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The FTC’s Final Rule banning non-competes in worker agreements contains a noteworthy exception that its provisions “do not apply where a cause of action related to a non-compete clause accrued prior to the effective date.”[1] The “existing cause of actions” exception, codified as Section 910.3(b), is a new addition that was not included in the FTC’s proposed rule issued

Continue Reading Cutting Off Claims – When Does the FTC Noncompete Ban Allow for Accrued Actions?

The district court in the Northern District of Texas recently set the briefing schedule on Plaintiff Ryan’s Motion to Stay the FTC Non-Compete Ban and Preliminary Injunction:

  • The Court ORDERS Defendant FTC to file any opposition to Plaintiff Ryan’s Motion for Stay of Effective Date and Preliminary Injunction, by May 22, 2024.
  • The Court further ORDERS Plaintiff Ryan to file
Continue Reading Federal District Court To Rule on Plaintiffs’ Motion for Stay of FTC Non-Compete Ban and Preliminary Injunction Most Likely By July 3rd

On May 3, 2024, the United States District Court for the Eastern District of Texas entered an Order staying the proceedings in Chamber of Commerce v. FTC by granting the FTC’s motion to apply the first-to-file doctrine, in which a district court should generally order “stay, transfer, or dismissal” of a second-filed action that substantially overlaps with a pending, first-filed

Continue Reading FTC Non-Compete Ban Lawsuits Update: Eastern District of Texas Stays Chamber of Commerce Suit in Favor of Ryan LLC as First-to-File

On April 23, 2024, the Federal Trade Commission (FTC) voted in a 3 to 2 decision along party lines to adopt its Final Non-Compete Clause Rule (“Noncompete Rule”) banning post-employment non-compete clauses between employers and their workers. The Noncompete Rule is scheduled for publication in the Federal Register on May 7, 2024, giving the rule an Effective Date of

Continue Reading Analysis of FTC Non-Compete Ban Legal Challenges: Does the Ban Pass Constitutional Muster? (And Other Issues)

On April 23, 2024, the FTC announced its Final Non-Compete Clause Rule (“Final Rule”), which bans post-employment non-compete clauses between employers and their workers. The Final Rule becomes effective 120 days after being published in the Federal Register (Effective Date).[1] As of the date of this paper, the Final Rule has not been published in the Federal Register.

Key

Continue Reading FTC Non-Compete Ban: What You Need to Know

On April 18, 2024, the Federal Trade Commission (“FTC”), Justice Department (“DOJ”), and the U.S. Department of Health and Human Services (“HHS”) launched an online reporting portal, HealthyCompetition.gov, for the public to report potentially unfair and anticompetitive health care practices. The online reporting portal provides examples of unfair and anticompetitive health care practices under existing antitrust laws including:

  1. “consolidation,
Continue Reading All Gas No Brakes – The FTC, DOJ, and HHS Unveil Online Reporting Portal as Latest Effort to Combat Unfair and Anticompetitive Health Care Practices

This afternoon, the FTC voted to adopt a proposed final rule banning most non-competes with workers in the United States. The final rule provides that it is an unfair method of competition—and therefore a violation of Section 5 of the FTC Act—for employers to enter into non-competes with workers. The Commission found that non-competes tend to negatively affect competitive conditions

Continue Reading FTC Approves Rule Banning Non-Competes With Workers

Tuesday, May 28, 2024
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About the Program

In today’s ever-evolving and interconnected world, trade secret protection demands proactive measures against both technological vulnerabilities and human threats. Join us for the fourth installment of our

Continue Reading Upcoming Webinar! Data Protection and Cybersecurity: Safeguarding Trade Secrets in the Digital Age

On March 21, 2024, the Federal Deposit Insurance Corporation (“FDIC”) approved a Federal Register notice seeking public comment on its proposal to revise its current Statement of Policy on Bank Merger Transactions. Among the proposed revisions, the agency’s proposal will prohibit non-compete agreements in bank mergers in which the selling bank is required to divest all or a portion

Continue Reading FDIC Updates Bank Merger Guidance to Include Non-Compete Ban

On May 31, 2023, a Harris County Texas District Court jury found a telecom company acted in bad faith by filing a $23 million trade secret misappropriation lawsuit against a rival where the underlying technology was found to not actually be a trade secret.

Background & Analysis

In February 2019, Telecom firm Teligistics, Inc. (“Teligistics”) sued its rival Advanced Personal Computing, Inc. d/b/a Liquid Networx (“Liquid Networx”) and company executives Travis Wood and Robert Short, alleging they misappropriated trade secrets concerning its online platform for handling contracts named Telibid. Specifically, Teligistics alleged a former Liquid Networx employee obtained a copy of Teligistic’s internal Request for Proposal (“RFP”) in order to “tweak” Liquid Networx’s internal RFP, rather than spending time and resources developing their own RFP. Continue Reading Not All Documents Labeled Confidential Actually Are: Texas Jury Finds $23M Trade Secret Case Was Brought in Bad Faith