In a recent ruling, The Louisiana Court of Appeal, First Circuit recently ruled that an employee non-solicit/no-poaching agreement is not subject to the Louisiana non-compete statute but, nevertheless, to be valid, must have a temporal limitation that is reasonable in scope to be enforceable. Because the agreement at issue was open-ended with no temporal limitation, … Continue Reading
On August 20, 2024, Judge Ada Brown of the US District Court for the Northern District of Texas set aside the Federal Trade Commission’s rule that effectively prohibited the use of non-compete agreements. Interpreting the Administrative Procedure Act, which provides for judicial review of the actions of federal agencies like the FTC, the court found … Continue Reading
As previously reported, the US District Court for the Northern District of Texas issued an injunction prohibiting the Federal Trade Commission (FTC) from enforcing its non-compete ban, which is set to take effect on September 4. That ruling, however, was limited to the plaintiffs in that case. Similarly, the US District Court for the Eastern … Continue Reading
As previously reported, the consolidated lawsuits challenging the Federal Trade Commission’s (FTC) non-compete ban sought a preliminary injunction and a stay until litigation is resolved concerning the FTC’s non-compete ban. On July 3, 2024, a federal judge in the US District Court for the Northern District of Texas decided that a preliminary injunction was appropriate … Continue Reading
The Louisiana Legislature unanimously passed Act No. 273. Governor Jeff Landry signed the act into law on May 28, 2024 and the act becomes effective on January 1, 2025. Read our previous post, The LA Senate Passes Restrictions on Non-Competes for Primary Care Physicians; SB 165 Now Moves to the House of Representative for a … Continue Reading
On April 23, 2024, the Federal Trade Commission (FTC) issued its Final Non-Compete Agreement Rule (Final Rule), banning non-compete agreements between employers and their workers. The Final Rule will go into effect 120 days after being published in the Federal Register. This Final Rule will impact most US businesses, specifically those that utilize non-compete agreements to protect … Continue Reading
Joe Lavigne, a partner in Jones Walker LLP’s Labor & Employment Practice Group and founding member of Jones Walker’s Trade Secret Insider blog, was quoted in the TechTarget article “Election might decide fate of FTC noncompetes ban” on April 26, 2024. In the article, Joe discusses how the Federal Trade Commission’s ban on noncompete agreements affects employers and how … Continue Reading
The Federal Trade Commission voted 3-2 today to ban noncompete agreements between employers and employees. A full analysis of the final rule will be forthcoming, but key takeaways are: We look forward to bringing you more information about this groundbreaking final rule in the coming days. If you have questions on how this rule affects you … Continue Reading
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 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
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
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
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
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
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
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
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
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
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
On January 11, 2021, the mayor of the District of Columbia signed an Act prohibiting non-competition provisions in employment agreements entered into after the date of passage. While under the peculiar rules of the District of Columbia, Congress has a 30-day window to disapprove the Act, it appears likely that this Act will pass. The … Continue Reading
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
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
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
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