Death by a thousand cuts, new restrictive covenant laws in Louisiana and Minnesota
Fair Competition Law
by Russell Beck
1w ago
The march toward banning the use of noncompetes and other restrictive covenants by a thousand cuts continues… Recall that earlier this year, Washington expanded its noncompete law to add certain nonsolicits and no-service agreements to the definition of “noncompetition covenant” and to tighten its procedural requirements (effective June 6) and Maryland added limitations and exemptions for physicians, veterinarians, and vet techs (some parts became effective June 1 and others will become effective July 1, 2025). Well, last month (May 2024), Louisiana and Minnesota took turns limiting different ..read more
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ATS Tree Services, FTC noncompete lawsuit branches out
Fair Competition Law
by Russell Beck
2w ago
With all of the attention focused on the Ryan, LLC’s Texas lawsuit challenging the FTC’s noncompete rule and the now-stayed U.S. Chamber of Commerce’s lawsuit, the slow progress of the lawsuit brought by ATS Tree Services, LLC has gone largely unnoticed. Here’s a quick update: On May 14 (surprisingly late in the game), ATS Tree Services moved to stay the effective date of the ban and not enjoin its operation. Following the same approach as Judge Ada Brown in the Ryan case, Judge Kelley B. Hodge in the Eastern District of Pennsylvania issued a scheduling order noting that she may not even ..read more
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Five amicus briefs filed in FTC noncompete litigation
Fair Competition Law
by Russell Beck
2w ago
So far, five groups of amici curie (meaning “friends of the court”) have filed amicus briefs (or motions to file amicus briefs) in the Ryan, LLC v. FTC noncompete rule case. Each of the five amicus briefs supports Ryan’s challenge the FTC’s noncompete rule. Who are the amici? The five groups of amici are as follows: National Retail Federation, National Federation of Independent Business Small Business Legal Center, Inc., International Franchise Association, Associated Builders and Contractors, Inc., American Hotel & Lodging Association, National Association of Wholesaler-Distributors, In ..read more
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50-State Noncompete Chart Updated (May 25, 2024)
Fair Competition Law
by Russell Beck
2w ago
New 50-state noncompete chart updated for 2024 We just updated our 50-State Noncompete Chart again. This update addresses recent developments in Georgia, Maryland, and Washington. We anticipate possible changes in Colorado (giving the attorney general limited noncompete rule-making authority) and Louisiana (physician limitations ); both bills are on the respective governor’s desk. Our chart — which was the first of its kind and has been updated regularly since 2010 — has now been updated to reflect this case and is, accordingly, fully up to date through May 25, 2024. We will continue to u ..read more
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NLRB settles with Juvly Aesthetics for use of noncompetes
Fair Competition Law
by Russell Beck
3w ago
While all eyes have been fixed on the FTC’s rule to ban noncompetes, the NLRB quietly settled the unfair labor practice case it brought against Harper Holdings, LLC d/b/a Juvly Aesthetics (a spa providing cosmetic services) for using noncompetes and other allegedly unlawful agreements. Quick background Recall that on May 30, 2023, the NLRB General Counsel issued a memo asserting her view that noncompetes (and certain other restrictive covenants) are an unfair labor practice under the National Labor Relations Act (NLRA). Also recall that on September 1, 2023, the NLRB (Region 9, which is in Cin ..read more
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U.S. Chamber joins Ryan, LLC challenge to FTC noncompete ban
Fair Competition Law
by Russell Beck
1M ago
As you will recall, the court in the U.S. Chamber of Commerce’s case challenging the FTC’s noncompete ban stayed that case to let the first-filed case, Ryan LLC v. FTC, proceed. Shortly afterward, on May 7, the court in the Ryan case issued a briefing schedule, stating that its decision would be issued on July 3. Given that ruling, on May 8, the U.S. Chamber of Commerce and the other plaintiffs in that case (Business Roundtable, Texas Association of Business, Longview Chamber of Commerce) filed an unopposed motion to intervene in the Ryan case. Yesterday (May 9), the court issued an order gran ..read more
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Fate of FTC noncompete rule will be decided before July 4
Fair Competition Law
by Russell Beck
1M ago
The case brought by Ryan LLC challenging the FTC’s rule is moving quickly — but not as quickly as Ryan would like. The good news is that we will know the fate of the FTC’s noncompete rule shortly! On May 1, Ryan filed a Motion for Stay of Effective Date and Preliminary Injunction and simultaneously sought expedited briefing. Naturally, the Federal Trade Commission opposed. Yesterday, May 7, the court denied Ryan’s motion and set a briefing schedule in accordance with the Northern District of Texas’ Civil Local Rules. Specifically, the court ordered the following schedule: May 22, 2024: FTC’s ..read more
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FTC Chair suggests broad exception for senior executives under noncompete ban
Fair Competition Law
by Russell Beck
1M ago
FTC Chair Lina Khan As you probably know, on April 23, 2024, the Federal Trade Commission issued a rule banning virtually all noncompetes. But the rule created some ambiguous exceptions, including for noncompetes with senior executives. That rule is currently being challenged in three lawsuits: Ryan, LLC v FTC, U.S. Chamber of Commerce v. FTC, and ATS Tree Service v. FTC. If the challenges are unsuccessful, the rule will go into effect on September 4, 2024. There are many questions about the scope of the rule, including how the exceptions work. “Senior Executives” The rule exempts noncompetes ..read more
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Maryland restricts healthcare provider noncompetes, bans veterinarian and vet tech noncompetes
Fair Competition Law
by Russell Beck
1M ago
On June 1, Maryland will restrict the use of noncompetes for physicians and other healthcare providers, while banning them entirely for veterinarians and vet techs. As you may recall, Maryland was one of the 31 states considering bills modifying noncompete laws. More specifically, Maryland was one of 17 states considering bills to ban or restrict noncompetes for healthcare providers and one of the three states considering banning veterinarian noncompetes. Well, on April 25, Maryland Governor Wes Moore signed a bill that adds new industry-specific exemptions. Here’s what you need to know… Exist ..read more
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U.S. Chamber of Commerce v. FTC stayed, injunction will be global
Fair Competition Law
by Russell Beck
1M ago
As you may recall, on April 30, the Federal Trade Commission moved to stay the litigation brought by the U.S. Chamber of Commerce seeking an order vacating the FTC’s rule banning noncompetes and an injunction precluding enforcement. Specifically, the FTC argued that the Court should stay the U.S. Chamber’s case because Ryan, LLC filed parallel litigation a day earlier, and that case should have priority as the first-filed action. The U.S. Chamber filed an opposition on May 2. Today (May 3), the Court granted the FTC’s request for a stay of the U.S. Chamber litigation. As a consequence of its r ..read more
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