Federal Judge Blocks Nationwide Noncompete Ban

Lake Effect previously blogged about the FTC’s ban on noncompetition agreements.  In a game-changing decision for employers, a federal judge in Texas has blocked the FTC’s nationwide ban on noncompetes, which was scheduled to take effect on September 4, 2024. The judge ruled that the FTC lacked substantive rulemaking authority to address unfair methods of […]

Employers Beware: Your Noncompete May Violate Federal Law

NLRB General Counsel: Most Noncompete Agreements Violate the NLRA Many employers require employees to sign noncompete agreements before, during, or upon separation from employment in an effort to prevent direct competition and protect business interests. This long-standing practice faces increasing resistance from state legislatures, as well as federal agencies like the Federal Trade Commission. The […]

NLRB Scrutiny Requires Review of Employee Agreements

Based upon the NLRB’s recent decision in McLaren Macomb (February 23, 2023) and related General Counsel Memorandum 23-05 (March 22, 2023), employers (whether unionized or not) should review severance and other employment agreements containing confidentiality, non-disclosure, or non-disparagement provisions to ensure compliance with the Board’s restrictive new standards. In McLaren Macomb, the NLRB examined severance […]