On April 23, 2024, in a move that will have significant ramifications for employment contracts and intellectual property (IP) rights, the Federal Trade Commission (FTC) issued a rule banning all future noncompete agreements nationwide with limited exceptions. The rule marks a pivotal moment for trade secret protection and enforcement strategies as it promises to reshape the relationship between employers and employees and impact safeguards for proprietary information.
Noncompete agreements have long been used to temporarily restrict employees from working for a competitor or starting a competing business after leaving an employer. These agreements are often used to protect a company’s IP by prohibiting employees from taking and/or disclosing proprietary information, such as customer lists, to competitors.
On April 23, 2024, the Federal Trade Commission (FTC) voted 3-2 along party lines to ban all new noncompete agreements nationwide and render existing noncompete agreements binding most workers unenforceable. The Final Rule, slated for publication in the Federal Register, provides that employers’ use of noncompete agreements amounts to an “unfair method of competition” that runs afoul of Section 5 of the FTC Act.
For a deeper dive, join our multidisciplinary team of employment and antitrust lawyers for a webinar covering what employers need to know about the Final Rule and what to do next.
FTC’s Final Noncompete Rule: What It Means and Next Steps for Employers Wednesday, May 8, 2024 Webinar | 2:00 – 3:00 pm (EDT)
On September 30, 2023, California Governor Gavin Newsom signed SB 553 into law, creating a new layer to California employers’ existing injury and illness prevention programs (IIPP). Under SB 553, employers are required to implement a workplace violence prevention plan (WVPP) no later than July 1, 2024, to provide training to employees regarding the WVPP and to keep records of workplace violence incidents. As of January 1, 2025, the law also expands employers’ and employee representatives’ rights to obtain restraining orders on behalf of employees affected by threats of workplace violence.
On January 18, 2024, in a highly anticipated and unanimous decision, the Supreme Court of California barred striking a claim under the Private Attorneys General Act (PAGA) on trial manageability grounds alone, instead authorizing due process defenses to PAGA claims (Estrada v. Royalty Carpet Mills, Inc.). The decision also commented approvingly on representative testimonies, surveys and statistical analyses. As a result of the decision, employers now face a new challenge of marshalling such evidence to their defenses and challenging the misuse of such evidence on due process grounds in future PAGA litigation.
The rules and regulations on workplace and employee speech, interpretation and enforcement are rapidly changing. Companies must carefully factor legal and business implications into their strategy to reach the desired outcomes for their customers, workforce and brand.
In this Law360 article, Michael Sheehan, Michelle Strowhiro and Alexander Randolph examine important considerations for companies as they navigate the complexities of workplace and employee speech.
A recent National Labor Relations Board decision will likely expose a broader range of workplace rules to regulator enforcement. According to this HR Dive article, introducing even ordinary workplace rules during unionization could draw new scrutiny. However, as Christopher Foster and Marjorie C. Soto Garcia explain, there are steps employers can take to mitigate risk.
Corporate transactions and investments involving union issues require concrete analysis of risk, contingencies and game plans. In a January 31, 2024, webinar, McDermott’s Labor and Employee Benefits Groups will focus on practical steps and strategies to successfully navigate and evaluate key considerations for transactions involving unionized businesses.
Discussion topics include:
Union notice and bargaining triggers
Successorship, neutrality and organizing issues
Multiemployer pension, withdrawal and other benefits considerations
Following a dynamic 2023 coupled with a continually evolving legal landscape, employers may feel that they are left with more questions than answers. During a recent webinar, McDermott’s employment team took a dive into the most pertinent legal updates of 2023 and shed light on uncertainties to prepare employers for the year ahead. The discussion covered new laws taking effect in 2024, explored key developments impacting the workforce and advised on what employers can expect heading into the new year.
How can HR professionals elevate their game to attract talent and spearhead innovative strategies?
In this ManageHR article, Elizabeth Vassolo, McDermott’s Global Head of Employment Brand, shares her perspective on emerging HR trends, highlights a game-changing project and offers actionable advice.
Subscribe
