Tag Archives: non-compete

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

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

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

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

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

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

By John Barry on August 24, 2017 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 July 7, 2017 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

Illinois Prohibits Non-Compete Agreements with Low-Wage Employees

By John Barry, Sunghee Sohn and Steven J. Pearlman on August 29, 2016 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

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