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Employment Contracts

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.

Older workers could get new exemption from mandatory arbitration agreements

06/28/2024
Congress is considering legislation that would ban mandatory arbitration of disputes involving older workers covered by the Age Discrimination in Employment Act.

SHRM: HR opposes FTC’s ban on noncompetes

05/31/2024
The Society for Human Resource Management has filed a friend-of-the-court brief in a lawsuit that seeks to overturn the Federal Trade Commission’s blanket prohibition on noncompete agreements.

4 questions and answers about FTC’s new noncompete ban

05/03/2024
On April 23, the Federal Trade Commission issued a final rule that bans almost all new noncompete agreements and makes existing ones unenforceable. FTC documents say the ban is necessary because requiring employees to sign noncompete agreements amounts to illegal restraint of trade.

FTC bans almost all noncompete agreements

04/26/2024
Almost all noncompete agreements will be banned under a final rule approved April 23 by the Federal Trade Commission. The rule will take effect 120 days after it is published in the Federal Register, which should happen within a week.

Regulate your use of noncompete agreements before the government does it for you

04/10/2024
Legally speaking, to be enforceable, a post-employment restrictive covenant must be narrowly tailored by time, geography and a reasonable business interest worthy of protection. Yet, like a recent example, all too often employers require too many employees to sign overly broad and overly restrictive agreements. It’s bullying and a scare tactic.

Prepare for FTC, states to ban noncompete agreements

03/13/2024
Typically state-regulated, noncompetes must cover a reasonable geographic area, be specific about the kind of work covered and expire after a reasonable time period. But the Biden administration generally views noncompete agreements as inherently anti-competitive and unfair when applied to workers in low-wage positions.

NLRB moves to ban noncompetes, but options remain

07/17/2023
In a memo to the agency’s regional directors, NLRB General Counsel Jennifer Abruzzo announced her conclusion that including noncompete agreements in employment and severance agreements violates the National Labor Relations Act.

Summer’s here and so are new employment laws

07/07/2023
Summertime is often when new employment laws take effect, and this summer is no exception.

Supreme Court ruling streamlines process for resolving disputes via arbitration

06/30/2023
In a move that may cut legal costs for employers that still use arbitration agreements, the U.S. Supreme Court ruled June 23 that questions about arbitration terms must be decided before a lawsuit filed in federal court can proceed.