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Employment Contracts

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.

Employees can tell it like it is (or isn’t)

04/06/2023
The National Labor Relations Board has issued a broad decision invalidating these non-disclosure and non-disparagement agreements when offered in conjunction with severance pay in a union setting. Even offering a severance package contingent on employees signing these agreements is out of bounds, according to the decision.

NLRB counsel doubles down on severance agreement invalidity

03/30/2023
Back in February, the National Labor Relations Board ruled that non-disparagement and confidentiality clauses commonly embedded in severance agreements are illegal. Now, board general counsel Jennifer Abruzzo has issued a memo clarifying the scope of the decision.

Bills introduced in Congress to ban noncompete agreements

03/20/2023
In January, the FTC announced a sweeping proposed regulation that would invalidate all existing noncompete agreements and free employees currently bound by them. The proposed rule is still in the comment phase and likely will face a legal challenge from business groups including the U.S. Chamber of Commerce. Now, Congress has entered the fray.

Consider these alternatives to noncompete agreements

03/20/2023
The ostensible purpose of an agreement not to compete is to prevent employees from jumping ship and taking proprietary information with them when they go to work for a competitor. But two other kinds of agreements can often accomplish that objective: nondisclosure agreements and confidentiality agreements.