On February 3, the Delaware Supreme Court issued a critical decision for private equity (PE) sponsors and institutional employers in North American Fire Ultimate Holdings LP v. Doorly. The court clarified that restrictive covenants—specifically non-competes tied to equity grants—remain enforceable even if the equity is later forfeited due to an employee’s misconduct.Continue Reading Delaware Supreme Court Reverses Court of Chancery, Affirming that Forfeited Equity Remains Valid Consideration for Non-Competes
Delaware Chancery Court Enforces Properly Limited Non-Compete While Delaware Supreme Court Affirms Refusal to Enforce or “Blue Pencil” Overbroad Non-Competes
Over the last few years, and just last week, Delaware courts have refused to enforce, or to revise or “blue pencil” to make enforceable, a number of restrictive covenants, even in the traditionally favored sale‑of‑business context, when the covenants appear to exceed the protectable interest of the business with respect to the particular seller or senior executive that agreed to the restrictive covenants. Against that backdrop, the Court of Chancery’s December 8, 2025, ruling in Derge v. D&H United Fueling Solutions Inc. stands out: the court enforced a five‑year, multinational non‑compete against a target C-suite executive who held only a 0.73% stake and received roughly $965,000 at closing.Continue Reading Delaware Chancery Court Enforces Properly Limited Non-Compete While Delaware Supreme Court Affirms Refusal to Enforce or “Blue Pencil” Overbroad Non-Competes
Massachusetts Superior Court Holds Noncompete Agreements Between Parent Companies and Their Subsidiaries’ Employees Are Unenforceable
The Massachusetts Superior Court has ruled that noncompete agreements arising out of the employment relationship entered into between a parent company and a subsidiary’s employee are not enforceable because the parent company does not fall within the meaning of “employer” under the Massachusetts noncompete statute.Continue Reading Massachusetts Superior Court Holds Noncompete Agreements Between Parent Companies and Their Subsidiaries’ Employees Are Unenforceable
FTC Issues Letters to Healthcare Employers Regarding Non-Compete Agreements
Although the Federal Trade Commission (FTC) announced on September 5 that it was ending its appeals of decisions in the Fifth and Eleventh Circuits which set aside the FTC nationwide non-compete ban thereby ending its defense of the Biden administration’s 2024 rule, the FTC has simultaneously communicated that it intends to pursue enforcement action alleging anticompetitive conduct with respect to restrictive covenants that it views as being overly broad or unnecessary, and that it is particularly focused on the healthcare industry. Continue Reading FTC Issues Letters to Healthcare Employers Regarding Non-Compete Agreements
States Continue to Refine Their Treatment of Non-Competition Agreements
The vast body of restrictive covenant law continues to develop across the country as states navigate refining their approach to non-compete and non-solicitation agreements with some expansions along with the general trend of more restrictions.
Below we outline recent developments regarding state non-compete and non-solicitation laws in Kansas, Virginia, Florida, New Jersey and Colorado.Continue Reading States Continue to Refine Their Treatment of Non-Competition Agreements
Texas Caps Physician Non-Compete Buyouts and Adds New Limits Under SB 1318
On June 20, Texas Governor Greg Abbott signed Senate Bill 1318 (Amendment) into law, amending Texas Business & Commerce Code Section 15.50(b), which is commonly thought of as the “Texas physician non-compete buyout statute.” Specifically, the statute previously required that any non-compete restricting a physician’s right to practice medicine must include a buyout right, permitting the physician to pay a certain buyout amount to avoid the non-compete restriction. Continue Reading Texas Caps Physician Non-Compete Buyouts and Adds New Limits Under SB 1318
Register Now | Responding to Policy Shifts Under the Trump Administration
As we navigate a new year and a new administration, we are all grappling with an unprecedented wave of executive orders and memoranda from the Trump administration that are reshaping the workplace.
From dramatic shake-ups in the EEOC and NLRB to increased scrutiny of DEI practices, employers are facing yet another season of uncertainty.
Continue Reading Register Now | Responding to Policy Shifts Under the Trump Administration
Ruling to Halt FTC’s Ban on Non-Compete Agreements
In a recent G2 Intelligence article, I discussed the Texas court ruling halting the ban on non-compete agreements issued by the Federal Trade Commission (FTC) in 2024. While the FTC plans to appeal the decision, employers should be aware of the issues surrounding non-competes in order to stay compliant with the law.Continue Reading Ruling to Halt FTC’s Ban on Non-Compete Agreements
Federal Court Blocks FTC Non-Compete Rule Nationwide
Today, the federal district court for the Northern District of Texas, in Ryan LLC v. Federal Trade Commission [FTC] (opinion found here), “set aside” with nationwide effect, the FTC “Non-Compete Rule.” The federal district court held that the FTC exceeded its statutory authority in promulgating the Non-Compete Rule, concluding “the text and the structure of the FTC Act reveal the FTC lacks substantive rulemaking authority with respect to unfair methods of compensation….”Continue Reading Federal Court Blocks FTC Non-Compete Rule Nationwide
Notices Under FTC Rule on Non-Competes: What Should I Be Doing Now?
As previously covered on our HR Law Talk blog, the Federal Trade Commission’s (FTC) non-compete ban (FTC Rule or the Rule) is scheduled to take effect on September 4, 2024. Issued in April, the FTC Rule prohibits all non-competes arising out of employment relationships – with the exception of existing agreements with “senior executives,” as defined by the Rule. Although many legal experts have hypothesized that the federal courts would enjoin the Rule, the future of the FTC Rule remains uncertain. Accordingly, employers must remain informed on the most recent court rulings involving the FTC Rule and prepare as though it will take effect on September 4.Continue Reading Notices Under FTC Rule on Non-Competes: What Should I Be Doing Now?