FTC’s Crackdown on Non-Competes

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?

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

Last week on April 23, 2024, the FTC adopted a final rule that would effectively ban non-compete agreements in the context of employment relationships when the rule becomes effective on September 4, 2024, absent a stay or injunctive relief.  The rule would render unenforceable a broad array of employment-based non-competition agreements.  It would also require that employers provide notice to

Continue Reading Looking Past the Headlines, the Impact of the FTC’s Ban on Non-Competes in M&A, Private Equity and Venture Capital

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)

At least three lawsuits have now been filed against the FTC to block implementation of its new rule to ban non-competes.

The first suit was filed in Texas federal court (Northern District) the day that the rule was announced by a global tax preparation service.

Next, the US Chamber of Commerce and related business associations filed suit in federal court

Continue Reading Lawsuits Filed To Block FTC’s Non-Compete Ban