2023 started off with a bang, and it is certainly not ending with a whimper. On January 4, 2023, the Federal Trade Commission (FTC) announced the settlement of two enforcement actions against employers arising out of their use and enforcement of noncompetes. The very next day, the FTC proposed a rule that would ban noncompetes nationwide if enacted (which we do not believe will ever happen), with only a very narrow exception for noncompetes entered into in connection with the sale of a business.
The year only continued to get more turbulent in this area of law, with Minnesota banning noncompetes statewide, California expanding its noncompete prohibition and attempting to broaden the reach of its laws, the National Labor Relations Board (NLRB) getting in on the fun, and the New York legislature passing a law that would ban noncompetes in that state as well, with no exceptions even for noncompetes entered into in connection with the sale of a business.
Well, there is finally some good news for employers and dealmakers as we wrap up the year. As we previously reported, after fierce (albeit somewhat belated in our view) opposition from the New York business community, Governor Kathy Hochul indicated that she would not sign an outright noncompete ban, but instead preferred more “balance” with a compensation threshold and a carveout for noncompetes entered into in connection with the sale of a business. Unable to reach a deal with the legislature, Governor Hochul has now vetoed...
Renowned human rights lawyer, Femi Falana, SAN, has criticised President Bola Tinubu for relying on claims by United States President Donald Trump regarding the reported killing of senior Islamic ...