By Eron Reid and Jesse M. Coleman
On October 4, 2024, Plaintiff ATS Tree Services, LLC (“ATS”) voluntarily dismissed its claims against the FTC challenging the agency’s Non-Compete Rule. See ATS Tree Services, LLC v. Fed. Trade Comm’n, et al., No. 2:24-CV-01743-KBH (E.D. Pa. July 23, 2024). The dismissal ends the case before a decision on the merits, preventing
Continue Reading Pennsylvania Plaintiff Drops Challenge to FTC Non-Compete Rule
By Marc Fosse
Seyfarth Synopsis: The federal district court for the Northern District of Texas has issued an order in the Ryan case staying the effective date on a nationwide basis the Federal Trade Commission (FTC) Rules banning noncompete agreements (the “Rule”), as well as enforcement of the Rule. However, legislatures and agencies at the federal and state level continue
Continue Reading Noncompete Agreements – Employer Options and Strategies to Reduce Risks
By Dawn Mertineit, Marcus Mintz, Jesse M. Coleman, Michael Wexler, Katherine Perrelli, and Robyn Marsh
Seyfarth Synopsis: Just over a month ago, employers throughout the United States breathed a sigh of relief after Judge Ada Brown in the Northern District of Texas issued a summary judgment ruling in the Ryan v. FTC litigation setting
Continue Reading The Saga’s Not Over – FTC Appeals Florida Court’s Stay of Non-Compete Rule
By Michael Tamvakologos and Ian Neil, SC
Seyfarth Synopsis: 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 productivity, reduce the cost of living and/or lift wages. Non-compete clauses would be part of this
Continue Reading Why the Negative Impact of Non-Competes is Overstated
By Cat Johns and Dawn Mertineit
Seyfarth Synopsis: 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
Continue Reading DraftKings Dispute with Former Executive Presents Battle Over Choice of Law for Non-Compete Agreements
By Jesse M. Coleman, Michael Wexler, and Robert Terzoli
Seyfarth Synopsis: 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
Continue Reading NLRB’s Non-Compete Power Grab – Can Employers Avoid NLRB’s Oversight?
By Jesse M. Coleman, Eron Reid, Robert B. Milligan, and Michael Wexler
Seyfarth Synopsis: On May 3, 2024, the United States District Court for the Eastern District of Texas entered an Order staying the proceedings in Chamber of Commerce v. FTC by granting the FTC’s motion to apply the first-to-file doctrine, in which a district court
Continue Reading FTC Non-Compete Ban Lawsuits Update: Eastern District of Texas Stays Chamber of Commerce Suit in Favor of Ryan LLC as First-to-File
By Robert B. Milligan, Katherine Perrelli, Michael Wexler, Kevin Mahoney, Jesse M. Coleman , and Dawn Mertineit
Seyfarth Synopsis: This week, the FTC voted to adopt a proposed final rule banning most non-competes with workers in the United States. The final rule provides that it is an unfair method of competition—and therefore a violation
Continue Reading FTC Approves Rule Banning Non-Competes With Workers
By Jesse M. Coleman and Eron Reid
Seyfarth Synopsis: On March 21, 2024, the Federal Deposit Insurance Corporation (“FDIC”) approved a Federal Register notice seeking public comment on its proposal to revise its current Statement of Policy on Bank Merger Transactions. Among the proposed revisions, the agency’s proposal will prohibit non-compete agreements in bank mergers in which the selling bank is
Continue Reading FDIC Updates Bank Merger Guidance to Include Non-Compete Ban
As we reported at the end of February, Maine’s House of Representatives voted for a non-compete ban that would have invalidated virtually all such agreements in the state. In March, the Senate passed the bill, sending it to Governor Mills’s desk. Despite what looked like another victory for opponents of non-competes, Governor Mills vetoed the proposed
Continue Reading Update: Maine Governor Vetoes Non-Compete Ban