Key Takeaways:
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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
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
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
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
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
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:
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
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
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
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
