In the world of restrictive covenants, 2023 got off to a hot start when, in early January, the Federal Trade Commission (FTC) issued a Notice of Proposed Rulemaking (NPRM) to broadly ban the use of non-compete covenants nationally. Now, Congress has stepped into the fray, with a bipartisan group of Senators reintroducing a bill that
A More Thorough Review of the FTC’s Proposed Non-Compete Rule
On January 5, 2023, the Federal Trade Commission (FTC) issued a Notice of Proposed Rulemaking (NPRM) to broadly ban the use of non-compete covenants throughout the country. The proposed rule, which would supersede all contrary state laws, is remarkable for its sweeping definition of “non-compete clauses” that fall within the ban. Jackson Lewis provided an
FTC Proposes Rule Broadly Banning Use of Non-Compete Agreements
The Federal Trade Commission (FTC) has issued a Notice of Proposed Rulemaking to broadly ban the use of non-compete covenants throughout the country. The proposed rule, which would supersede all contrary state laws, would extend to “de facto” non-compete clauses, i.e., contractual provisions that have the effect of prohibiting workers from seeking or accepting employment
Colorado Senate Passes Non-Compete Bill to Further Limit Use of Agreements and Increase Non-Compliance Penalties
The Colorado Senate recently passed House Bill 22-1317 which, if enacted into law, would significantly limit the enforceability of any non-compete agreements executed after the law’s effective date for employers with employees working or living in Colorado. If Governor Polis signs the proposed legislation, it could go into effect as early as August 10, 2022.
D.C. Non-Compete Ban Applicability Date Postponed to October 1, 2022
As reported in a web article prepared by our D.C. colleagues Matt Nieman, Joe Schuler, Caroline Cheng, and Alyssa Testo, found here, the District of Columbia Council again has deferred the “applicability date” of the D.C. Non-Compete Ban, this time to October 1, 2022. We previously reported about this law, and the first deferral
Reaction and Response to the FTC & DOJ Workshop on Labor Market Competition
The Federal Trade Commission (FTC) and the Department of Justice (DOJ) hosted a virtual workshop on December 6-7, 2021, bringing together agency representatives, lawyers, economists, academics, and other experts to discuss issues affecting competition in the labor market (“Workshop”).
We attended the Workshop virtually and co-signed a response letter (drafted by our friends Russell Beck
New Bills Seek to Void Restrictive Covenants for Employers with Vaccine Mandates
Employers in the U.S. are facing regulatory upheaval on multiple fronts. The federal government has taken up a new interest in potentially limiting the applicability of restrictive covenants, such as non-compete agreements. Meanwhile, the Occupational Safety and Health Administration (OSHA) has issued an Emergency Temporary Standard (ETS) (currently stayed by the Fifth Circuit) requiring employers
Illinois Governor Signs New Non-Compete Bill
The Illinois General Assembly passed a major bill in May that significantly alters how and when employers can use restrictive covenants with Illinois employees. Illinois Governor JB Pritzker signed the bill into law on August 13, 2021, and it will go into effect January 1, 2022.
We provided details and analysis on the new law
Why We Signed a Joint Letter Urging Caution in Non-Compete Regulation
Earlier this month, President Joseph Biden issued an Executive Order encouraging the Federal Trade Commission (FTC) to “curtail the unfair use of non-compete clauses and other clauses or agreements that may unfairly limit worker mobility.”
We joined more than 50 lawyers and paralegals around the country – all of us experienced restrictive covenant practitioners –
D.C. Budget Bill Includes April 1, 2022 Applicability Date for Non-Compete Ban
The District of Columbia passed one of the nation’s most stringent regulations on covenants not to compete earlier this year. Except in very limited circumstances, the law states employers may not require or request employees sign an agreement that includes a non-compete provision, and employers cannot have a workplace policy that prohibits an employee from