Enacted in 2018, the Massachusetts Noncompetition Agreement Act (the “Act”) restricted employers’ use of non-competition agreements in a variety of ways, including requiring compensation during the post-employment restricted period and prohibiting enforcement against non-exempt employees or those terminated without cause. While the Act explicitly excludes covenants not to solicit from its definition of noncompetition agreements
Earlier today (July 23, 2024), Judge Hodge in the U.S. District Court for the Eastern District of Pennsylvania denied a tree care company’s motion to stay the effective date and preliminarily enjoin the Federal Trade Commission’s (“FTC”) proposed final rule (“Final Rule”) banning nearly all non-competes. ATS Tree Services, LLC v. Federal Trade Commission
Joining an emerging trend of legislative and regulatory hostility towards non-compete agreements, on February 28, 2024, the New York City Council introduced three new bills proposing restrictions on non-compete agreements in New York City. Int. No. 140 proposes an outright ban on non-compete agreements for all workers in New York City. Int. No. 146 and
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,