procedures
Quick Hit:  On December 17, 2020, the Council of the District of Columbia passed the Ban on Non-Compete Agreements Amendment Act of 2020 (the “Act”), which, subject to certain very narrow exceptions, will “make void and unenforceable non-compete[s]” entered into after the effective date of the law.  The Act also prohibits employers from maintaining workplace … Continue Reading

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

By Daryl Leon, Eric Novak, John Barry and Nicole Eichberger on Posted in Non-Competes and Protection of Corporate Assets
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

FTC Considers Regulating Non-Competes At Workshop

By Guy Brenner and Owen Masters on Posted in Non-Competes and Protection of Corporate Assets
Although non-competes are generally viewed as matters governed by state law, the issue is increasingly under the scrutiny of federal lawmakers and regulators.  The FTC has been studying non-compete clauses and their impact on competition for months, and on January 9, 2020, the Commission held a workshop on the topic.  Experts, law professors, labor leaders, … Continue Reading

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

By Daryl Leon and John Barry on Posted in Non-Competes and Protection of Corporate Assets
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

By Daryl Leon and John Barry on Posted in Non-Competes and Protection of Corporate Assets
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

[Podcast]: New Non-Compete Law in Massachusetts

By Harris Mufson and Samantha Regenbogen Manelin on Posted in Non-Competes and Protection of Corporate Assets
In this episode of The Proskauer Brief, senior counsel Harris Mufson and associate Samantha Regenbogen discuss significant reforms to Massachusetts law that will apply to non-competition agreements as well as adopting the Uniform Trade Secrets Act (UTSA). The law will cover non-compete agreements entered into with Massachusetts residents and Massachusetts employees on or after October 1, 2018 (but not … Continue Reading

Massachusetts Passes Non-Compete Reform Law

By Laura Franks, Mark W. Batten and Samantha Regenbogen Manelin on Posted in Non-Competes and Protection of Corporate Assets
On August 10, 2018, Massachusetts Governor Charlie Baker signed into law a bill making significant reforms to Massachusetts’ law regarding non-compete agreements, as well as adopting the Uniform Trade Secrets Act (“UTSA”) (joining 48 other states as well as DC in adopting the UTSA at least in part, and leaving New York as the lone … Continue Reading

DOJ Announces First Settlement Under Trump Administration Regarding “No-Poach” Agreement

By Colin Kass, Lloyd B. Chinn, Laura Fant and Myra Din on Posted in Hiring/Background Checks, Non-Competes and Protection of Corporate Assets
On April 3, 2018, the Antitrust Division of the U.S Department of Justice (“DOJ”) announced that it had reached a settlement in a matter involving a “no-poaching” agreement between employers—the first such enforcement action under the Trump Administration.  The DOJ’s pursuit of the matter reflects the Department’s continuing scrutiny of employment and hiring agreements between … Continue Reading

Court finds Ex-Employee Likely Violated Non-Solicitation Provision with LinkedIn Post

By John Barry on Posted in Non-Competes and Protection of Corporate Assets
The use of social media sites, like LinkedIn, can be a helpful tool to reach a customer base. But a recent district court case out of Minnesota exemplifies the need to ensure that LinkedIn usage complies with the user’s employment agreement. Specifically, in late July 2017, a Minnesota court in Mobile Mini, Inc. v. Vevea granted … 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

By Daryl Leon and John Barry on Posted in Non-Competes and Protection of Corporate Assets
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

Click Here — 3rd Circuit Enforces Restrictive Covenants Tied to Electronic Acceptance of Stock Award

By Christopher Bouriat and John Barry on Posted in Non-Competes and Protection of Corporate Assets
On February 7, 2017, the Third Circuit affirmed a partial preliminary injunction order barring two former ADP employees from soliciting customers for their new employer for one year. This decision is notable as it affirmed the propriety of electronic acknowledgements and rejected a creative challenge to ADP’s electronic signature system. See ADP, LLC v. Lynch, … Continue Reading

Illinois Prohibits Non-Compete Agreements with Low-Wage Employees

By John Barry, Sunghee Sohn and Steven J. Pearlman on Posted in Non-Competes and Protection of Corporate Assets
Effective January 1, 2017, the Illinois Freedom to Work Act (the “Act”) will prohibit private sector employers from entering into non-competition agreements with employees earning a “low wage.”  The Act defines low-wage employees as those who earn the greater of: (a) the federal ($7.25 per hour), state ($8.25 per hour), or local (currently, $10.50 per … Continue Reading

Proskauer Releases Survey Results on Value Insights: Delivering Value in Labor and Employment Law

By Katharine Parker on Posted in Accessibility & Accommodation, Class/Collective Action, Discrimination, Harassment and Retaliation, Hiring/Background Checks, Immigration, Independent Contractor, Leaves of Absences, Litigation and Arbitration, National Labor Relations Board, Non-Competes and Protection of Corporate Assets, Performance Management, Discipline & Termination, Strategic Corporate Planning, Vacation policy, Wage and Hour, Whistleblower, Workplace Policies and Procedures, Workplace Restructuring and WARN
Proskauer’s Labor and Employment Law Department is pleased to announce the release of its inaugural Value Insights: Delivering Value in Labor and Employment Law survey, a resource that includes input from in-house decision makers on labor and employment matters and provides in-house counsel with tools to both more effectively help their business partners achieve their objectives … Continue Reading

President Signs Defend Trade Secrets Act Into Law

By Alex Weinstein and John Barry on Posted in Litigation and Arbitration, Non-Competes and Protection of Corporate Assets, Whistleblower, Workplace Policies and Procedures
Today (May 11, 2016), President Obama signed the Defend Trade Secrets Act (“DTSA”) into law, for the first time creating a federal cause of action for trade secret misappropriation.  The law has sweeping implications and is expected to have a noticeable impact on trade secret jurisprudence.  In addition, the law adds new obligations for employers … Continue Reading

Congress Passes A New Law Providing A Federal Cause Of Action For The Misappropriation of Trade Secrets

By Alex Weinstein and John Barry on Posted in Litigation and Arbitration, Non-Competes and Protection of Corporate Assets, Whistleblower, Workplace Policies and Procedures
On April 11 and April 27, 2016, the Senate and House, respectively, passed the Defend Trade Secrets Act of 2016 (DTSA).  The DTSA, for the first time, provides a federal cause of action for the misappropriation of trade secrets.  This significant development has large implications for companies and employers nationwide.  As such, Proskauer has prepared … Continue Reading

Illinois Restrictive Covenants Harder to Enforce Post-Fifield and Montel

By Gray Mateo-Harris and Nigel F. Telman on Posted in Litigation and Arbitration, Non-Competes and Protection of Corporate Assets
Illinois employers are still reeling from the Illinois Supreme Court’s refusal to review the decision in Fifield v. Premier Dealer Services, Inc., No. 1-12-0327 (Ill. App. Ct., 1st Dist. June 24, 2013).  In Fifield, the First District Appellate Court ruled that employee non-competition and non-solicitation agreements supported by consideration consisting of less than two years … Continue Reading
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