Yesterday, the Court in the ATS Tree Services v. FTC case denied Plaintiff ATS Tree’s Motion to Stay and Enjoin the FTC’s recent ban on non-compete agreements (the “Final Rule”), because, the Court held, ATS Tree failed to establish irreparable harm and a likelihood of success on the merits. This puts this court’s ruling in direct conflict with the July
Continue Reading Federal Court in Pennsylvania Creates District Split on Enforceability of FTC Non-Compete Ban
An administrative law judge (“ALJ”) of the National Labor Relations Board (“NLRB”) in J.O. Mory, Inc. recently required an employer to rescind certain restrictive covenants in its employment agreements. The decision is yet another attack on non-competes in line with the NLRB General Counsel’s May 30, 2023 memo (“Abruzzo Memo”) (see our prior article here), and apparent coordination
Continue Reading NLRB’s Non-Compete Power Grab – Can Employers Avoid NLRB’s Oversight?
In a rapid-fire response, the Ryan Court in the Northern District of Texas this morning denied Plaintiff and Plaintiff-Intervenors’ Expedited Motion for Limited Reconsideration of the Scope of Preliminary Relief, and Plaintiff and Plaintiff-Intervenors’ Motion for Expedited Consideration of their Motion for Limited Reconsideration of the Scope of Preliminary Relief (for more on these motions, see here). In a
Continue Reading UPDATE: Texas Judge Swiftly Denies Plaintiffs’ Request to Expand Scope of Injunction in FTC Non-Compete Ban Case
Having achieved a milestone in obtaining a limited preliminary injunction halting the application of the FTC ban on non-competes effective September 4, 2024 as to the named plaintiffs and plaintiff-intervenors in its Texas lawsuit, the U.S. Chamber of Commerce et al. and Ryan, LLC moved today, July 10, to expand the injunction to apply more broadly. Specifically, plaintiffs moved Chief
Continue Reading U.S. Chamber and Ryan Seek to Expand Injunction Halting FTC Non-Compete Ban
The Court ruled on Wednesday, July 3, what most of the legal community already believed: that the FTC lacked the substantive rulemaking authority to issue a nationwide ban on non-competes between employers and workers. Nevertheless, the ruling itself is not likely one that anyone expected.
On the one hand, the Court enjoined the FTC Rule, holding that “the
Continue Reading Preliminary Analysis on the Ryan Court’s Order Enjoining the FTC’s Ban on Non-Competes
Against the backdrop of the FTC’s rule banning non-compete agreements nationwide and the lawsuits challenging that rule, many states have considered legislation narrowing or outright banning non-competes. Minnesota recently followed California, Oklahoma and North Dakota in adopting legislation banning all employment-based non-compete agreements. Washington state adopted additional requirements for using non-competes with its residents. And, Colorado recently limited the use
Continue Reading Rhode Island Governor Vetoes Proposed Non-Compete Ban
The FTC’s recently issued Final Rule banning non-competes for most workers prohibits an employer from (1) threatening to enforce a non-compete against a worker, (2) advising the worker that, due to a non-compete, they should not pursue a particular job opportunity, or (3) telling the worker that the worker is subject to a non-compete.[1] The FTC asserts that these
Continue Reading The FTC’s “Good Faith” Exception to the Non-Compete Ban: Pending Legal Challenges Are Not a Basis for Non-Compliance
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