By Michael Tamvakologos & Ian Neil SC
This post has been cross-posted from Seyfarth’s Workplace Law & Strategy blog, and discusses Australian law on non-competes.
It seems like death by a thousand cuts. In August last year, Federal Treasurer Jim Chalmers announced a Competition Review to examine competition laws, policies and institutions to focus on reforms that would increase
Continue Reading Why the negative impact of non-competes is overstated
Yesterday, a third court weighed in on the FTC’s proposed ban on non-competes, set to go into effect on September 4, 2024. Judge Corrigan of the United States District Court for the Middle District of Florida granted the plaintiff Properties of the Villages, Inc.’s (“POV”) motion to stay the effective date of the rule and preliminarily enjoin its enforcement.
Continue Reading More Bad News for the FTC: Federal Court in Florida Enjoins Enforcement of Non-Compete Ban
The ongoing battle between DraftKings Inc. and its former executive, Michael Hermalyn, remains contentious, with the District of Massachusetts’ decision to enforce Hermalyn’s non-compete now appealed and argued to the First Circuit.
Background
DraftKings, a Boston-based online sports and gaming platform, employed Hermalyn as a Senior Vice President. He resigned in February 2024, consummating negotiations with DraftKings’ direct competitor, Fanatics
Continue Reading DraftKings Dispute with Former Executive Presents Battle Over Choice of Law for Non-Compete Agreements
On Tuesday, July 18, Chris DeMeo, serving as moderator, led a distinguished virtual panel featuring Jesse Coleman, alongside Tanzeela Ahmad (Senior Employment Counsel, Stryker), Robin Rogers (General Counsel & Chief Privacy Officer, CoventBridge), and Victor Wright (Vice President, Global Labor & Employment Law, Baker Hughes). They presented insights during a webinar hosted by the ACC on the timely topic of
Continue Reading Jesse Coleman and Chris DeMeo Headline Discussion with Industry Experts on 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
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
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)
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