Category Archives: Non-Competes and Protection of Corporate Assets

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

By Joseph O’Keefe, Steven J. Pearlman, Alyssa M. Cook and Daryl Leon on January 26, 2023 Posted in Non-Competes and Protection of Corporate Assets

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

By Steven Hurd, Daryl Leon and Scott Tan on January 6, 2023 Posted in Biden Administration Coverage, Non-Competes and Protection of Corporate Assets

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

D.C.’s New Restrictive Non-Compete Law Goes Into Effect October 1, 2022

By Guy Brenner and E. Sydney Cone on September 29, 2022 Posted in Non-Competes and Protection of Corporate Assets, Workplace Policies and Procedures

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

D.C. Council Passes Law Significantly Scaling Back Non-Compete Ban

By Guy Brenner and E. Sydney Cone on July 21, 2022 Posted in Non-Competes and Protection of Corporate Assets, Workplace Policies and Procedures

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

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

By Scott Tan, Daryl Leon, Joseph O’Keefe and Steven J. Pearlman on July 6, 2022 Posted in Biden Administration Coverage, Non-Competes and Protection of Corporate Assets

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

By Steven J. Pearlman, Joseph O’Keefe, Daryl Leon and E. Sydney Cone on June 10, 2022 Posted in Biden Administration Coverage, Non-Competes and Protection of Corporate Assets, Trade Secrets, Wage and Hour

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

Washington Passes “Silenced No More Act” Limiting Nondisclosure and Nondisparagement Provisions In Employment And Independent Contractor Agreements

By Guy Brenner and E. Sydney Cone on March 29, 2022 Posted in Non-Competes and Protection of Corporate Assets

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

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

By Guy Brenner, Daryl Leon and E. Sydney Cone on March 2, 2022 Posted in Non-Competes and Protection of Corporate Assets

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

By Guy Brenner, Daryl Leon and E. Sydney Cone on December 14, 2021 Posted in Biden Administration Coverage, Non-Competes and Protection of Corporate Assets

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

By Guy Brenner and Daryl Leon on November 18, 2021 Posted in Non-Competes and Protection of Corporate Assets, The Proskauer Brief Podcast

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

By Guy Brenner and Daryl Leon on October 20, 2021 Posted in Non-Competes and Protection of Corporate Assets, The Proskauer Brief Podcast

DC Ban on Non-Competes Postponed to April 1, 2022

By Guy Brenner on August 30, 2021 Posted in Non-Competes and Protection of Corporate Assets

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

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

By Guy Brenner and Dominique Kilmartin on July 16, 2021 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 July 9, 2021 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 May 26, 2021 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 January 13, 2021 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 December 18, 2020 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 September 3, 2020 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 January 30, 2020 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 May 13, 2019 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 October 9, 2018 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 August 28, 2018 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 August 13, 2018 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 April 19, 2018 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

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