On May 30, 2023, Jennifer Abruzzo, the General Counsel for the National Labor Relations Board (NLRB), issued a memorandum declaring that non-compete agreements for non-supervisory employees violate the National Labor Relations Act. The memo explains that having a non-compete chills employees’ Section 7 rights when it comes to demanding better wages. The theory goes that employees cannot threaten to resign for better conditions because they have nowhere to go. Non-compete agreements also prohibit employees from seeking better working conditions with competitors and/or soliciting coworkers to leave with them for a local competitor.
Federal Appellate Court Vacates Order Denying Injunction in Biotechnology Trade Secret Dispute
The United States Court of Appeals for the Fifth Circuit in New Orleans recently vacated an order from a Texas-based district court denying a preliminary injunction to Direct Biologics, LLC (“Direct Biologics”). The court ruled that Direct Biologics had presented sufficient evidence that its trade secret information in the hands of its former employee and business competitor, Vivex Biologics, Inc. (“Vivex”), could constitute irreparable harm if Direct Biologics could present evidence Vivex and the former employee would likely use that information during the pendency of the lawsuit. The court’s opinion offers guidance for employers facing confidential data breaches and hiring employees from competing firms.
FTC Hosts Public Forum on Proposed Rule Banning Non-Compete Clauses
On February 16, the Federal Trade Commission (FTC) hosted a public forum to examine its proposed rule to ban non-compete agreements. Non-compete clauses serve to protect a business’s trade secrets and confidential information, which makes such a ban a concern for many businesses. The comment period for this proposed rule ends on March 20, so businesses should consider voicing their concerns during this time. This article summarizes the remarks made during the public forum by the FTC, a panel discussion, and comments from the public.
FTC To Host Virtual Public Forum
As we recently reported, in January 2023, the Federal Trade Commission (FTC) announced a proposed nationwide ban on non-compete clauses. The proposed rule would restrict employers from enforcing all existing and future non-compete agreements with their employees.
The FTC announced that it will host a free and open public forum on Thursday, February 16, 2023, from 12 p.m. to 3 p.m. EST. This forum will examine the proposed rule and provide workers and business owners with an opportunity to ask questions, express concerns, and share their past experiences with non-competes.
Attendees may register to speak at the forum on the FTC’s website. Registration to speak is on a first come, first served basis. Details about the forum and registration may be found here.
Comment Period for FTC’s Proposed Ban on Non-Compete Agreements Ends March 20 — The Time to Act Is Now!
On January 5, 2023, the Federal Trade Commission (FTC) issued a Notice of Proposed Rulemaking essentially banning non-compete clauses and categorizing them as unfair methods of competition. Non-compete clauses serve to protect a business’s trade secrets and other confidential information, which makes the adoption of such a rule a major concern for all US businesses. Our previous article addressed the legal challenges the FTC will likely face in light of the proposed ban on non-compete agreements. The comment period for this proposed rule ends on March 20, and businesses should consider voicing their concerns before the deadline. This article summarizes some of the major ways that the rule could affect businesses, as well as what issues could be raised during the comment period.
Legal Challenges the FTC Faces in Light of Proposed Ban on Non-Compete Agreements
On January 5, 2023, the Federal Trade Commission (FTC) issued a Notice of Proposed Rulemaking essentially banning non-compete clauses and categorizing them as unfair methods of competition. Non-compete clauses serve to protect a business’s trade secrets and other confidential information, which makes the adoption of such a rule concerning for all US businesses. Our previous article addressed how the FTC’s proposed ban on non-compete agreements could affect your business. This article summarizes some of the legal challenges the proposed rule will likely face.
How the FTC’s Proposed Ban on Non-Compete Agreements Could Affect Your Business
On January 5, 2023 the Federal Trade Commission released a Notice of Proposed Rule that would essentially ban all non-compete agreements between employers and employees. If the proposed rule or a similar rule is adopted by the FTC, it would have a profound impact on all US businesses and particularly those businesses that utilize non-compete agreements to protect their trade secrets and confidential business information. This article provides a summary of the proposed rule and actions you can take to have your opinion heard regarding the likely impacts of the proposed rule on your business.
Jones Walker LLP Releases Results of Third Cybersecurity Survey
Jones Walker LLP recently released the findings of our 2022 Ports and Terminals Cybersecurity Survey. Since 2018, we have surveyed key US infrastructure industries including the greater maritime industry in 2018 and the midstream oil and gas industry in 2020. The economic effects of the COVID-19 pandemic, geopolitical events, supply chain disruptions, labor shortages, rising inflation, and unstable energy prices make cybersecurity a growing concern for owners and operators of US ports and maritime terminals.
Proper Cybersecurity Training is Key to Cybersecurity Resilience
Andrew R. Lee, a partner in the Litigation Practice Group and co-chair of the firm’s privacy & data security team, and James Kearns, special counsel in the Maritime Practice Group, authored the article “OP-ED: Cybersecurity training is key to cybersecurity resiliency” published by Marine Log on July 19.
Andy and Jim remind industry stakeholders to devote sufficient time and other resources to refreshing the cybersecurity training of their employees, at least annually and preferably more often, in order to detect and thwart cyber-attacks.
24 Hours: Government Likely to Require Notice of Ransomware Payments from Banks, Other Key Businesses
Most banks and their service providers are familiar with the final rule governing notice for “notification incidents” and “cyber security incidents.” With compliance due by May 1, 2022, the rule establishes standards and deadlines for service providers to notify banks of such incidents and for banks to notify their primary federal regulator “as soon as possible and no later than 36 hours” after the bank “determines” that a notification incident has occurred. (For more, see this summary.) However, a recently enacted law requiring new rulemaking by the Cybersecurity and Infrastructure Security Agency (or CISA for short) within the Department of Homeland Security could upend a key compromise made during the finalization of the banking rules.