HRMorning’s Post

The FTC voted to ban noncompete agreements yesterday, and lawsuits challenging the rule are already starting. Rule or no rule, the truth is that these agreements have become increasingly hard to enforce. Courts are reluctant to enforce them. And they are often poorly drafted and well beyond what is necessary to protect a business interest. For the ones that employers ask me to weigh in on in my practice, I estimate 1 out of 10 stands a chance of withstanding judicial scrutiny. If the new FTC rule holds, though, it's going to be even more important that employers take a good hard look at their employment contracts. There can be other ways to help protect the company's confidential information and customer base. All will not be lost with the new rule, but companies will need to do the work to shore up their agreements. #noncompetes #employmentlaw https://lnkd.in/eJd8g9Xm

Employers with California employees: Governor Newsom signed a new law that becomes effective January 1, 2024, further restricting enforcement of employee post-employment restrictions in California. The new law appears to be aimed at out of state employers who seek to have California employees sign agreements containing post-employment obligations. Under the new law: - a contract that is void under California law is unenforceable regardless of where and when the contract was signed - an employer or former employer cannot attempt to enforce a contract that is void regardless of whether the contract was signed and the employment was maintained outside of California - an employer cannot enter into a contract with an employee or prospective employee that includes a provision that is void under the law - an employer who violates that law commits a civil violation - an employee, former employee, or prospective employee is authorized to bring an action to enforce that law for injunctive relief or the recovery of actual damages, or both, and - a prevailing employee, former employee, or prospective employee can recover attorney’s fees and costs For the text of the bill, see here: https://lnkd.in/e5viAd4J #restrictivecovenants #california #DGPERKS

On April 23, 2024, the Federal Trade Commission, which is the federal agency charged with protecting consumers from anti-competitive, deceptive, and unfair business practices, issued a Final Non-Compete Clause Rule (Final Rule). We examine the Final Rule’s requirements for employers, the exceptions to the Final Rule, the challenges that have been lodged against the Final Rule, and the steps employers should take going forward. #FTC #finalrule #noncompete #agreement #employmentlaw #HR

Stay informed and prepared with insights from Soto Law Group! Dive into our latest blog as we dissect the implications of a potential legislative ban on non-compete clauses. Understand what this could mean for both employers and employees, and how it might reshape the landscape of employment agreements. Read more about this critical issue: https://lnkd.in/gBfrvSqZ #EmploymentLaw #NonCompete #BusinessLaw #SotoLawGroup

The Federal Trade Commission has voted to ban the use of noncompetition agreements for almost all workers in the U.S. The rule is expected to take effect in four months unless it is blocked by legal challenges. Our expert panel discussed what the rule says, the potential impact on employers, what the timeline might be for implementation, implications for nondisclosure agreements and other restrictive covenants, what legal challenges are expected and more. Take a listen: https://lnkd.in/dPEdejNi

Important developments on the horizon for #noncompete agreements! Check out the below article written by my colleagues for more information.

On January 1, 2024, two new #California statutes that could have a #national impact on employee restrictive covenants, such as #noncompete and non-solicitation agreements, will become effective. Read Jeff Boxer and Kevin Simpson on the #statutes, and what employers should consider until questions about the constitutionality, scope, and enforceability of these new statutes are answered: https://lnkd.in/euqD--az

US ban on employee non-competes: Here’s the detail on the The Final Rule as well as key take aways from our US antitrust team. https://lnkd.in/e58BfbS4

The Federal Trade Commission has voted to ban the use of noncompetition agreements for almost all workers in the U.S. The rule is expected to take effect in four months unless it is blocked by legal challenges. Our expert panel discussed what the rule says, the potential impact on employers, what the timeline might be for implementation, implications for nondisclosure agreements and other restrictive covenants, what legal challenges are expected and more. Take a listen: https://lnkd.in/ewakQHJu

This proposed FTC noncompete rule (to be voted on today) will have a seismic impact on businesses and employees throughout the country. Beyond the obvious labor & employment law implications, there is a real messaging/communications challenge here for businesses. If employees are given more freedom to move around, join competitors and lure clients, how does a business attract the best people and keep them? How do you communicate your corporate culture and amplify your brand? How do you prioritize job satisfaction and retention? How do you reinforce client loyalty? Lots to wrestle with here, and much of it goes beyond the X's and O's of the law.