FTC’s Crackdown on Non-Competes

On May 31, 2024, the Governor of Colorado signed House Bill 24-1324, titled “Attorney General Restrictive Employment Agreements,” putting into place a law to toughen protections for employees who are subject to abusive contracts ostensibly requiring repayment to employers for education and training expenses upon termination of employment, commonly referred to as “TRAPs” (Training Repayment Agreement Provisions). This new

Continue Reading Colorado Amends Non-Compete Law To Address Potential Abuses of Training Repayment Agreement Provisions (TRAPS)

Are nonprofit health care entities exempt from the Federal Trade Commission’s (FTC) Final Rule banning non-competes in worker agreements? The answer is not cut and dry. While the FTC’s authority generally stops at the doors of nonprofit entities, the FTC has warned in its Final Rule that it intends to vigorously enforce the ban wherever it can claim jurisdiction. The

Continue Reading FTC Signals Its Intent To Pursue Nonprofit Health Care Entities With Its Non-Compete Ban Whenever Possible

While the two federal actions in Texas challenging the FTC’s non-compete ban have garnered much of the attention to date, a challenge of the FTC’s rule brought by a small tree trimming business in Pennsylvania is now in the spot light as the federal court there has indicated that it will issue a ruling by July 23rd.

Earlier this

Continue Reading Pennsylvania Federal Court to Issue Decision On FTC Non-Compete Ban Challenge By July 23

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 Non-Compete Ban Allow for Accrued Actions?

Last year on the Policy Matters podcast, the team explored the fundamentals of non-compete agreements and examined what the adoption of the FTC’s proposed non-compete rule could mean for employers. Today, host Leon Rodriguez is joined by Daniel Hart and Dawn Mertineit to discuss the groundbreaking rule set to shake up non-compete agreements in the workplace, slated for enforcement starting

Continue Reading Policy Matters Podcast: Deciphering the FTC’s Non-Compete Overhaul

Dawn Mertineit, partner in Seyfarth’s Trade Secrets, Non-Competes & Data Privacy practice, authored an article titled, “The FTC’s non-compete ban: What to know and how to respond” on International Employment Lawyer.

Another notable limitation is contained in the final rule’s definition of a non-compete. Non-competes do not include clauses that only prohibit a worker from accepting work or operating a

Continue Reading Dawn Mertineit’s Article on FTC Non-Compete Ban Published by International Employment Lawyer

Plaintiff Fujikura Composite America, Inc. (“Fujikura”) is one of the most prominent golf club shaft designers and manufacturers. Per Fujikura, in the 2022-2023 PGA Tour season, half of all PGA tournaments were won by a player using a Fujikura shaft.

On May 1, 2024, in the United States District Court for the Southern District of California, Fujikura sued Alexander Dee

Continue Reading Former Engineer Accused of Shafting Prominent Golf Shaft Designer and Manufacturer

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

We invite you to watch our webinar, “Deciphering the FTC’s Non-Compete Ban: Navigating the New Regulatory Terrain and Adequately Protecting Employers’ Interests.” Our multi-disciplinary team, comprised of Michael Wexler, Robert Milligan, Kate Perrelli, Suzie Saxman, Marc Fosse, and Cary Burke, dissected the ramifications of the new FTC rule banning most non-competes with workers and provided invaluable insights into how it

Continue Reading Webinar Recap! Deciphering the FTC’s Non-Compete Ban: Navigating the New Regulatory Terrain and Adequately Protecting Employers’ Interests

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