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On August 20, 2024, a Texas federal Judge blocked the Federal Trade Commission (FTC) rule banning noncompete agreements in employment contracts. The Judge determined that the FTC exceeded its statutory authority in passing a rule banning noncompetes. The ban was supposed to go into effect on September 4, 2024. In the ruling, the Court said…
Read MoreLast week, a Pennsylvania Federal Judge refused to issue a temporary restraining order to block the Federal Trade Commission’s (FTC’s) ban on non-compete agreements. This was a very important ruling. All eyes are now on a Texas Federal Judge who has practically the same issue before her, and the Texas Federal Judge has allegedly indicated…
Read MoreOn April 23, 2024, the Federal Trade Commission (FTC) published its final rule regarding non-compete clauses. The final rule bans most non-compete clauses between employers and their workers. The effective date of the final rule is September 4, 2024. The final rule allows employers to maintain existing non-compete agreements with “senior executives” (those who make…
Read MoreOn April 23rd the FTC issued a final rule which for all practical purposes would ban noncompete agreements nationwide. Under the new rule, existing noncompete agreements for senior executives can remain in force, but employers are not allowed to enter into or enforce new noncompete agreements with senior executives. The final rule defines senior…
Read MoreEffective Date: President Biden signed it into law on December 7, 2022. What It Does: Renders unenforceable non-disclosure and non-disparagement provisions in employee/employer agreements. Type of Agreements: Related to allegation of sexual assault and/or sexual harassment and that are entered into “before the dispute arises.” “Before the Dispute Arises” Defined: Before a lawsuit is…
Read MoreOn August 13, 2021, Governor J.B. Pritzker signed into law major amendments to the Illinois Freedom to Work Act which will become effective January 1, 2022. What is covered: Employment agreements with non-compete and non-solicitation covenants signed after January 1, 2022. New Salary Requirements: Prohibits non-competes with employees earning less than $75,000 per year. Prohibits…
Read MoreWessels Sherman Attorney Alan Seneczko, managing shareholder of the Wisconsin office, recently won a huge decision in a claim against a former executive for breach of his duty of loyalty to the company (among other claims). The company, Storage Battery Systems, suspected its director of sales was using his position and the confidential information he…
Read MoreIn order to have non-compete agreements which have a chance of being found legally enforceable by an Illinois judge, Illinois employers must carefully figure out the scope of activities to be restricted by their proposed non-compete agreements. Employers relying on the protection of a non-compete agreement naturally want to protect the company’s legitimate business interests.…
Read MoreIllinois is a state where non-compete agreements can be enforceable if done with certain guiding concepts and wording. The following are the most common questions asked by Illinois clients who are considering the use of non-compete agreements: 1. Why does a non-compete agreement have to be “supported by consideration” even though both parties sign the…
Read MoreThe enforcement of non-compete agreements in Wisconsin is governed by the provisions of Wis. Stat. § 103.466, which sets forth five requirements that must be met in order for the restriction to be enforceable. Over the years, the courts have found that these restrictions applied not just to traditional non-compete agreements, but also to agreements…
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