Seyfarth Synopsis: In 2016, the Defend Trade Secret Act, 18 U.S.C. § 1836 (the “DTSA”), passed Congress and went into effect. At its heart, it effectively codified the Uniform Trade Secrets Act at the federal level, creating a federal cause of action. Prior to the enactment of the DTSA, a large body of federal common law
Continue Reading No Non-Compete? Maybe not a problem as PepsiCo appears to be alive and well.
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 Eron Reid, Jesse M. Coleman, and Katherine Perrelli
The FTC’s recently issued Final Rule banning non-competes for most workers prohibits an employer from (1) threatening to enforce a non-compete against a worker, (2) advising the worker that, due to a non-compete, they should not pursue a particular job opportunity, or (3) telling the worker that the worker
Continue Reading The FTC’s “Good Faith” Exception to the Non-Compete Ban: Pending Legal Challenges Are Not a Basis for Non-Compliance
By Jesse M. Coleman and Yumna Khan
Are nonprofit health care entities exempt from the Federal Trade Commission’s (FTC) Final Rule banning non-competes in worker agreements? The answer is not cut and dry. While the FTC’s authority generally stops at the doors of nonprofit entities, the FTC has warned in its Final Rule that it intends to vigorously enforce the
Continue Reading FTC Signals Its Intent To Pursue Nonprofit Health Care Entities With Its Non-Compete Ban Whenever Possible
By Jesse M. Coleman, Daniel P. Hart, and Eron Reid
On April 23, 2024, the Federal Trade Commission (FTC) voted in a 3 to 2 decision along party lines to adopt its Final Non-Compete Clause Rule (“Noncompete Rule”) banning post-employment non-compete clauses between employers and their workers. The Noncompete Rule is scheduled for publication in the Federal Register on
Continue Reading Analysis of FTC Non-Compete Ban Legal Challenges: Does the Ban Pass Constitutional Muster? (And Other Issues)
By Marcus Mintz, Jeremy Cohen, and James Yu
On November 30, 2023, Governor Kathy Hochul answered the long-awaited question of whether New York would join California, North Dakota, Oklahoma and, most recently Minnesota, as a state banning the use of non-compete agreements between employers and employees. While New York legislators passed a bill to do just that
Continue Reading New York Governor Hochul Rejects Wholesale Ban on Non-Compete Agreements
By Paul Whinder and Daniel P. Hart
Seyfarth Synopsis: At the State Opening of Parliament last week, the UK Government outlined its legislative agenda through the King’s Speech, an annual address where the ruling monarch, wearing the Imperial State Crown, reads a speech that has been prepared by the current Government outlining the Prime Minister’s priorities for the
Continue Reading UK Government’s Proposal to Reduce Non-Competes Not Included In King’s Speech
Seyfarth Synopsis: For employees looking to leave somewhere greener for somewhere warmer, California may now be climbing to the top of their list. On September 1, 2023, Governor Newsom signed legislation that extends California’s restrictions on non-compete agreements to contracts signed out of state, effective January 1, 2024. Specifically, SB 699 provides that any contract that is void
Continue Reading Heads Carolina, Tails California – Expanded Non-Compete Prohibitions Cross State Lines
By Kristina M. Launey, Scott P. Mallery, David Kim and Galen Sallomi
Seyfarth Synopsis: Now that the Legislature’s September 14, 2023 deadline to pass bills to the Governor has come and gone, we are providing an overview of which employment bills are before the Governor for consideration, including bills that impact non-compete agreements, FEHA protected categories, paid
Continue Reading Legislative Update: Nearing the End of the Road (for 2023)