The FTC’s noncompete ban is mentioned in President Biden’s State of the Union. Not surprisingly, we’ve fact-checked it.
On February 16, 2023 (from noon to 3:00 PM ET), the FTC will be holding a “public forum” on its proposed noncompete ban. If you are interested in speaking at it, you will need to reserve a spot.
Eleven states plus Washington, D.C. have wage thresholds or other criteria that must be satisfied before a noncompete can be used. We now know that six have increased. Are your noncompetes still compliant?
Quick update: 18 states have 42 new noncompete bills, and Congress has 3. The ramp-up to legislatively limit noncompetes continues.
The day an employee shows up for their first day of work is often the day they learn that a noncompete is a requirement of the job. But, according to a 2015 study by Professors Evan Starr, J.J. Prescott, and Norm Bishara, providing advance notice that a noncompete will be required actually leads to 11% more training and 6.6% more job satisfaction. Eight states plus D.C. now have some requirements. Make sure you are complying.
Episode 21 of Fairly Competing is out! Join us in a discussion with Professor Evan Start about the research behind the FTC’s proposed noncompete ban.
The deadline to comment on FTC’s proposed rule to ban noncompetes may be extended to May 19. Make sure your voice is heard, whether joining us in our letter or separately.
The FTC’s proposed rule to ban noncompetes will publish in the federal register tomorrow. If you care, you have until March 20 (assuming no extensions) to make sure your voice is heard. You are welcome to join us in our letter.
Quick update: 13 states have 25 new noncompete bills. Two states propose total bans and four propose low-wage thresholds.
Our updated graph of noncompete, trade secret, and DTSA decisions is now available. Noncompete decisions remain level, while trade secret decisions continue to trend up.
Forty-seven state legislatures as well as Washington, D.C. – with the approval of Congress – have spent years honing their noncompete laws to fit their local communities and industries. In one fell swoop, three Commissioners at the FTC are proposing to undo all of it. With it, they will also eliminate the use of a broad swath of nondisclosure, nonsolicitation, no-service, no-recruit, and no-hire agreements. Companies have six things they need to do now.
US Rep Spartz sent a brief letter to the FTC raising concerns about the proposed rule to ban noncompetes.
Episode 20 of Fairly Competing is out! Join us to hear about the FTC’s recent proposed noncompete ban and enforcement actions and what to do about them.
Today, the FTC took the unprecedented step of proposing a rule that would essentially ban all employee noncompetes — and other agreements if they can be interpreted as a “de facto” noncompete.
Well, we now know what the FTC will do about companies using noncompetes: They are bringing enforcement actions against them. And, this is likely just the beginning.
In Part 2 of our tour of the history of trade secret law and developments since before Roman times, we pick up while Newton is inventing calculus.
Episode 19 of Fairly Competing is out! Join us for the key developments in trade secret and restrictive covenant law from the past year.
As we ponder the best ways to protect trade secrets today, it’s good to have a quick reminder that this has been a long-term issue. So, we’ll take a two-part tour of trade secret law and developments from before Roman times to now.
A decision from last week, juxtaposed against two other recent decisions, highlights that the law of no-recruit agreements is, like the law of noncompetes, “a sea — vast and vacillating, overlapping and bewildering. One can fish out of it any kind of strange support for anything, if he lives so long.”
Our 50-state (plus DC) chart of noncompete laws has been updated and is available here.
The FTC and DOJ contend that no-poach/no-hire covenants in (old) McDonald’s franchise agreements constitute an antitrust violation.
We are pleased to announce that we were selected for inclusion in the top 10 trade secret blogs.
There is a fifth decision involving a noncompete under the Massachusetts Noncompetition Agreement Act, G.L. c. 149, § 24L - and it provides some helpful guidance.
Episode 18 of Fairly Competing is out! In this episode, we talk with AIPLA President, Brian Batzili, immediate past-President, Patrick Coyne, and Executive Director, Vince Garlock, about their experience with the AIPLA, the Trade Secret Law Committee, and trade secret law more generally.