Articles Tagged with Non-compete

FTC Bans Most Non-Compete Agreements

April 25, 2024 | by Jonathan I. Nirenberg

New Rule Will Ban Most Non-Compete Provisions

The Federal Trade Commission (“FTC”) has issued a new Rule that soon will ban virtually all non-compete agreements in the United States.

Specifically, on April 23, 2024, the FTC issued a new Rule that deems it to be an unfair method of competition for anyone to (1) enter into or attempt to enter into a non-compete clause, (2) enforce or attempt to enforce a non-compete clause, or (3) tell someone else that a worker is subject to a non-compete clause. However, for “senior executives,” employers still can enforce non-compete agreements that were entered into before the Rule’s date effective date.

Appellate Division Narrows But Enforces ADP’s Non-Compete Agreement

August 15, 2019 | by Jonathan I. Nirenberg

On July 26, 2019, New Jersey’s Appellate Division issued a detailed ruling regarding the non-compete and non-solicitation provisions in ADP, LLC’s stock option plan. In the process, the court provided a detailed explanation of how New Jersey courts should analyze restrictive covenants.

The appeal stems from separate cases ADP filed against six of its former sales representatives, Erik Kusins, Ryan Hopper, Anthony M. Karamitas, Nick LeNoble, Michael DeMarco and Daniel Hobaica. They had mixed results at the trial court level. Those cases were consolidated in a single appeal.

ADP has restrictive covenants with most of its sales force. Specifically, most of its sales employees are required to sign agreements that include non-compete and non-solicitation provisions that prohibit them from soliciting any ADP clients who they had contact with at ADP, for 12 months after they stop working for ADP, in the geographical territory in which they worked for ADP.