The Federal Trade Commission’s rule banning most non-compete agreements is now before a federal appellate court. On May 7, 2024, the FTC proposed a rule that would have banned most non-compete agreements. This rule would have substantially impacted many businesses because non-compete agreements are used to prohibit employees from using the company’s information to compete…
Continue reading ›A lawsuit is generally considered over once a litigant obtains judgment in its favor assuming no appeal is taken and no post-judgment collection issues exist. However, the losing party is often left unsatisfied. Therefore, the loser may try to “re-do” the lawsuit by suing the defendant again using slightly different claims or lodging the lawsuit…
Continue reading ›Non-compete agreements have received significant attention this year after the Federal Trade Commission issued a rule on April 23, 2024, banning most employee non-compete agreements. The rule was scheduled to go into effect on September 4, 2024. However, on August 20, 2024, a court in the United States District Court for the Northern District of…
Continue reading ›Many businesses require employees, independent contractors, and others to sign restrictive covenants. Common restrictive covenants are non-compete covenants prohibiting competition with the business, non-solicitation covenants prohibiting solicitation of the businesses’ customers and employees, and non-disclosure covenants preventing the disclosure of certain company information. However, these covenants have certain restrictions on enforceability. Some of those restrictions…
Continue reading ›Businesses commonly enter into restrictive covenants with their employees to prohibit them from unfairly competing with the business during and after employment. Restrictive covenants include contracts that restrict competition, such as non-compete agreements, non-disclosure agreements, and confidentiality agreements. When preparing a restrictive covenant, what provisions should be included? Typically, a business should include provisions that…
Continue reading ›The Federal Trade Commission’s (FTC) rule banning most non-compete agreements continues to produce legal developments. Conflicting opinions were previously issued by a court in the U.S. District Court for the Northern District of Texas and by a court in the U.S. District Court for the Eastern District of Pennsylvania. In Ryan LLC v. FTC, Case…
Continue reading ›The Federal Trade Commission (FTC) controversially issued a final rule banning most non-compete agreements. This rule severely impedes the ability of businesses to protect their legitimate business interests such as customer relationships, goodwill, confidential business information, and trade secrets. However, the FTC’s rule is facing legal challenges from different directions. Last week we wrote about…
Continue reading ›Under Florida law, enforcement of a non-compete agreement requires requires proof of at least one “legitimate business interest.” Fla. Stat. § 542.335 (“The person seeking enforcement of a restrictive covenant shall plead and prove the existence of one or more legitimate business interests justifying the restrictive covenant.”). A failure to plead or prove the existence…
Continue reading ›A third-party can enforce a contract even though it is not a party to that contract if the contracting parties expressly intended to primarily and directly benefit the third-party. Bochese v. Town of Ponce Inlet, 405 F.3d 964 (11th Cir. 2005) (“Under Florida law, a third party is an intended beneficiary of a contract between…
Continue reading ›The parol evidence rule is a substantive rule of law that limits the introduction of evidence to interpret the meaning of a contractual provision. King v. Bray, 867 So. 2d 1224 (Fla. 5th DCA 2004) (“The parol-evidence rule is a substantive rule of law and… provides that a written document intended by the parties to…
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