Eleven states and Washington, D.C. have wage thresholds or other criteria that must be satisfied before a noncompete can be used. Several of those states have thresholds for other restrictive covenants as well. Seven increased in 2024. Are your noncompetes and other restrictive covenants compliant?
Companies frequently ask whether they should request a copy of any restrictive covenants from job candidates. Should they? We answer the question.
Episode 23 of Fairly Competing is out! Join us for a discussion of California’s updated anti-restrictive covenant laws, what the laws purport to do them, and what companies can do to limit the impact of the new laws.
The sky is not falling on noncompetes. Here is everything you need to know about key developments in the states, Congress, federal agencies, and the courts in 2023.
When employees change jobs, everyone is at risk: the employee; the former employer; and the new employer. On-boarding is last, best opportunity to prevent potential problems before they arise. There are easy steps employees and new employers can take to minimize the impact.
Off-boarding and on-boarding are perhaps the two most critical junctures in the employment lifecycle. When employees change jobs, everyone is at risk: the employee; the former employer; and the new employer. But there are easy steps employees, former employers, and new employers can take to minimize the impact.
An ounce of prevention is worth a pound of cure. We have updated our checklist for protecting trade secrets.
The recording of a roundtable brainstorming session among more than 40 restrictive covenant / trade secret / employee mobility lawyers from around the country discussing the nationwide impact of California’s new, expanded anti-restrictive covenant laws is now available. The conclusion? Houston, we have a problem.
Two new California laws will fundamentally alter the national noncompete landscape, effectively voiding other states’ laws and contracts, and adversely impacting companies’ ability to protect their trade secrets, confidential business information, customer goodwill, and other legitimate business interests. Join us and over 40 other lawyers for a roundtable brainstorming session.
The aesthetics spa charged by the General Counsel of the National Labor Relations Board (NLRB) with engaging in unfair labor practices for using restrictive covenants is seeking to have the case dismi...
The Delaware Supreme Court heard oral arguments today about the standard applicable to forfeiture-for-competition provisions.
California passed another anti-noncompete, anti-nonsolicit law. The law says that California’s prohibition on restrictive covenants is to be read broadly and requires companies to notify employees subject to a covenant that violates that law that their restrictions are void and unenforceable. It operates retroactively and, not surprisingly, there are penalties.
Another anti-noncompete, anti-nonsolicit bill in California is now on the Governor’s desk. The bill says that California’s prohibition on restrictive covenants is to be read broadly and requires companies to notify employees subject to a covenant that violates that law that their restrictions are void and unenforceable. It operates retroactively and, not surprisingly, there are penalties.
FTC and DOL have entered an MOU to “protect” workers from noncompetes, nondisclosure agreements, and other restrictive covenants.
Noncompetes are under attack by legislatures, federal agencies, Congress and others. But the sky is not falling. Noncompetes are not dead.
The NLRB is testing its theory that noncompetes and other covenants constitute unfair labor practices under the NLRB. Employers take note.
With the increasing hostility toward noncompetes over the past decade or so, Delaware had seemed like a safe option for choice of law and forum selection clauses. That may no longer be true.
FTC Chair testified at an oversight hearing before the House Judiciary Committee. She didn’t say much of substance on noncompetes, but so-called “enforcement actions” will continue. The time to take action is now - but don’t throw the baby out with the bathwater.
The noncompetes bill frenzy continues: 33 states with 84 noncompete bills so far, and 5 more in Congress, 11 dead, 7 passed, 2 about to.
The U.S. House Committee on Oversight and Accountability is investigating FTC Chair Lina Khan. Next up, an investigation into NLRB GC Jennifer A. Abruzzo?
U.S. Chamber of Commerce calls the NLRB’s finding that most noncompetes are illegal a “blatantly unlawful overreach” and will challenge it.
As predicted, the FTC is continuing to bring enforcement actions against companies using noncompetes. Are you ready?
Education comes at a price. But not this time. Beck Reed Riden is making available its Ten Minute Trade Secret Training Series videos freely available - and available for free. With the FTC rule banning noncompetes on the horizon and more states limiting the use of noncompetes, it is now more imperative than ever before that companies and employees take steps to protect their trade secrets, other confidential information, and customer relationships.
Once again, we have resounding unanimity on the issues and recommendations to the FTC, as they consider whether to move forward with their plan to ban noncompetes, as well as some nondisclosure agreements and other restrictive covenants. Over 100 lawyers who practice extensively in the area of trade secret and restrictive covenant law agree: federal regulation is likely inappropriate, definitely premature, and, in any event, should be limited.