FTC’s Crackdown on Non-Competes

100 business organizations submitted a letter today requesting a 60 day extension on the March 20, 2023, comment period deadline on the FTC’s proposed rule banning non-competes with employees and workers. The business organizations include organizations in manufacturing, commerce, retail, insurance, franchise, health care, technology, financial services, construction, and staffing.

Continue Reading Business Organizations Seek Extension on Comment Period Deadline on FTC’s Proposed Rule Banning Non-Competes

In the second installment of the 2023 Trade Secrets Webinar Series, Seyfarth attorneys reviewed noteworthy legislation, cases, and legal developments from across the nation over the last year in the areas of trade secrets and data theft, non-competes and other restrictive covenants, and computer fraud. Plus, they provided predictions for what to expect in 2023.

As a conclusion to this

Continue Reading Webinar Recap! 2022 Trade Secrets & Non-Competes Year in Review

The FTC’s proposed rule banning non-competes with employees and workers has now been published in the Federal Register.

The rule would provide that noncompete clauses are an unfair method of competition and as a result, the rule would ban employers from entering noncompete clauses with their employees and workers (defined by the FTC to include independent contractors and others). The rule would require employers to rescind existing noncompete clauses with workers and actively inform their employees that the contracts are no longer in effect. The rule would include a limited exception for non-compete clauses between the seller and buyer of a business. This exception would only be available where the party restricted by the non-compete clause is an owner, member, or partner holding at least a 25% ownership interest in a business entity.

Continue Reading Comments on FTC’s Proposed Rule Banning Non-Competes With Employees and Workers Now Due March 20th 

On Thursday, January 19 at 10 a.m. Eastern, Boston partner Dawn Mertineit is presenting a webinar for the Federal Bar Association and myLawCLE. The “Drafting and Enforcing Restrictive Covenants in Multiple Jurisdictions” webinar covers best practices and key tips for businesses with employees in multiple jurisdictions, from drafting restrictive covenants agreements, implementing a plan to roll those agreements out, and

Continue Reading Dawn Mertineit to Present Webinar on Drafting and Enforcing Restrictive Covenants in Multiple Jurisdictions

In the first installment of our 2023 Trade Secrets & Non-Competes Webinar Series, Seyfarth partners Kate Perrelli, Michael Wexler, Robert Milligan, Dan Hart, and Dawn Mertineit discussed the new Federal Trade Commission’s (“FTC”) proposed rule banning the use of non-competes with employees and workers. The expert panel addressed what the proposed rule would do and what employers need to know

Continue Reading Webinar Recap! FTC Proposes Rule Banning Use of Non-Competes. Now What?
Trade Secrets Year in Review Webinar

Tuesday, January 24, 2023
1:00 p.m. to 2:00 p.m. Eastern
12:00 p.m. to 1:00 p.m. Central
11:00 a.m. to 12:00 p.m. Mountain
10:00 a.m. to 11:00 a.m. Pacific

REGISTER HERE

In the second installment of the 2023 Trade Secrets Webinar Series, Seyfarth attorneys will review the noteworthy legislation, cases, and legal developments from across the nation over the last year

Continue Reading Upcoming Webinar! 2022 Trade Secrets & Non-Competes Year in Review

As our colleagues have previously reported in this blog, on January 5, 2023, the Federal Trade Commission issued a notice of proposed rulemaking (NPRM) concerning its unprecedented effort to ban all non-compete clauses with workers and to preempt state law on the issue. The NPRM followed just one day after the FTC announced that it had reached a consent settlement with three companies for alleged unfair trade practices by imposing overly burdensome non-compete agreements.

Not surprisingly, the NPRM has sparked a surge of commentary in the legal and business communities and immediately courted controversy. The sole Republican member of the FTC, Commissioner Christine S. Wilson, issued a vigorous dissent, arguing:

Continue Reading Answering the $296 Billion Question: FTC’s Proposed Rulemaking on Worker Non-Competes Likely to be Found Unconstitutional

Thursday, January 12, 2023
3:00 p.m. to 4:00 p.m. Eastern 
2:00 p.m. to 3:00 p.m. Central
1:00 p.m. to 2:00 p.m. Mountain
12:00 p.m. to 1:00 p.m. Pacific

REGISTER HERE

In the first installment of the 2023 Trade Secrets & Non-Competes Webinar Series, our team will focus on the new Federal Trade Commission’s (“FTC”) proposed rule banning the use of

Continue Reading Upcoming Webinar! FTC Proposes Rule Banning Use of Non-Competes. Now What?

Earlier today, the Federal Trade Commission (“FTC”) published a proposed rule which would ban all non-compete agreements between employers and “workers” (broadly defined to include employees, independent contractors, interns, and others). If adopted, the proposed rule will bar both prospective and existing non-compete agreements. The FTC included an overview fact sheet describing the proposed rule.

The FTC is seeking public comment on the proposed rule, which is based on a preliminary finding that non-competes constitute an unfair method of competition and therefore violate Section 5 of the Federal Trade Commission Act. This proposed rule aligns with the FTC’s recent statement to attempt to reinvigorate Section 5 of the FTC Act, which bans unfair methods of competition.

Continue Reading FTC Proposes Rule Banning Use of Non-Competes with Employees and Workers and Limiting Employer Protections Against Unfair Competition

In the final 2022 webinar, Seyfarth attorneys Kate Perrelli, Dan Hart, and Dallin Wilson discussed new and pending legislation and enforcement issues for non-competes.

As a conclusion to this webinar, we compiled a summary of takeaways:

  • State law on restrictive covenant agreements continues to evolve, with more states imposing compensation thresholds, notice requirements, penalties, and other obligations on employers that
Continue Reading Webinar Recap! Overview of Non-Compete Legislation and Enforcement Issues from 2022