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On January 5, 2023, the Federal Trade Commission (“FTC”) issued a notice of proposed rulemaking (“NPRM”) that would “provide that it is an unfair method of competition – and therefore a violation of Section 5 [of the FTC Act] – for an employer to enter into or attempt to enter into a non-compete clause with a worker; [or to] maintain with a worker a non-compete clause . . .”  If this rule becomes final, it would effectively prohibit employers from entering into non-compete agreements—as broadly defined by the proposed rule—with their workers.
Continue Reading The Federal Trade Commission Seeks to Ban Non-Compete Clauses

On December 7, 2022, President Joe Biden signed the Speak Out Act (the “Act”), which limits the enforceability of pre-dispute non-disclosure and non-disparagement clauses covering sexual assault and sexual harassment disputes. The bipartisan Act was previously passed by the Senate and the House of Representatives by an overwhelming majority. …
Continue Reading Speak Out Act Restricts Use of Non-Disclosure and Non-Disparagement Provisions

Last month, Washington, D.C. Mayor Muriel Bowser signed the Ban On Non-Compete Agreements Amendment Act of 2020, which becomes effective next week.  This law is a statutory ban on non-compete agreements that has the strength of similar bans in California, North Dakota, and Oklahoma. …
Continue Reading Washington, D.C. Passes One of the Most Robust Prohibitions on Non-Competes in the Country

Restrictive covenants and non-compete agreements are increasingly under attack, this time by the Federal Trade Commission (FTC). Companies rely on these restrictions to protect investment in intellectual property, technology and employees. On January 9, the FTC suggested that employee freedom of mobility trumps all of these legitimate business reasons companies use restrictive covenants and non-compete agreements.
Continue Reading FTC Commissioners Advocate Restrictions on Non-Compete Agreements; Seek Comments on Potential Rulemaking

On December 6, 2019, a coalition of both national and state business organizations and trade associations filed a Complaint in the U.S. District Court for the Eastern District of California.  The lawsuit seeks both a preliminary and permanent injunction against implementation and enforcement of the recently enacted California law that makes it unlawful for California employers to require employees to sign arbitration agreements, under certain circumstances.
Continue Reading Injunction Sought to Stop California’s Anti-Arbitration Law

Earlier this year, we wrote about a proposed bill in California, AB 51, which would prevent employers from requiring their employees to bring all employment-related claims, including discrimination, harassment, retaliation, and wage and hour claims, in arbitration instead of state or federal court.  Earlier this month, Governor Newsom signed AB 51 into law.
Continue Reading California’s Anti-Arbitration Bill Gets Signed Into Law

In recent years, federal and state law enforcement authorities have subjected “no-poach” agreements to increased scrutiny. Recent enforcement actions demonstrate the risk of criminal penalties and civil damages for using such agreements. In this video, Hunton Andrews Kurth partners Emily Burkhardt Vicente and Torsten Kracht discuss recent developments concerning the use of “no-poach” agreements, and…

California has long been considered one of the most – if not the most – protective states of employee rights.  This continues to ring true, as the legislature has proposed another law aimed at prohibiting employers from requiring employees to sign mandatory arbitration agreements as a condition of employment.   In essence, Assembly Bill 51 (AB 51), would prevent employers from requiring their employees to bring all employment related claims, including discrimination, harassment, retaliation, and wage and hour claims, in arbitration instead of state or federal court.
Continue Reading California Legislators Take Another Stab At Preventing Employment Arbitration Agreements

We have reported on several Board decisions issued by a new Republican majority in the final days of 2017, but questions remain as to what issues the Board will address next to scale back on Obama-era precedent.  In recent weeks, Republican Board Members have provided some hints in a pair of footnotes in two unpublished decisions.  …
Continue Reading NLRB Members Drop Hints in Footnotes Regarding Potential Issues the Board will Revisit