FTC Proposes Rule Eliminating Non-Compete Agreements Nationwide

Key Takeaways:

  • The proposed rule bans non-compete agreements nationwide for virtually all workers.
  • Employers would be required to rescind all current non-compete agreements they have with workers.

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On January 5, 2023, the Federal Trade Commission (“FTC”) proposed a new rule banning non-compete agreements. The 218-page notice of proposed rulemaking details the FTC’s position on the value (or lack thereof) of non-competes,… More

President Biden Takes First Step to Limit Non-Compete Agreements Nationally

President Biden promised during his campaign that if elected he would take federal action against non-competition agreements. On July 9, 2021, Biden issued a broad executive order aimed at making good on that promise. He asked the Federal Trade Commission (FTC) to issue a rule either banning or limiting non-competition agreements. Such a rule, he said, will promote competition and raise wages, by removing barriers to job mobility.

Non-competition agreements are widely used in private industry,… More

First Circuit Affirms Injunction Enforcing Non-Solicitation Agreement Against Sales Director, Applies Delaware Choice Of Law Provision Against Massachusetts Resident

Last week, the First Circuit affirmed a preliminary injunction enforcing a one-year non-solicitation agreement against the Massachusetts-based former sales director of a California-based health care company that develops products to treat spinal disease. The sales director resigned from his position with the health care company to found and work for an exclusive distributor for the health care company. A few months later, the sales director dissolved his new company,… More

Federal Court Cites Enforcement Of Customer Non-Solicit Provision To Deny Enforcement Of Non-Compete Provision

Last week U.S. District Judge Zobel denied a road assistance service provider’s motion to stop its former vice president of sales from working for a competitor, citing the employer’s enforceable customer non-solicitation and confidentiality provisions as a reason not to enforce a broad non-compete provision.  The ruling on the preliminary injunction motion in Agero Administrative Service Corp. v. Campolo allowed the former employee to work for the competitor but prohibited him from soliciting certain customers of his former employer.… More

California Appellate Court Refuses to Enforce Employee Non-Solicitation Provision

In a decision that could affect Massachusetts companies with employees in California, a California appellate court voided a non-solicitation clause in former employees’ agreements.

It is well known that under California law, post-employment non-competition agreements are unenforceable, except in very limited circumstances. California courts have been slightly more forgiving of non-solicitation provisions, both as to employees and customers.  Employee non-solicitation provisions occasionally have been upheld when tested against a reasonableness standard.… More

A New Era of MA Noncompete Law Begins on Oct. 1

As previously reported, the new Massachusetts law governing non-competition agreements takes effect on Monday, October 1.  A comprehensive summary of the law is here.  The most significant takeaways are the following:

  • The law applies to post-employment noncompetes entered into on or after October 1, 2018 by Massachusetts workers and residents.
  • The law does not apply to other kinds of restrictions, including non-solicitation agreements. …
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SJC Refuses to Enforce Massachusetts Non-Compete on California Employee

On September 7, 2018, the Massachusetts Supreme Judicial Court refused to enforce a non-competition and non-solicitation agreement between a Massachusetts company and its California-based former employee who joined the employer’s competitor in California. The SJC reached this decision, in Oxford Global Resources v. Hernandez, even though the agreement was expressly governed by Massachusetts law and designated Massachusetts as the forum for all disputes concerning the agreement.… More

Watch – The New Massachusetts Noncompete Law: What You Need to Know

After years of debate, the Massachusetts Legislature recently passed a comprehensive noncompete reform law, and Governor Baker signed the bill on August 10, 2018. The new law overhauls existing law and imposes new prohibitions and requirements for noncompetes signed by Massachusetts workers as of October 1, 2018. Every Massachusetts employer that uses noncompetes will need to change its agreements and practices.

Partners Jonathan Keselenko and Michael Rosen present a webinar discussing what employers need to know about the new law to ensure compliance.… More

Governor Baker Signs Noncompete Bill

As expected, yesterday (August 10, 2018) Governor Baker signed the new Massachusetts noncompete bill into law.   A summary of the law is here.  Although some industry groups were urging the governor to reject the bill or send it back to the legislature to correct flaws and ambiguities, he signed it without changes.

The law takes effect on October 1 and will apply to non-competition agreements entered into on and after that date. … More

MA Legislature Passes Noncompete Reform Bill

After years of debate, the Massachusetts legislature late last night passed a comprehensive noncompete reform law.  If, as expected, Governor Baker signs the bill in the next 10 days, it will take effect on October 1, 2018 and apply to agreements executed after that date.  (It does not apply retroactively to existing agreements.)

As the summary below makes clear, the law represents a compromise between those who believe noncompetes should be abolished because they are fundamentally unfair to employees and bad for the Massachusetts economy,… More