Category Archives: Non-Compete

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The LA Senate Passes Restrictions on Non-Competes for Primary Care Physicians; SB 165 Now Moves to the House of Representative for a Vote

Last month, we wrote about the anticipated impact of the Federal Trade Commission’s expected rule on the healthcare industry. In that post, we discussed the impacts many argued non-competes would have on the healthcare space. Specifically, while some physician groups argue the prevalence of non-competes in the healthcare industry contributes to physician shortages, other industry … Continue Reading

The Expected Impact of the FTC’s Expected Rule on Healthcare Industry

The Proposed Rule Last year, the Federal Trade Commission (FTC) issued a proposed rule to ban most noncompete agreements nationwide. With very limited exceptions, the sweeping rule forbids any contractual term between an employer and a worker that has the effect of preventing the worker from accepting employment with a competitor, or operating a competitive … Continue Reading

Mediate Early and Sometimes Often

Trade secret, breach of fiduciary duty, unfair trade practices, breach of restrictive covenants and retention agreements, and the many state and federal claims that come with departing employees or groups of employees often scream out for mediation. As our blog has demonstrated time and again, aggressive, and immediate action is necessary in these situations and typically … Continue Reading

NLRB Issues Memo on Non-competes Violating NLRA

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 … Continue Reading

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 April 19, so … Continue Reading

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 … Continue Reading

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 … Continue Reading

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 … Continue Reading

How the FTC’s Proposed Ban on Non-Compete Agreements Could Affect Your Business

Closeup of male hand signing legal or insurance document on black desk with reflection.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 … Continue Reading

A Broken Marriage: Bridal Designer Cannot Compete but Regains Control of Social Media Accounts

In the case JLM Couture Inc. v. Gutman, in the U.S. Court of Appeals for the Second Circuit, a bridal designer signed an employment agreement that barred her from competing with her employer – JLM Couture Inc. (JLM) – following her employment. The designer also agreed to give certain rights to JLM related to a bridal … Continue Reading

Kee Published in New Orleans CityBusiness on Non-Competition Agreements Under Louisiana Law

P.J. Kee, a partner in the Labor & Employment Practice Group and a member of the trade secrets and fair competition team, authored the article “Do’s and Don’ts for Non-Competition Agreements Under Louisiana Law” featured in New Orleans CityBusiness. P.J. provides an outline of La. Rev. Stat. § 23:921, and the courts interpreting it, to better … Continue Reading

Tips to Remember for Protecting Trade Secrets and Confidential Information

We hope you and your employees had a festive holiday season and happy New Year!  It is always helpful to review your company policies and procedures on an annual basis, and policies and procedures on protection of trade secrets and confidential information are no different.  Below are some tips to remember and questions to consider … Continue Reading

Defining Business in Louisiana Non-Competition Agreements is Essential, Appeals Court Holds

A Louisiana appeals court in New Orleans recently overturned a trial court’s refusal to enforce a non-competition agreement. The appellate court’s decision instructs employers on the need to define the scope of their businesses for an enforceable agreement. Environmental Safety & Health Consulting Services, Inc. v. Fowler, 2019-CA-813 (La. 4 Cir. 3/11/20).… Continue Reading

Competing Views on Non-Compete Agreements: Changes May be Coming Across the Nation to Employers’ and Business Purchasers’ Ability to Limit Competition

Employers often place limitations on their employees’ ability to compete following the termination of the employment relationship. The justification for restraints on trade is that employers have a protectable interest in their customer and vendor relationships, the goodwill associated with their brand, and their confidential information and trade secrets. Purchasers of businesses likewise often place … Continue Reading

Louisiana Appellate Court: Time Limit on Non-Compete Runs From Termination, Not Judgement.

An employee’s termination date – that is, the date the employee quits or is fired – may be critical to determining when his non-competition obligations expire. Under Louisiana law, a non-competition agreement may not “exceed a period of two years from termination of employment.” La. R.S. 23:921(C). This rule was recently applied by the Louisiana … Continue Reading

A Recent Trend In Louisiana Non-Compete Cases?

A trend may be developing in favor of non-compete agreements in Louisiana. Two recent appellate court decisions enforced their terms, even though they contained either overly broad or ambiguous language. The first is from the Louisiana Supreme Court, Causin, L.L.C. v. Pace Safety Consultants, LLC, which we have previously discussed. The second is from the U.S. … Continue Reading

Louisiana Supreme Court Allows Employer-Friendly Decision in Non-Compete Case to Stand

Drafting an enforceable (and meaningful) non-compete provision in an employment agreement can be difficult. Many states, like Louisiana, recognize that non-compete provisions in employment agreements raise a serious public policy concern. In Louisiana, this public policy is set forth in La. Rev. Stat. 23:921. It requires non-compete provisions to set forth specific parishes or municipalities in … Continue Reading

Louisiana Court Treats Inevitable Disclosure Provision as Non-Compete Clause Subject to Geographic Restrictions

May an employer enforce a contract provision that forbids an employee to leave and take another job that would require him to use or reveal the employer’s confidential information? In Louisiana, maybe not, unless the agreement complies with Louisiana’s non-compete statute, La. Rev. Stat. § 23:921. In O’Sullivan v. Sunil Gupta, M.D., LLC, 2017 WL … Continue Reading

Time To Review Your Non-Competes

Companies with employees across multiple states face an administrative challenge. How do they ensure that their non-compete programs remain up to date with the various states law requirements for enforcement? Four states have recently passed legislation that reinforces the importance of addressing this question. The highlights below from the changing non-compete landscape should prompt companies to review their … Continue Reading

Tennessee Federal Court Refuses To Apply Inevitable Disclosure Doctrine

Williams-Sonoma is embroiled in a contentious trade secret theft case with its former executive and direct competitor. On June 18, 2015, a federal district court in Tennessee granted a preliminary injunction motion to enjoin Williams-Sonoma’s former vice president and direct competitor from using confidential business information, soliciting Williams-Sonoma employees, and destroying electronic evidence. But the federal court refused to give Williams-Sonoma … Continue Reading

Federal Court Invalidates Tennessee Choice-of-Law Clause in Louisiana Employee’s Non-Compete

The federal district for the Western District of Louisiana added to the growing list of decisions that have applied Louisiana’s non-compete statute to invalidate  choice-of-law or forum-selection clauses. These decisions have struck down clauses that, on their faces, would have required Louisiana employees of non-Louisiana employers to litigate under the law or in the courts of … Continue Reading

Update: Comfortable With Your Non-Compete?

We previously analyzed a Pennsylvania appellate court decision, which held that a non-compete agreement was unenforceable for lack of consideration. The case, Socko v. Mid-Atlantic Systems of CPA, Inc., is now before the Pennsylvania Supreme Court. The Court must decide whether Pennsylvania law allows parties to waive the consideration requirement for non-competes through an express agreement. … Continue Reading

“Professional” Distinction: A New Approach To Bans On Non-Competes?

A recent Florida appellate court decision may alter long-standing prohibitions against non-compete agreements for certain professionals. In AmSurg New Port Richey FL Inc. v. Vangara, the court upheld a non-compete, finding that it prohibited a physician from operating a rival business—but not from practicing medicine. This was the pivotal distinction for saving the non-compete, and other state courts could … Continue Reading
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