In April 2024, we wrote about the Federal Trade Commission’s (FTC) issuance of a “Final Rule” banning employee non-compete clauses, scheduled to take effect on September 4, 2024. Over the last few months, three federal courts have addressed whether a preliminary injunction should stay the rule’s effective date pending the conclusion of lawsuits
Non-Compete Bill
Pennsylvania Federal Court Refuses to Prevent FTC Non-Compete Ban from Taking Effect
Earlier this month, we wrote about a Texas federal court’s issuance of a limited preliminary injunction staying the Federal Trade Commission’s (FTC) rule banning non-compete clauses for the plaintiffs in that case. Despite not issuing a preliminary nationwide ban, the Texas federal court stated it would render a final decision on August 30, 2024, before…
Texas Federal Court Issues Preliminary Injunction against FTC Non-Compete Ban Rule
We previously wrote about the Federal Trade Commission’s (FTC) issuance of a rule banning non-compete clauses in employment. The FTC’s issuance of its final rule banning non-compete clauses constituted an unprecedented intrusion into matters of state law, which governed non-compete clauses. Nevertheless, it appears now that the FTC’s non-compete ban is beginning to unravel.
Last…
FTC Issues Final Rule Banning Non-Compete Clauses
Two days ago, the Federal Trade Commission (FTC) issued its “Final Rule” banning non-compete clauses in employment. Until now, the FTC never officially declared that such clauses constituted an “unfair method of competition.” The Final Rule seeks to upend centuries of state law governing the use of non-compete clauses in employment, including state laws that…
Governor Hochul Vetoes NYS Non-Compete Bill
On December 22, 2023 Governor Kathy Hochul vetoed a bill that would have imposed a ban on non-compete clauses throughout the state of New York for all employees, regardless of earnings level. We wrote about the Senate and Assembly bills that were passed in June, here.
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After Years of Debate, Massachusetts Finally Passes Non-Compete Bill
Just as the 2018 legislative session came to a close on the night of July 31, 2018, the Legislature passed a bill reforming the law of noncompetition agreements (“noncompetes”) in Massachusetts. The bill is being viewed as a compromise following years of unsuccessful efforts to pass noncompete reform. The governor is expected to sign the bill into law in the coming days.
Continue Reading After Years of Debate, Massachusetts Finally Passes Non-Compete Bill