Employment Contracts

Use these 3 factors to review ‘stay-or-pay’ agreements

05/15/2025

Employers should review their agreements to ensure that under state law, they constitute valid contracts. The answer will depend on each state’s contract and other laws. To increase the likelihood that a stay-or-pay contract will pass muster, review it with an eye toward these factors.

Electronic signatures: What employers need to know

04/09/2025

For centuries, a signature at the bottom of a piece of paper has meant someone agrees with what the document says. Can keystrokes carry the same legal weight as pen strokes? Yes. Two federal laws establish the legality of e-signatures in this country: the UETA and E-SIGN.

A tale of two approaches to noncompete agreements

03/13/2025

Don’t overuse noncompetes just because you can. Tailor your agreements to what you actually need to protect.

Do you read the fine print before you sign?

10/28/2024

The Department of Labor has identified seven fine-print provisions in employment contracts that it believes violate the FLSA and the OSH Act.

FTC appeals court order that killed noncompete ban

10/28/2024

The Federal Trade Commission on Oct. 18 filed an appeal seeking to overturn a federal court’s ruling that the FTC did not have the authority to issue a rule banning noncompete agreements nationwide.

FTC can’t enforce its ban on noncompete agreements

09/19/2024

Janitors, security guards and fast-food employees probably shouldn’t be required to sign noncompete agreements, but many are. Last spring, the Federal Trade Commission tried to remedy this by issuing final regulations banning most noncompete agreements. A federal trial court has now issued a nationwide injunction prohibiting the FTC from enforcing them.

Federal court kills FTC noncompete ban

08/21/2024

A federal court in Texas has issued a summary judgment in a case challenging the Federal Trade Commission’s rule that would have banned noncompete agreements.

Prepare to notify current and past employees about FTC’s pending noncompete ban

08/19/2024

The Federal Trade Commission’s rule banning noncompete agreements is set to take effect Wednesday, Sept. 4. In addition to forbidding employers from enforcing existing noncompete agreements and requiring employees to sign new ones, the rule says employers must notify current and past employees who have signed noncompete agreements about the ban. Plan now to comply with the notification requirement—even though the rule may never go into effect.

Judge declines to block FTC noncompete ban, setting up potentially protracted legal fight

07/29/2024

ATS Tree Services asked Judge Kelley Hodge of the U.S. District Court for the Eastern District of Pennsylvania to issue a preliminary injunction blocking the rule.

Court order signals FTC’s noncompete ban may be struck down

07/08/2024

A federal judge in Texas on July 3 issued a preliminary injunction that partially prohibits the Federal Trade Commission from enforcing a rule that bans employers from using noncompete agreements. The court’s ruling likely means the rule will be overturned before it takes effect in September.