Federal agencies continued their efforts to restrict the use of restrictive covenant agreements in employment, but such efforts appear largely to have fallen short. Washington expanded and clarified its non-compete statute, while six other states passed laws restricting the use of non-compete agreements in the healthcare sector. Supreme Court decisions in Georgia and Delaware were beneficial to employers seeking to utilize employee non-solicit and forfeiture for competition provisions, respectively.

2024 was quite a year in unfair competition and trade secrets law, with the Federal Trade Commission’s final rule on non-competes garnering widespread mainstream media attention. While the FTC final rule has been set aside pending appeal, employers’ use of restrictive covenant agreements continues to be scrutinized by the National Labor Relations Board and constrained by multiple state legislatures. Conversely, courts in Georgia and Delaware made life easier for employers seeking to utilize employee non-solicit and forfeiture for competition provisions, respectively. This article recaps the top regulatory, legislative, and judicial developments in 2024 and what employers need to know to be ready for 2025.

Federal Regulatory Activity

The Twists and Turns of the FTC Final Rule

On April 23, 2024, the FTC approved by a 3-2 vote its final rule that would have effectively banned employers’ use of non-compete agreements, with very limited exceptions. The expansive language...

Read Full Story: https://news.google.com/rss/articles/CBMie0FVX3lxTE04RWVad0s1Yjl6dUV4V29tVV9G...