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Showing 12 posts in Non-Compete Agreement.

FTC Ban on Noncompetes Struck Down

By Cynthia L. Effinger, Claire M. Vujanovic on August 29, 2024
Posted In FTC, Non-Compete Agreement

A Texas Court struck down the FTC's Rule banning noncompete agreements set to take effect on September 4th, 2024. The Court ruled that the FTC had overstepped its authority in implementing the Rule and further held that the Rule was overly broad because it provided no reasonable explanation for banning virtually all noncompete agreements.  More >

Tags: FTC, Non-compete agreements

It's Official: FTC Issues Final Rule Banning Non-Competes

By Cynthia L. Effinger, Claire M. Vujanovic on April 25, 2024
Posted In Federal Trade Commission, FTC, Non-Compete Agreement

In a stunning move the same day the Department of Labor issued a rule raising the overtime salary threshold, the Federal Trade Commission issued its own long-gestating rule banning noncompete clauses nationwide. Employers should begin reviewing their contracts immediately to understand how this sweeping change will affect their workforce. More >

Tags: contract terms, employment agreement, Employment Contract, employment law, employment law for employers, FTC, Non-compete agreements

New NLRB Memo Says Non-Compete Agreements Violate NLRA

By Claire M. Vujanovic on May 31, 2023
Posted In Employee Agreement, National Labor Relations Act (NLRA), National Labor Relations Board (NLRB), Non-Compete Agreement

Following the Federal Trade Commission’s (FTC) January proposal to ban non-compete agreements, the National Labor Relations Board (NLRB) has issued a memo stating that non-compete agreements, except in very specific circumstances, violate the National Labor Relations Act. Any employer who uses non-compete agreements, or other agreements that functionally serve as non-competes, should be bracing for impact. More >

Tags: employment agreement, employment law for employers, National Labor Relations Act, NLRA, NLRB, Non-compete agreements, Non-disclosure agreements

FTC Moves to Ban Non-Competes

By Kevin L. Chlarson on January 13, 2023
Posted In Employee Contracts, Employment Law, Federal Trade Commission, Non-Compete Agreement

On January 5th, 2023, the Federal Trade Commission released a proposal for a new rule that would ban almost all forms of non-compete agreements—and employers should be warned. The rule, as proposed, would cause major administrative headaches for employers—as well as eliminating a key tool for protecting trade secrets, client bases, and more. More >

Tags: contract terms, employment agreement, Employment Contract, employment law, employment law for employers, independent contractor, Independent Contractors, Non-compete agreements

Kentucky Supreme Court Decision Drastically Impacts All Non-Compete Agreements

By Cynthia L. Effinger on November 20, 2014
Posted In Creech v. Brown, Employee Benefits, Employee Contracts, Employee Handbook, Employee Personnel Files, Employment Law, Hiring and Firing, Human Resource Department, Non-Compete Agreement

Earlier this year, the Kentucky Supreme Court reversed the Kentucky Court of Appeals’ holding in Creech, Inc. v. Brown, and held, in a landmark decision, that continued employment, standing alone, is no longer sufficient consideration to justify or support enforcement of a non-compete agreement. This reverses prior precedent that employer-employee agreements may be executed in exchange for merely retaining one’s job. While the case has an intricate and complex set of facts, this article focuses on the consideration requirement only, as the Kentucky Supreme Court chose not to address any other issues. More >

Getting “Sandwiched” Into a Non-Compete Agreement

November 6, 2014
Posted In Employee Contracts, Employee Forms, Employee Handbook, Employee Training, Employment Law, Hiring and Firing, Human Resource Department, Job Description, Job Requirement, Non-Compete Agreement

The Huffington Post recently reported that Jimmy John’s, the national sandwich chain, requires its workers to sign strict non-compete agreements. The agreement was disclosed as part of a lawsuit by employees, and many in the employment industry are wondering if such an agreement is really necessary for the company’s minimum wage workers. These agreements are usually saved for high-level executives or those subject to proprietary information – not the guy behind the counter making a sub. More >

Tags: employment agreement, employment law, Jimmy John, Non-compete agreements

An Important New Decision Affects Non-Compete Agreements in Kentucky

June 20, 2014
Posted In Creech v. Brown, Employee Benefits, Employee Contracts, Employment Law, Hiring and Firing, Litigation, Non-Compete Agreement

The Kentucky Supreme Court recently reversed the Kentucky Court of Appeals’ holding in Creech, Inc. v. Brown, and declared that continued employment, standing alone, is no longer sufficient consideration to justify or support enforcement of a non-competition agreement. In the course of reaching its decision, the Court clarified prior case law dealing with the issue of whether non-competition agreements may be executed in exchange for merely retaining one’s job. While the case has an intricate and complex set of facts, this post focuses on the consideration requirement only. More >

Complete Your Non-Compete: Helpful Drafting Tips, cont.

July 31, 2013
Posted In Employee Contracts, Employee Personnel Files, Employment Law, Human Resource Department, Non-Compete Agreement

Earlier this week, I discussed the importance of tailoring non-compete agreements to ensure enforceability and provided some factors to consider when drafting. Below are four more factors that should help you create a strong non-compete agreement. More >

Complete Your Non-Compete: Helpful Drafting Tips

July 29, 2013
Posted In Employee Contracts, Employment Law, Litigation, Non-Compete Agreement

Perhaps you consider your non-compete agreement just one form in a stack of many? When it is time to use it there is not much to the process: you retrieve it from the HR office, briefly discuss it with the employee, and he willingly signs it. But such a practice is a perilous one because non-compete agreements are not meant to be “one-size-fits-all.” Rather, they should be thoughtfully tweaked to each specific employee and situation. By relying on boilerplate language and fill-in-the-blank forms, you are risking the chance that a court will find your agreement unenforceable. More >

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